As expected the mortgage interest rates have been going up for several months. As they say, don’t fight the Fed. In reality, the Federal Reserve has been hitting the interest rates on two levels. Moving the Fed Funds Rate a 1/4% every few months, increasing the short term rates… and slowly liquidating the balance sheet of accumulated bonds and mortgage backed securities during the Quantitative Easing.
The interest rates we’ve seen over the past decade has been artificially derived. We are now slowly getting into normal interest rates.
From a technical standpoint, for many months we’ve been targeting 3.0% on the 10 year note (mortgages closely track the movement of 10 year notes). It just hit that target yesterday. We haven’t seen that rate since January 2014. Now we’ll see if the 3.0% level acts as a ceiling, and we’ll see the rates back off a little or stabilize…
Keep you eye on the 10 year note, because if it goes through 3.04% and stays above the level for a couple days, all bets are off and the rates will be going higher. Inflation reports next week will be critical. Higher inflation will spook the band market. The next resistance level is another 1/2% higher.
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me.
Ron Henderson GRI, RECS, CIAS
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals
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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