Sat, Feb 28, 2015, 7:54 PM EST - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Comstock Holding Companies, Inc. Message Board

  • sleepy.ichabod sleepy.ichabod Jun 27, 2013 12:09 AM Flag

    Mortage rates

    According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.54 percent in May from 3.45 percent in April; it was 3.80 percent in May 2012.

    icha

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • July1,1 Average Rate 30 yr fixed 4.29 %, 15 year fixed 3.39 %

    • This stock is going down everyday no matter how market performing.

      • 1 Reply to khanhvinhle
      • You also have to take into consideration that a large majority of buyers in this area are paying with cash ( mortgage rates don't matter). There are 10-12 offers on each house in less than a week. There is usually one person there that offers cash to get the winning bid. If your not from this area, you might not know. I have several realtor friends and family. What may happen because of the rates rising is less demand, but when you have 10-12 people bidding on each available home..... you still only need 1 person to buy. In a year, if your only getting 3-4 bidders... thats still not bad. At this point, I'm expecting prices to stabilize. If rates hit 6 or 7%, then we might see a decline in prices so that people will still be able to afford homes + a mortgage. Its not 2008 though. Earnings for HB are still going to surprise for the next year unless rates increase to 6-7% in the next few months.

    • According to Freddie Mac it is 4.46 % now on June 27.

      It's up quite fast. The sudden mortgage rate hike worries many HB investors. But Builders themselves seem not to worry too much. If you read Lenar's conference call transcript, you will find that they think it works rather positively. Now home buyers are anxious to buy home before mortgage rate goes up further. Builders also point out, on average economy mortgare rates were around 6 to 7 %. Also lenders are more likely to loosen up their underwriting stadard since they are making more money on higher interest rates.
      Here is a supporting evidence from NAR
      "WASHINGTON (June 27, 2013) – Pending home sales rose in May to the highest level since late 2006, implying a possible spark as mortgage interest rates began to rise, according to the National Association of Realtors®.

      The Pending Home Sales Index,* a forward-looking indicator based on contract signings, increased 6.7 percent to 112.3 in May from a downwardly revised 105.2 in April, and is 12.1 percent above May 2012 when it was 100.2; the data reflect contracts but not closings.

      Contract activity is at the strongest pace since December 2006 when it reached 112.8; pending sales have been above year-ago levels for the past 25 months." Basically, Lawrence Yun is repeating what Lenar guys said.

      Good luck to all,
      ichab

 
CHCI
0.97-0.03(-3.00%)Feb 27 4:00 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.