The mortgage rates have been in a good stable range for a few months. The Federal Reserve rate drops last year and continuing their purchase of $60 billion per month of treasuries, have propped up the economy, while the uncertainty of the China trade issues were up in the air. Now with the signing of the Phase 1 of the China Trade Deal, we’ll see what transpires. We’re still a full percent lower in rates than the end of 2018, so we can expect the housing market to be solid going into 2020.
Let’s keep an eye on the following that can affect the rates in the near future…
Inflation rates and unemployment levels are very low. They are critical to how the Federal Reserve and bond market will react.
The stock market is presently at historic highs. If the market sells off due to a shock or a correction, the bond market generally sees a flight to safety (lowers rates).
Political anxieties based on the impeachment trial, or the election can add instability to the financial markets.
For now the technicals of the rates have been solid, bouncing around the Fibonacci level of 1.79% (10 year note).
Note: With the higher property values and equity positions, cash out refinances are worth evaluating.
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
Leave a Reply