What a year for interest rates! The 10 year note, which we follow as it most correlates with 30 year fixed mortgage rates, was at 3.25% back in September 2018. A year later in September of this year it dropped all the way down to 1.44%! Now over the past two month’s rates have had broad swings, but now is pushing back to the 2% range. ½% pop over two months is a lot.
Several elements are affecting domestic rates, but we are in an international market for money. Forget the Federal Reserve. They can only affect short term rates. The US rates have been affected substantially by trade tariffs and Europe’s economic issues and negative interest rates. What’s been happening recently is a change in Europe’s interest rate philosophy, and the possibility of a (partial) China trade treaty. We’ll see what actually transpires, but investment capital is jumping out of bonds and pushing the equity markets higher.
As you can see in the chart, rates are still historically low, but up from the lows.
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 (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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