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Post-election rate hike starting to kill deals

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Mortgage Professional America | 22 Nov 2016, 08:15 AM Agree 0
A sharp spike in mortgage rates in the wake of the presidential election is leaving some lower-income borrowers out in the cold
  • Long Island Agent | | 22 Nov 2016, 11:35 AM Agree 0
    Buyer finally found their dream home (their first) on November 5th. The young couple revisited with Moms and Dads, and decision was made. Their offer was soon accepted. Home was inspected (and price was fine-tuned). Buyer's attorney received Contract on November 16th...and here we are. Presently the couple are mortgage-shopping with promises of 'beating the other guy's' rate...Monthly payments have increased more than $60 per month. Dad's are rethinking the whole thing; couple is heartbroken, and they're hoping for some sort of a "correction"...
  • 25-yr Mortgage Vet | | 22 Nov 2016, 11:49 AM Agree 0
    Hey, but look on the bright side, at least we won't have to deal with the big nasty CFPB, and TRID rules in the not to distant future, or will we?
  • 31 Year Mortgage LO | | 22 Nov 2016, 12:04 PM Agree 0
    Really folks? We knew rates couldn't stay that low forever....
  • Northern California Mortgage Broker | | 22 Nov 2016, 12:13 PM Agree 0
    I have a couple looking to refi. Early Nov. LE was presented and rates were in line up until they declared Trump the winner. Suddenly, the markets went crazy. In the past weeks we have experienced several price change notifications. /-, usually twice a day. Hopefully rates will recover soon.
  • John D | | 22 Nov 2016, 12:16 PM Agree 0
    If $60 makes or breaks the deal, maybe they were buying too much house to begin with.
  • 35 yr mortgage broker | | 22 Nov 2016, 12:31 PM Agree 0
    We who have been in the business for many years knew rates would not stay low but we did not anticipate the rates climbing dramatically in such a short period of time. Many transactions are falling to the side. With the length of time it takes to get the mortgages through the system when do we lock in the interest rate? Not now! Hope this reactionary market will soften. I always pre-qualify my clients at a higher rate in anticipation of a market move but what I did not anticipate was how quickly the market moved! No crystal ball here!!
  • Loanguy | | 22 Nov 2016, 01:11 PM Agree 0
    Have your clients call me and I will give them a 7/1 Arm. Similar rates now to the 30 year conforming fixed before the election. Don't cry about a rate hike. Figure it out!
  • gh | | 22 Nov 2016, 05:14 PM Agree 0
    Local banks are still lying to the client telling my client after I told him what had happened that they still offer 30 yr in the 3's and they will beat anyone by .25 But this is obviously true if BOA says this. Been in the business 37 years seen rates at 27 . never fails when the government can control the appraisal . Nonsense that this client should have to go for a FHA when he is a prime candidate for a conventional. everyone should be playing on the same field not just the select elite with one set of rules (due to lobbyists ) and the Brokers that were given credit for the "Crash". You are right Trump will hopefully put this together right by dumping Dodd Frank.
  • Brian in Michigan | | 22 Nov 2016, 06:13 PM Agree 0
    in Long islands case, I can definitely understand the frustration. A solution may be a sellers concession (seller funded rate buydown) to offset some of the rate differential.
  • Ryan in KY | | 22 Nov 2016, 06:47 PM Agree 0
    We knew rates would obviously and eventually rise but we expected a slow and paced rise and instead happened in a matter of days after the election. A slow gradual increase would have been tolerable. We expected 4% rates (Conventional) by Jan but not before. The biggest impact we saw were on refi's where borr's drug their feet before getting process started and found that rates jumped .50% and in some cases created situations where the benefit was no longer viable, especially on streamlines, which impact the lower income borrowers. You snooze you lose I suppose.
  • Long Island Agent | | 29 Nov 2016, 11:29 AM Agree 0
    I agree wholeheartedly, but in this particular case it wasn't the $60, it was the extra $21,000 that has the Dads reeling...
  • TimK | | 29 Nov 2016, 02:31 PM Agree 0
    You have got to be kidding. Is it safe to assume you mean $60/month x 360 months? $21,000 over 30 years? The dad is reeling over that? "Dad" needs to get a grip on reality. I agree with the previous post. If the kids can't afford the extra $60 per month they should buy a less expensive house, skip McDonald's a few times a month or keep living in dads basement.

    Dad is making a mounting out of a molehill. Kids would be better off without his input.
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