From Zillow: Live, interactive mortgage rate charts

Whatever your favorite real estate website is, you've got to admit, it's amazing the kind of information that's now available for free.

The newest toy to catch my eye is Zillow's new interactive mortgage rate chart.  There are lots of rate charts out there, but these, as I understand it, are made up of real offers made by real lenders.

Zillow's Amanda Hoffman: "These charts are based on actual rates submitted by real borrowers and are updated with quotes submitted in real-time. Anyone can customize these charts based on length of time (day, week, month, or over the past three months), and filter by state, loan type, credit rating or down payment."

The chart pictured is a mockup, the numbers aren't real. I just ran the same scenario -- 30-year-fixed, credit rating from 680 to 850, down payment of 20% or higher, and here's what I got:

National rate: 6.35%
California rate: 6.42%

Thoughts? Comments? E-mail story tips to peter.viles@latimes.com.

Comments

[Laker]

Look at the quote volume to suggest about market trend. Right now, volume is down suggesting less people buying refinancing.
Also, look at 3 month curves. Interest rate are climbing fast almost as fast as gas prices....(well not really that fast)
However, i can see interest rates getting and passing 7% by the end of summer. By Christmas, 8% will be the common.
The reason??? Inflation...What will it do to home prices??? Ask shockg....

[tealeaf]

Laker, shockg never looks at leading indicators.

That would suggest capitulation to reality.

[Uncle Billy Zillows Mt. Pelerin]

oooweee nithe eye candy. pwetty gwaph. keepth our mindth off that yucky Obama McCain Johnson Richardson thtuff.

Does zillow still hold mortgage brokerage licenses in some states?

[arroyogrande]

I prefer bankrate.com's mortgage rate charts:

http://tinyurl.com/2ypxwp

Zillow's charts (as they stand now) only chart 3 loan types: 30 year fixed, 15 year fixed, and 5/1 ARM. Also, Zillow doesn't differentiate conforming vs. jumbo. If/when they have more options on what loan types to chart, it might be more useful. However, as it stands, I prefer bankrate.com's mortgage rate charts.
- arroyogrande

[shockg]

And what will the threat of rising rates do to demand? fence sitters will buy.

[Uncle Billy Zillows Mt. Pelerin]

Not if they ain't got no money they won't.

[homeownerandhappy]

Uncle Billy Zillows Mt. Pelerin

Not if they don't have any money they won't.

[Fred]

Shockg - there ARE NO MORE fence sitters. At least not enough to be statistically significant (i.e., make a dent in home sales and prices). Those that have the cash on hand (20% down) to purchase a home at these prices have done so already or will do so soon. Now that the exotic mortgages are history, so are all the buyers. Prices must come down for anyone to afford these things. Even the stupid people who would ignore all signs of a downward market and who would buy in a heartbeat if they could - they can't.

[Uncle Billy Pumps @ Mt. Pelerin]

See homeowner, that a funny. Wasn't it fun? Remember it and practice.

[homeownerandhappy]

Face it, you're not funny.

[Cal]

Buyers, fencesitters or otherwise, still have to deal with basic affordability. Rising rates reduce affordability and either incomes must rise or prices must come down to compensate.

The rates rising now are pretty stealthy to the the homebuyer market and because of that I think it would actually cause people to put off a purchase decision until rates come back down. IMHO, It is only well publicized events, like the fed meeting, where people hear for days on the news that interest rates (avg people don't really know the difference between all these interest rates) are going to go up or down does the average homebuyer use that to factor into their short term purchasing decision. The cost of money has already gone up for most purchases when you factor in risk based adjustments and add ons and PMI.

[Uncle Billy Pumps @ Mt. Pelerin]

Unhappy homeowner, to paraphrase Che Guevara (or was it Winston Churchill?): I am not funny. You are not nice. In the monring I will awake and be funny again while you will most certainly still be not nice. Now what was I saying about crawling back under the rock and strapping in? Git along, l'il buddy. If you decide to post again, please try to add something of value to the conversation, like this:

"Unzillowables" -- those quirks that homes have that are not factored into the Hal-like zillow valuations.

[E]

They need to change that digit on the Y axis from 5 to 6.

Yeah...the one above 5.90 and below 6.10

Morons.

Zillow is like that "love meter" at the old carnivals.

[amir]

Wow shockg, now you really got me. You're trying to rewrite the rules of economics.

When rates rise, the cost to take a mortgage is higher. When costs are higher people buy less. That means that RE prices will fall to compensate the rise in rates.

In general, when rates rise, asset prices fall.

Actually, the main explanation to the spectacular rise in asset prices - stocks and RE - in the last two decades has been the constant lowering of rates. That period is over now, maybe for a long time.

[Laker]

shockg, let's work together as you agree that rates will rise but you claim it would make more people buy...
Say i can pay $4000 per month, two months ago, i could get a 5.85% loan and with 20% down buy a $800,000 house fixed rate 30 year :
In 6 months, rates will be 7%. With the same $4,000 monthly and 20% down, I could "only" afford to buy a $740,000 house.

[Nelcisco]

Amanda Hoffman- understand this a classic case of bate and switch. Borrowers can be quoted anything if it means quoting them 6.625% at closing because I've seen it happening.

Who do these idiots think they are, rates are rate for everyone, they don't have magic loans.

your scenario is more right on Peter, and thats for borrowers closer to 700 or higher.

I'm finding with the credit crunch and people not being able to pay consumer debt they're becoming more and more subprime, and thats all over. Meaning they're getting tougher and tougher to qualify

[Nick]

Re Fred/shockg/amir comments:

There may not be very many fence sitters, but there are some (myself, for example). However, as amir said, economically when rates increase RE prices decline, and personally I'm waiting for substantial price decline rather than optimal rates, so this would only encourage me to wait longer.

On the other hand, I don't expect rates to rise, BB's hard talking notwithstanding. Real mortgage rates might increase as more people figure out the real inflation numbers, but generally the overall finance cost part of the RE market (total payment over the course of the loan) stays pretty flat independent of market changes, so it doesn't really concern me as a patient fence sitter. I want to let the foreclosures squeeze all the crappy loans through the REO process like a giant fiber-heavy laxative, and when the metaphorical sphincter of the real estate industry is begging for mercy, then look to buy.

That's my opinion, anyway.

[Ragnar]

Gross metaphor, Nick.

[tealeaf]

As was already said, higher rates brings lower prices.

I would much rather pay more in interest and have a lower asset price. That reduces my down payment (putting the balance to work elsewhere) + property tax, and potentially lifts my deduction with higher interest.

To qualify for most homes around LA, you likely are subject to AMT. That eliminates deductibility on property tax -- the lower the better.

When rates do drop, I can take advantage by refi or by selling.

Yup, the "threat of rising rates" is actually a catalyst to wait.