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Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

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Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#61

Post by justincormack »

oliwarner wrote: post #55
cammikebrown wrote: post #2

Seems like the bubble burst is going to be more sudden than we thought. 30 year mortgages are suddenly at nearly 5.5-6%, listings are sitting on the market for longer, and multiple cities are cracking down on Airbnb.

Whole-term-fixed rates are pretty uncommon in Europe. Fixes of 2, 5 sometimes 10 years are products most providers offer, but as the term increases, the rate shoots up, to offset rate uncertainty. My question is: why would you fix for 30yr when you know you're paying multiple points to offset market uncertainty? Remortgaging every couple of years takes a bit of time, and shopping around, but is much cheaper.

If you can afford it then you are likely to continue vs in Europe when rates go up people default. So it should improve default rates. In the US you can refinance when rates go down for free while European fixed rated have early repayment penalties usually. So its a free option. So it has a number of advantages even if rates can be high if long term rates are high.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#62

Post by oblio »

cammikebrown wrote: post #15
theferalrobot wrote: post #6

Earlier quoted context omitted.

I’m seeing 5.0% most places (see ally bank). Still higher than its been but not pushing 6% by any stretch.

It's pushing 6% if you have worse credit (700-750). But don't worry about that, NINJA loans are back: https://i.redd.it/wnzuveooo5w81.jpg

That looks like a crash waiting to happen.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#63

Post by jason-phillips »

apexalpha wrote: post #52
smcl wrote: post #43

Earlier quoted context omitted.

Fixed for the entire duration of the mortgage, and at the rate the commenter mentioned?

Mine is fixed for 20 on a 30 year mortgage but you can always choose between variable, 10 year fixed, 20 year or 30 year. Mortgages are (almost) always 30 years duration. I don't know what country in Europe you can't get fixed rates but it's not the Netherlands, that I know for sure. (Also there really isn't a 'Europe' for these things, every country is different)

> Mine is fixed for 20 on a 30 year mortgage

In the United States we don't call that "fixed". We call that an adjustable rate mortgage. For example, my mortgage is fixed at 3% for its entire 30 year term and can properly be called "fixed".

People in the United States are leery of ARMs after what happened during the mortgage crisis in 2006-2011 so proper labeling is more important.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#64

Post by [deleted] »

oliwarner wrote: post #55
cammikebrown wrote: post #2

Seems like the bubble burst is going to be more sudden than we thought. 30 year mortgages are suddenly at nearly 5.5-6%, listings are sitting on the market for longer, and multiple cities are cracking down on Airbnb.

Whole-term-fixed rates are pretty uncommon in Europe. Fixes of 2, 5 sometimes 10 years are products most providers offer, but as the term increases, the rate shoots up, to offset rate uncertainty. My question is: why would you fix for 30yr when you know you're paying multiple points to offset market uncertainty? Remortgaging every couple of years takes a bit of time, and shopping around, but is much cheaper.

[deleted]

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#65

Post by 2ion »

oliwarner wrote: post #49
apexalpha wrote: post #33

Earlier quoted context omitted.

That's really high compared to Europe! I just bought a new house with 2% on the interest-only part and 1.6% on the annuity part! In the month after rates grew by about 0.5% though. Seems like we hit the bottom and are climbing very slowly.

And compared to a couple of years ago, that's really expensive. The mortgage we took out two years ago (2 year fix, ~60% LTV) had a introductory rate of 1.2%. That falls back to 3.something variable in September. We'll probably look for another fixed but current 2yr fixed rates seem to be around 2.3% (plus a £1k application). That's an uncomfortable increase on a big loan. What's interesting is the rates on bigger lo…

That's really interesting. Is it normal in UK (thinking £) to get such an extremely short (introductory) loan and then refinance every few years? In Germany, most people take a 10y fixed rate at least to reduce such risk.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#66

Post by apexalpha »

jason-phillips wrote: post #63
apexalpha wrote: post #52

Earlier quoted context omitted.

Mine is fixed for 20 on a 30 year mortgage but you can always choose between variable, 10 year fixed, 20 year or 30 year. Mortgages are (almost) always 30 years duration. I don't know what country in Europe you can't get fixed rates but it's not the Netherlands, that I know for sure. (Also there really isn't a 'Europe' for these things, every country is different)

> Mine is fixed for 20 on a 30 year mortgage In the United States we don't call that "fixed". We call that an adjustable rate mortgage. For example, my mortgage is fixed at 3% for its entire 30 year term and can properly be called "fixed". People in the United States are leery of ARMs after what happened during the mortgage crisis in 2006-2011 so proper labeling is more important.

Ah, right.

I could also have picked 30 years for a 'real' fixed mortgage. It just gets a bit more expensive. But it's definitely possible to get 30 year fixed if you really want to, every bank offers it.

In the Netherlands an 'adjustable rate mortgage' means monthly, quarterly or yearly variable rates.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#67

Post by hamter »

xbmcuser wrote: post #45
jbay808 wrote: post #28

Earlier quoted context omitted.

It's not only tech! The labour market is very tight across North America in general.

Labour market is tight because after covid people are not willing to work at many jobs at the peanuts they were paid for before nor are they willing to change the work life balance they would need to sacrifice for these jobs.

there's that plus i think a bunch of boomers (like my parents) took it as a sign to retire.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#68

Post by raesene9 »

alexb_ wrote: post #4
cammikebrown wrote: post #2

Seems like the bubble burst is going to be more sudden than we thought. 30 year mortgages are suddenly at nearly 5.5-6%, listings are sitting on the market for longer, and multiple cities are cracking down on Airbnb.

"Cracking down on Airbnb"... you say this as if Airbnb is a horrible thing or something LOL

AirBnB (and similar) has been really bad for the property market in the Scottish Highlands. Lots of people buying up scarce housing stock to use for holiday lets, means that locals who work in the area (where a lot of local employers can't pay stellar rates) can't afford to buy.

Combine that with the fact that these areas are often in National Parks which have restrictions on new-builds and you'll inevitably reduce the amount of people actually living in the area.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#69

Post by hamter »

_v7gu wrote: post #53
nikanj wrote: post #32

Earlier quoted context omitted.

If you plot Canadian housing supply vs Canadian city population growth, you get another perspective. Houses are incredibly expensive, because there aren't enough of them

No, no. It's the foreigners' fault. Hypocrisy and xenophobia will fix everything without having to create actually livable cities where people aren't slaves to cars.

don't worry we're happy to do both transit and xenophobia in canada (unless the next administration cancels the transit plans) (they will)

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#70

Post by shawabawa3 »

runeks wrote: post #59
oliwarner wrote: post #55

Earlier quoted context omitted.

Whole-term-fixed rates are pretty uncommon in Europe. Fixes of 2, 5 sometimes 10 years are products most providers offer, but as the term increases, the rate shoots up, to offset rate uncertainty. My question is: why would you fix for 30yr when you know you're paying multiple points to offset market uncertainty? Remortgaging every couple of years takes a bit of time, and shopping around, but is much cheaper.

> My question is: why would you fix for 30yr when you know you're paying multiple points to offset market uncertainty? To fix your monthly payment for the next 30 years. Furthermore, with a fixed rate mortgage you can benefit from interest rate volatility since you can always buy back the debt at par. In practice this means you can: 1. Take out a fixed rate loan for $n at x% 2. If the rate doubles (to 2x%) you can re…

Can you explain point 2?

Why do you refinance if rates go up? Surely the point is that if rates go up you've locked in a better rate

How does half your debt disappear if rates go up?

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