The financial markets have been chaotic lately. The treasuries and mortgage backed securities have had huge swings within hours of a tweet from the White House. Tariffs and the possibility of inflation can push rates higher… meanwhile Inflation eased in March, with the headline Consumer Price Index (CPI) dropping to 2.4% year-over-year from 2.8% in February. This progress was driven in part by falling gasoline prices. Core CPI, which excludes volatile food and energy costs, also declined to 2.8% year-over-year from 3.1% the prior month.
As markets digested implications of several fiscal policy changes over the past 2 months, a predictable trading pattern emerged. Stocks and interest rates moved lower together. This isn’t always the way things work, but it is typical during moments where investors are rapidly shedding risk and seeking safer havens.
International currency and bond markets made investing in US bonds more risky because of the erratic and constantly changing policies being bantered. Last week we had over a ½% swing in the 30 year mortgage rate.
Over the past few days markets stabilized (to some degree) and a good, old-fashioned flight to safety helped the bond market realize some decent gains. At this point, bonds are right back in line with the flat, narrow range seen between late February and late March.
Although it’s far too soon to declare victory against that volatility, we’re now seeing the bond market (the thing that dictates interest rate movement) act a bit more like its normal self… At least till the next tweet…
If you are in the Los Angeles area, and have any questions or real estate sales or financing needs, feel free to contact me
Ron Henderson GRI, SRES, SFR, RECS, CIAS, CREN, GREEN
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – Southland Regional Association of Realtors (2025)
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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