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As you can see in the chart of the 10-year note, the long term interest rates have stayed good since April. This is with the help of the Federal Reserve’s Quantitative Easing, purchasing billions of dollars of mortgage-backed securities and long term US notes/bonds, supporting the financial markets, while the economy is under the governmental response to COVID.
What’s not reflected in the chart is the mortgage secondary market’s reaction to mortgage payment forbearances and tightened underwriting guidelines. Things in that respect are getting better. Non-Qualified Mortgages and programs like Jumbo, cash-out refinances, investment loans, stated income loans, are slowly coming back and priced better. As time goes on, the economic consequences and employment/business viability unknowns will become less of an issue, rates in these programs will get better. Meanwhile, if you fit in the tighter Freddie Mac Fannie Mae standard owner-occupied box, rates are amazing. Under 3% with 0 points for a 30 year fixed is very doable.
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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