Are 3% Home Interest Rates Possible Again?

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[freeze]

We will not see 3% 30yr fixed anytime in the next 5 years. Potentially even longer if we avoid a recession.

[frederickwallace]

We will be extremely lucky of interest rates going to 5% in the next 5 years

[meeksejustin]

I’m sitting at 2.25% and never touching a refinance

[luisdiegocr]

Economist spend 50% of the time saying what is going to happen next, the other 50% of the time are use explaining why they prediction failed

[maxwellspeedwell]

In 1979 I went in to a bank to get an 8 1/2% interest loan. I was told they didn’t make house loans but with impeccable credit I could get an 18% loan on a car .

[debratatulinski]

I've had a 4% fixed mortgage for awhile. I'm doing everything I can to pay my house off before retirement.

[MrsHappilyeverafter]

We were fortunate to get a 2.25% rate 🙌🏼 😊

[cometasporelcielo]

the fed has made it clear that they only expect 1-2 rate cuts this year, and those will be a QUARTER POINT

[mle]

But Dave says is always a great time to buy regardless of interest rates or prices.

[Amanda-Lee]

well, that's a way to dance around and answer

[colinjarvis]

But we need a higher interest rates, not lower. We have a borrowing problem. People forget that there has to be a lender in order for there to be a borrower or somebody has to save in order for you to be able to spend. These low rates are being subsidized by the government

[charlesphilhower]

Raising interest rates is a way of trying to control inflation and inflation is still high. Also in a tanking Consumer economy increased defaults and forclosures is a factor in raising interest rates to cover losses.

[rjshaw]

I don’t think you’re gonna see interest rates down at 3%. Things are about to get tough for interest rates with the 10 year at 4.5%.

[BobbyMucka]

3% won't happen from private institutions for awhile. One of the reasons so many banks started to fail was lack of liquidity. They'd loan out money at 2-3% and if they needed liquidity, they'd have to sell those MBS products if they didn't already. Selling an MBS at 2-3% rate in a 5-7% rate environment means you will very likely take a 40-50% loss. People won't buy an MBS product at 3% if they can get 6% so the price must adjust accordingly. Basically, a 500k loan at 3% is the equivalent of a 250k loan at 6% holding maturity and other factors equal.

[LoveDove]

Im sorry im losing my mind. Im under contract with a house which i thought would be a great investment. With everything going on and with having a hand full of trouble through this process of purcgasing a home. 195k apprasied 205k today. Not sure if im making a mistake🤦 State - New Mexico. Rio rancho area

[FZBillClinton]

In my opinion, the Fed shouldn't think about cutting rates till the end of the year.

[Lostvikiing]

Meanwhile over here in Sweden with a 2, 84% interest rate (3month adjustable), up from 1, 09% (2021) 🤣

[Johnny.G]

There will most likely never be a three percent interest rate ever again. What happened in 20-21 came during a once in a hundred year pandemic.

[jeanriordan]

The 3% home loan was never the norm and was implicated due to the 2008 housing crisis during the G.W.Bush Administration, deregulation of lending practices which attributed to the ridiculous Negative Admertization Loans just being giving to everyone. They never should of left the lower interest in the place after the economy started to recover. People saw this was a new normal.

[martinlutherkingjr.]

Just pay cash instead of trying to leverage up