Last night we got to a verbal agreement with the sellers of our dream home. I'm still in shock.
It was such a roller coaster evening. We just got home from doing another walk through, and I thought for sure the sellers were going to walk away from our offer. I was down in the dumps. Then our mortgage broker called. We were on the phone with our mortgage broker who alerted us to the craziness that happened in the markets / 30 year rates -- and then our agent (mid mortgage broker call) finally called with their offer and we accepted it. Hopefully fear of raising rates didn't cloud our vision. I really don't think it did. The house is really a dream home. I keep saying that -- and someday you will all believe me. :-)
Regarding rates... Apparently the 10-year Treasury yields spiked because of massive debt being sold off, and that sent the 30 year mortgage rates up.  Here's a slightly better explanation of the yield issue and some alluding to the future. . There is a potential for the rates to inch back down. We'll see. In any event, for now, we locked in 5.125% with no points. (APR 5.1719) We're pretty sure there isn't a better deal in town that can be sure to close in time. *knock on wood*
Really... it is a dream house. We would never be able (both mentally and financially) to afford a remodel like this. We're just to frugal. However, when the end result is presented in a format we can afford... it is just too beautiful to resist.