CNBC: Mortgage rates surge to 6.28%

[Tomconroy]

Mortgage rates jumped sharply this week, as fears of a potentially more aggressive rate hike from the Federal Reserve upset financial markets.

The average rate on the popular 30-year fixed mortgage rose 10 basis points to 6.28% Tuesday, according to Mortgage News Daily. That followed a 33 basis point jump Monday. The rate was 5.55% one week ago.


Rising rates have caused a sharp turnaround in the housing market. Mortgage demand has plummeted. Home sales have fallen for six straight months, according to the National Association of Realtors. Rising rates have so far done little to chill the red-hot home prices fueled by historically strong, pandemic-driven demand and record low supply.

The drastic rate jump this week is the worst since the so-called taper tantrum in July 2013, when investors sent Treasury yields soaring after the Fed said it would slow down its purchases of the bonds.

https://www.cnbc.com/2022/06/14/30-year-mortgage-rate-surges-to-6point28percent-up-from-5point5percent-just-a-week-ago.html

[msongs]

1. glad I got my refi at 2.5 just a year ago nt

[pwb]

2. My mortgage rate was 11.00%.

Back in 1989. I had to pay points too.

[Amishman]

4. yes, and the house prices reflected it

This is a crisis without easy comparison as already record unaffordability and short supply hits some of the fastest rising interest rates.

[we can do it]

9. House prices then were similar to other items then.

Mortgage rates do not dictate home prices.

[Model35mech]

12. In 1982 my mortgage rate was 15%, and boomers were asked to bail out Social Security

because it had a .58% insufficiency... So Greenspan pushed for another 1.8% on our payroll.

My student loan was 6.9%, I paid it back in full to Watchoverya

We were SO privileged!

We just -must- SHUT UP!!!!

[MissB]

3. Jesus

Yeah, that'll put a damper on purchases.

Sheesh.

On edit: Dh's first house (which would eventually become our first house) was on a 30 year at a rate over 11%. But the purchase price was under $60k. Our second and current home was at 2.25% on a 15-year that we've since paid off. The purchase price was higher, but in line with the prices at the time.

I just continue to be astounded by the current cost of housing, and now I can throw in ridiculous interest rates too.

[SharonClark]

5. I paid over 11% in 1978.

Refinanced down to 9.4% a couple of years later.
Paid it off in 15-years.

6.28% doesn’t sound high. It’s all relative to your own experience.

[beaglelover]

6. Holy crap! Glad I refinanced to 2.5% early last year!

Another good decision I made in 2020 was buying a Tesla. Never thought I'd see gas prices here in Los Angeles over $8 per gallon!

[MissB]

7. $8! Wow!

I have an EV (not a Tesla) and yes, I too am glad. I think the most I've seen is $6 for premium, but the regular is still within the mid-$5 range.

[beaglelover]

8. Yes, my husband had to go to West Hollywood yesterday and said he saw $8 per gallon for premium fuel

at a Mobil gas station. Price gauging and profit taking by the big oil companies is disgusting.

[Sympthsical]

10. *laughs in 2%*

Yeah, nah. I'm good. Did a refi end of last year. Think I'll just not be doing anything until this place is paid off.

[mnhtnbb]

11. I bought a townhouse with a 16% mortgage

in the early '80's.

But I bought my last--and final-- house in 2020 with a 2.3% 15 year mortgage. That's it. I'm done. Going out of this one feet first.

[roamer65]

13. Housing market crash coming in 3...2..1...

[JCMach1]

14. And that will bring a harsh recession...

[roamer65]

15. Probably similar to the Great Recession.

[ancianita]

16. More or less the same as during the Bush years.