Question for bankers/mortgage brokers...

• The widening affordability gap in the wake of rising mortgage rates is set to be the overriding factor in the U.S. housing market this year, followed by low inventory levels and the evolving housing needs of baby boomers, according to Zillow's quarterly Home Price Expectations Survey, which polled 100 housing market experts.
• The impact of rising mortgage rates is minimal so far, Zillow noted, with an increase from 4% to 4.25% upping the monthly mortgage payment on a median U.S. home, which is valued at $193,800, by $23 per month.
• A significant slowdown in housing activity related to mortgage rates is not likely until those rates reach 5.5%, according to the survey. The conventional 30-year fixed mortgage rate is expected to be around 4.75% by the end of this year.

SECplayer said:

I've seen a lot of detailed responses to lending questions in the past so know some of the posters here are in that industry. I got a mortgage back in 2012 when rates were really low (30 yr fixed @ 3.5%).

About to finalize an offer on a new home so asked for a quick quote from my lender and it came back at 4.125%. I was a little surprised and was hoping for 3.875 or so. With prime at 3.75%, am I being unrealistic for a 30 yr fixed rate?

For someone with really good credit, is there a standard "prime plus X percent" that most lenders use?

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Ricboff said:

Yup. And they will continue to rise . Lock mortgage rates , the bottom of cheap money has sailed - this president will be inflationary , sorry .

Janet , ....see ya in march ....hun....

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