The long-term interest rates have been fairly stable recently, and within a range since the beginning of April. Prior to that, the rates jumped substantially from January through March.
The big quandary now is will the jump in the inflation rate only be transitory, as the Federal Reserve believes, and how long will they artificially keep rates down by conducting their Quantitative Easing (buying $120B in treasuries and mortgage back securities a month)?
The post-COVID reopening has been strong, and there are supply chain issues what should back off in a few months.
The employment numbers are messy, as there are 8 million job openings, but 500,000 new unemployment claims. How many of the available jobs are not being filled because a fair percentage of the workforce doesn’t have the skill sets required for the better paying tech jobs… or the temporary bump in the unemployment compensation is so high, a percentage of the workforce doesn’t think it’s worth it to go back to work? What we do know is between robotics and Artificial Intelligence there will escalating pressure to displace unskilled, and many skilled workers.
Many lenders had staffed up to accommodate the volume serge last year. Now as the volume has backed off “some” lenders have gotten aggressive by lowering their rates (on some loan programs) to keep the loans coming in.
It’s a good time to be a mortgage broker to be aware of which lenders are aggressive and still executing. It’s never productive going with a lender with the lowest rates, if it won’t close, or their underwriting is unreasonably difficult.
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, 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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