3 ms·

This. Anyone I know that has a sub 3% is planning on staying put until their end. The rest of us are never going to see sub 3% in our lifetimes again. 6% is her

This. Anyone I know that has a sub 3% is planning on staying put until their end. The rest of us are never going to see sub 3% in our lifetimes again. 6% is here to stay. Maybe in the distant future we hit 5.5% but unlikely. I went through a divorce and my ex got the house. I thought I would travel for a few years before buying another one and I missed out on the 3% rates.

jghn 2y ago
I don't disagree but people talking about current rates as if they're terrible distort reality. It really wasn't that long ago (aughts) that rates in the 5/6% range were viewed as historically good. And I'm old enough to remember when rates in the teens were normal.
- polymathemagics 2y ago
  Yeah, and for a lot of earners in high tax states, the effective interest rate you pay is essentially almost half off thanks to the mortgage interest tax deduction. If your marginal tax rate across federal / state / local is high (mine's 46%), then you can get back almost half the interest. Which shortens the gap between a 3% vs 6% mortgage, the effective difference being more like 1.5% than 3%.
flatline 2y ago
I got a 3.25% loan post-divorce in a part of the country I hated, and ended up selling and relocating. I do not plan on buying again soon, current prices combined with current interest rates make it unappealing. If home prices come off or stagnate long enough, I will once again consider buying. Right now I can set aside $1000/mo renting, which is enough to pay someone else for the hassle of maintaining a house.
lm28469 2y ago
6%?! Damn in France we went from 1% to 4% and it felt like the end of the world, 6% is insane
- JeremyNT 2y ago
  Key to know for people outside the US (if you don't already know this) is that here you almost always deal in 30 year fixed mortgages. The buyer will never see their rates go higher than this in the life of the loan, and in reality, if/when rates drop again, they can refinance to a new 30 year fixed at the lower rate.
silisili 2y ago
Never say never. It may be a long while til we see 3%, but 5.5% isn't far off. Some saw about that during the recent dip a few months ago. There are of course a lot of factors, but I think we'll be back in the high fives at some point in 2025 and settle around 4.5-5 after that. That's if Mr Tariff doesn't spike inflation.

jghn 2y ago

I don't disagree but people talking about current rates as if they're terrible distort reality. It really wasn't that long ago (aughts) that rates in the 5/6% range were viewed as historically good. And I'm old enough to remember when rates in the teens were normal.

polymathemagics 2y ago
Yeah, and for a lot of earners in high tax states, the effective interest rate you pay is essentially almost half off thanks to the mortgage interest tax deduction. If your marginal tax rate across federal / state / local is high (mine's 46%), then you can get back almost half the interest. Which shortens the gap between a 3% vs 6% mortgage, the effective difference being more like 1.5% than 3%.

flatline 2y ago

I got a 3.25% loan post-divorce in a part of the country I hated, and ended up selling and relocating. I do not plan on buying again soon, current prices combined with current interest rates make it unappealing. If home prices come off or stagnate long enough, I will once again consider buying. Right now I can set aside $1000/mo renting, which is enough to pay someone else for the hassle of maintaining a house.

lm28469 2y ago

6%?! Damn in France we went from 1% to 4% and it felt like the end of the world, 6% is insane

JeremyNT 2y ago
Key to know for people outside the US (if you don't already know this) is that here you almost always deal in 30 year fixed mortgages. The buyer will never see their rates go higher than this in the life of the loan, and in reality, if/when rates drop again, they can refinance to a new 30 year fixed at the lower rate.

silisili 2y ago

Never say never. It may be a long while til we see 3%, but 5.5% isn't far off. Some saw about that during the recent dip a few months ago. There are of course a lot of factors, but I think we'll be back in the high fives at some point in 2025 and settle around 4.5-5 after that. That's if Mr Tariff doesn't spike inflation.