The last couple of weeks of June has resulted in better fixed mortgage rates. There’s been a lot of interest rate and economic number volatility. We’re not close to the 3% 30 year fixed mortgage rates we saw the beginning of 2022, but well off the high of 6.2% a couple weeks ago now at 5.5%. The 10 year note touched 3.5% a few weeks ago. Now it’s at 2.8%, also a large drop.
There are a lot of moving elements affecting the rates. The financial market is realizing the late, and aggressive Fed moves are resulting in a fast slowing of the economy, potentially resulting in a recession. We’re still dealing with supply chain issues, Russia/Ukraine war, and such that the Fed doesn’t have control over, but the consumer spending and discretionary income of the general population has dropped. The consumer and business spending cost is the only thing the Fed has control over. The initial “reopening” surge may be easing. Some of the commodity market (oil, copper, wheat, etc) has shown large drops in pricing over the past couple of weeks.
The Fed meets again at the end of July and is expected to increase the Fed Funds Rate by another .75%. Will the economy slowing alter their approach? We’ll see, in the meanwhile, the lower mortgage rates are welcome to the housing market.
If you are in the Los Angeles area, and have any questions or real estate sales or financing needs, feel free in contacting me
Ron Henderson GRI, SRES, SFR, RECS, CIAS
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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