Yippee, higher interest rates!

[Woodznutz]

My savings have been languishing with these low rates. I'm anxious to lock in the higher rates that are forthcoming. I'll settle for 4 percent long term. Anyone else happy about this?

 

[lennypartiv]

How the eff am I going to buy a house with interest rates going up like this?

 

[1srelluc]

I suspect lots of folks are going to be moving their funds into CDs if they hit 4%+.

 

[Woodznutz]

I suspect lots of folks are going to be moving their funds into CDs if they hit 4%+.

I'm looking at annuities as well. Some A rated companies are offering 4 percent now.

Edit: Annuity rates on this chart are lower than last week. Maybe they've borrowed all they need and are cutting rates back.

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[Harpy Eagle]

My savings have been languishing with these low rates. I'm anxious to lock in the higher rates that are forthcoming. I'll settle for 4 percent long term. Anyone else happy about this?

Not really happy about it. Savings is for emergencies or to build up for a purchase , nothing else.

I have a house being built and cannot lock in the mortgage rate for probably another 45 to 60 days. The Fed next meeting is not till the end of July so I am hoping the house is far enough long for me to at least lock in a rate.

 

[Harpy Eagle]

How the eff am I going to buy a house with interest rates going up like this?

Have a good credit score, put down at least 20% and you will be fine

 

[1srelluc]

Not really happy about it. Savings is for emergencies or to build up for a purchase , nothing else.

I have a house being built and cannot lock in the mortgage rate for probably another 45 to 60 days. The Fed next meeting is not till the end of July so I am hoping the house is far enough long for me to at least lock in a rate.

I don't suspect you will have any trouble with that....They are moving heaven and earth getting underway homes completed in my AO.....Several new homes going up in my AO had crews working at 0700 this morning.....Something I've not noticed before.....Fuck Juneteenth and Father's day I guess.

 

[Woodznutz]

Not really happy about it. Savings is for emergencies or to build up for a purchase , nothing else.

I have a house being built and cannot lock in the mortgage rate for probably another 45 to 60 days. The Fed next meeting is not till the end of July so I am hoping the house is far enough long for me to at least lock in a rate.

I get it.

My savings are for my retirement, so I want adequate income while preserving as much capital as I can.

 

[evenflow1969]

How the eff am I going to buy a house with interest rates going up like this?

Lol, ya poor poor baby. There was a time I paid double digiet interest. In 2001 I bought a house at 5.5 percent. The lowest I had seen in my life. Now I just pay cash. Hopefully interest rates make a slow down in rising cost. Then I will sweep up what I can and hope they dip again. There is some money to be made. Texas and Florida have a bunch about to hit foreclosure in November. There will be some bargains to be had. Couple that with lumber prices in a free fall it will be a rehab dream.

 

[Mr Natural]

How the eff am I going to buy a house with interest rates going up like this?

When I bought my house back in 1982, I assumed the sellers mortgage at 9.5% and took a second to cover the difference at 16%.

 

[Harpy Eagle]

I don't suspect you will have any trouble with that....They are moving heaven and earth getting underway homes completed in my AO.....Several new homes going up in my AO had crews working at 0700 this morning.....Something I've not noticed before.....Fuck Juneteenth and Father's day I guess.

The "no later than date" is Oct 4th. They seem to be ahead of schedule but the construction company will not move the date yet. I think they are still gun shy due to shortages in the past couple of years.

 

[HenryBHough]

How the eff am I going to buy a house with interest rates going up like this?

Patience.

If Democrats keep their seats in November The Communist Government will provide you the house you deserve no matter who they have to steal it form so long as that person is not "one of theirs".

 

[1srelluc]

The "no later than date" is Oct 4th. They seem to be ahead of schedule but the construction company will not move the date yet. I think they are still gun shy due to shortages in the past couple of years.

I guess it depends on the AO, the big thing here is getting the crews. It looks like materials are GTG or at least I've not heard talk of it at the morning eatery like I did at one time.

I have heard the "gun shy" thing as far as starting new homes in this climate.....I'm waiting for that shoe to drop next. Of course that will push used home prices up or at least keep them steady.

 

[Harpy Eagle]

I guess it depends on the AO, the big thing here is getting the crews. It looks like materials are GTG or at least I've not heard talk of it at the morning eatery like I did at one time.

I have heard the "gun shy" thing as far as starting new homes in this climate.....I'm waiting for that shoe to drop next. Of course that will push used home prices up or at least keep them steady.

This "climate" as you put it is why the builder required 20% earnest money, up from 10% according to our relator. I have never had a house built before so do not really have a good point of reference.

 

[1srelluc]

This "climate" as you put it is why the builder required 20% earnest money, up from 10% according to our relator. I have never had a house built before so do not really have a good point of reference.

That used to be the normal requirement......I'm glad to see they went back to it. Both the houses I had built were that way......The first in '78 and the second in '93.

 

[HenryBHough]

Two bids (only two contractors in the area) on a 1,200 square foot 2-bedroom house to be built on land already owned:

$800/square foot. $960,600 was the highest - the other was $1,400 less. Because she said she still had a little bit of old stock plumbing fixtures on hand and would use them based on what she paid for them a couple of years ago. Not stylish but flushable.

Questioned the prices: Mostly material cost increases made worse by shipment (it's a remote community) having tripled in price in the last several months. Labor costs more than doubled but rising fast because of shortage of skilled labor. One constractor has resorted to hiring liberal arts graduates and training them as laborers. The few he has are of local families and can't afford to live anywhere else (parents kept their old bedrooms).

Interesting that many possible upgrades are not seeing the same cost increases. Yes, the cost of things like fancier faucets are up but their weight is about the same to the shipping cost is no different than standard contractor grade.

Shifting from laminate to granite countertops is a pig of a different odor.
Any liberal arts grad able to tell us why?

 

[Harpy Eagle]

Two bids (only two contractors in the area) on a 1,200 square foot 2-bedroom house to be built on land already owned:

$800/square foot. $960,600 was the highest - the other was $1,400 less. Because she said she still had a little bit of old stock plumbing fixtures on hand and would use them based on what she paid for them a couple of years ago. Not stylish but flushable.

Questioned the prices: Mostly material cost increases made worse by shipment (it's a remote community) having tripled in price in the last several months. Labor costs more than doubled but rising fast because of shortage of skilled labor. One constractor has resorted to hiring liberal arts graduates and training them as laborers. The few he has are of local families and can't afford to live anywhere else (parents kept their old bedrooms).

Interesting that many possible upgrades are not seeing the same cost increases. Yes, the cost of things like fancier faucets are up but their weight is about the same to the shipping cost is no different than standard contractor grade.

Shifting from laminate to granite countertops is a pig of a different odor.
Any liberal arts grad able to tell us why?

Holy shit, where do you live? I am paying a bit over $160 a sqft. and that was with us upgrading the master bathroom

 

[Toddsterpatriot]

My savings have been languishing with these low rates. I'm anxious to lock in the higher rates that are forthcoming. I'll settle for 4 percent long term. Anyone else happy about this?

8% inflation is going to eat your savings away much faster than the (slowly increasing) savings rate will help.

 

[Woodznutz]

When I bought my house back in 1982, I assumed the sellers mortgage at 9.5% and took a second to cover the difference at 16%.

Bought my apartment building in 1994, 8 percent AIM, after three years it went to 9.14, came down slowly over time and was 7.14 when I paid it off in 2004.

 

[Woodznutz]

8% inflation is going to eat your savings away much faster than the (slowly increasing) savings rate will help.

That depends on your lifestyle. Also, there are always bargains to be had.