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US mortgage rates soar to a new high for the year, closing in on 7%

QChawks

QChawks

Heisman
Dec 17, 2022
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my 2.75% mortgage from 2011 is looking pretty good right now



 
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Tenacious E_rivals41982

Tenacious E_rivals41982

Heisman
Dec 4, 2001
5,876
19,194
113
scotchtiger said:
2.875% jumbo also during the Covid era. What a freaking deal.

Hope nobody listened to Dave Ramsey to pay these off 😂.
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I am at 2.75%. I have about 5 years left on my 15 year refi. I have been toying with paying it off but I’ve already paid most of the interest pursuant amortization tables, and there is no reason to do so at this point. I like listening to his show but he’s wrong on this one.
 
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HoggI74

HoggI74

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Nov 27, 2015
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lucas80 said:
High interests rates. High fuel costs. A failure in Iran. Trump's fear of turning into Jimmy Carter is coming true. Well, minus the Carter being a decent human being part.
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The long term historical AVERAGE for a 30 year is 7.68%. We're not even at the AVERAGE rate yet...

Still trying to correct the failure in Iran a half century ago...

Carter was a good man but the job was too much for him as he said...
 
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LafayetteBear

LafayetteBear

Heisman
Nov 30, 2009
35,115
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Running ginormous deficits is ruinous in terms of its effect on interest rates. The national debt ballooned roughly $7 Trillion to its current $40 Trillion in just a handful of years. Congress cannot keep doing that. We have to finance that debt. That means higher interest rates. How are mortgage rates gonna drop when this insane level of federal borrowing keeps exerting upward pressure on interest rates?! Do we have to have a federal treasuries auction at which no potential buyers of securities show up before the political class pays attention to the effect these deficits are having?
 
B

baltimorened

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May 29, 2001
8,730
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LafayetteBear said:
Running ginormous deficits is ruinous in terms of its effect on interest rates. The national debt ballooned roughly $7 Trillion to its current $40 Trillion in just a handful of years. Congress cannot keep doing that. We have to finance that debt. That means higher interest rates. How are mortgage rates gonna drop when this insane level of federal borrowing keeps exerting upward pressure on interest rates?! Do we have to have a federal treasuries auction at which no potential buyers of securities show up before the political class pays attention to the effect these deficits are having?
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the answer to your last question is probably yes...

but think about it...were we this concerned when the debt was $30 trillion with 10 year budgets showing deficits of nearly $2 trillion/year over the 10 year projected budget period? Nope....so we are where we thought we would be......now, , we're at the projected $40 trillion with the next 10 year federal budget projected to a close to $2 trillion/year deficit spending....are we concerned, nope. Republicans want to cut taxes and Democrats want to increase spending....Somehow, in the back of mind, it just seems that neither of these strategies gets us to deficit/debt reduction. And in my mind, this is not a partisan thing. We've elected Democrat and Republican leaders who either know something the rest of us don't about finance, or we're headed for a very, very steep cliff.
 
M

Moogy

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Jul 28, 2017
7,702
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LafayetteBear said:
Running ginormous deficits is ruinous in terms of its effect on interest rates. The national debt ballooned roughly $7 Trillion to its current $40 Trillion in just a handful of years. Congress cannot keep doing that. We have to finance that debt. That means higher interest rates. How are mortgage rates gonna drop when this insane level of federal borrowing keeps exerting upward pressure on interest rates?! Do we have to have a federal treasuries auction at which no potential buyers of securities show up before the political class pays attention to the effect these deficits are having?
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The “solution” is far more public spending, taxing only the rich and cutting off the economic future by raging against things like data centers. What could go wrong?
 
fatpiggy

fatpiggy

Heisman
Aug 18, 2002
27,484
26,362
113
firegiver said:
inflation wont allow for it. cough tariffs cough.
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Tariffs are a one time cost pass through, not a continually inflationary thing.

Plus, all the goods that have tariffs have core inflation close to their 2% target. Items that are causing the current CPI readings to be high: Housing and Energy.

Higher rates will not help housing. In fact, higher rates will keep less houses from going on the market. Anyone that is locked in with a 3-4% mortgage wont be able to afford to move, literally.

Higher rates will also not help Energy prices. The only thing that will help that is to get out of the Iran situation.

So, I bet on no rate hike. Warsh was not hired to raise rates.
 
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yoshi121374

yoshi121374

Heisman
Jan 26, 2006
13,239
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113
fatpiggy said:
Tariffs are a one time cost pass through, not a continually inflationary thing.

Plus, all the goods that have tariffs have core inflation close to their 2% target. Items that are causing the current CPI readings to be high: Housing and Energy.

Higher rates will not help housing. In fact, higher rates will keep less houses from going on the market. Anyone that is locked in with a 3-4% mortgage wont be able to afford to move, literally.

Higher rates will also not help Energy prices. The only thing that will help that is to get out of the Iran situation.

So, I bet on no rate hike. Warsh was not hired to raise rates.
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So warsh was hired to be a synchophant who does whatever Trump says, no matter the facts or ramifications just like most of us said when he was hired.

Nice that you can finally admit this you piece of **** troll with zero integrity.
 
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fatpiggy

fatpiggy

Heisman
Aug 18, 2002
27,484
26,362
113
Hydro2.0 said:
2.4 refi during covid
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Exactly. People like you will never move if you had to get a new mortgage at 7%. Wouldn't make sense for most people in that situation.

The closer rates get back down to your 2.4 the more likely the numbers work to move or increase supply,

Rates have to come down for housing inflation to subside.
 
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A

Anon1750875978

Heisman
Dec 26, 2018
9,453
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fatpiggy said:
Exactly. People like you will never move if you had to get a new mortgage at 7%. Wouldn't make sense for most people in that situation.

The closer rates get back down to your 2.4 the more likely the numbers work to move or increase supply,

Rates have to come down for housing inflation to subside.
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Correct, but Warsh is on record saying inflation of 2% is still the goal.

Dropping rates increases inflation.
 
Palmerhawk

Palmerhawk

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Jul 3, 2025
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EU Central Bank announced a .25 rate hike today.

Inflation # came in a lil hot today.
I think Warsh will end up with .25 hike also.
 
C

ClemsonCO14

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Dec 11, 2016
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Trump’s COVID stimulus package caused inflation the first time, but he was voted out of office before the nation re-opened and spending (and therefore inflation) took off.

Now his brain dead decisions - Iran, tariffs, record spending - is causing inflation and high rates once again. Who would have thought that a man who bankrupted numerous companies and only had any modicum of success in his inherited business might be a bad manager of our economy??
 
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dpic73

dpic73

Heisman
Jul 27, 2005
35,423
32,530
113
ClemsonCO14 said:
Trump’s COVID stimulus package caused inflation the first time, but he was voted out of office before the nation re-opened and spending (and therefore inflation) took off.

Now his brain dead decisions - Iran, tariffs, record spending - is causing inflation and high rates once again. Who would have thought that a man who bankrupted numerous companies and only had any modicum of success in his inherited business might be a bad manager of our economy??
Click to expand...
What(?)we are hot right now!


1789071486586.png
 
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QChawks

QChawks

Heisman
Dec 17, 2022
12,166
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30-year mortgage rates just hit 7.17%

A $500,000 mortgage over 30 years: $1,891/month

at

2.17% $3,384/month at 7.17%

That’s $537,500 more for the same home

And the odds of a Fed rate hike this week are 92%

Homeownership has become a luxury
 
K

Knickslions69

All-Conference
Oct 12, 2021
934
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QChawks said:
30-year mortgage rates just hit 7.17%

A $500,000 mortgage over 30 years: $1,891/month at 2.17% $3,384/month at 7.17%

That’s $537,500 more for the same home And the odds of a Fed rate hike this week are 92%

Homeownership has become a luxury
Click to expand...
Thanks Don
 
dpic73

dpic73

Heisman
Jul 27, 2005
35,423
32,530
113
QChawks said:
30-year mortgage rates just hit 7.17%

A $500,000 mortgage over 30 years: $1,891/month

at

2.17% $3,384/month at 7.17%

That’s $537,500 more for the same home

And the odds of a Fed rate hike this week are 92%

Homeownership has become a luxury
Click to expand...
1789508429961.png
 
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dgordo

dgordo

All-Conference
Nov 15, 2001
1,150
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ClemsonCO14 said:
Trump’s COVID stimulus package caused inflation the first time, but he was voted out of office before the nation re-opened and spending (and therefore inflation) took off.

Now his brain dead decisions - Iran, tariffs, record spending - is causing inflation and high rates once again. Who would have thought that a man who bankrupted numerous companies and only had any modicum of success in his inherited business might be a bad manager of our economy??
Click to expand...

people aren’t prepared for how bad this is going to get.
 
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