BREAKING NEWS! Funny story, we recorded the video above yesterday and TODAY, the Fed announced an increase of 0.50% to the federal funds rate and mortgage rates came DOWN. How does that happen? Well, in summary, the Fed controls short term rates and long term rates (mortgages) are driven by inflation expectations. Since the Fed increased their rate this month by [only] 0.50% instead of 0.75% like last month, that means the Fed believes inflation is slowing down slightly and, therefore, the bond market predicts lower inflation in the future which translates into lower mortgage rates today! That's good for buyers AND sellers! Lower payments for buyers and higher prices for sellers! Expect the real estate market to pick up some steam for the time being unless mortgage rates decide higher inflation is on the horizon again.
Buyers: Did you know that you can borrow up to $1,089,000 in LA County with only 3% down for a single family home and still get conventional loan terms (the best rates available)? That means you can buy a $1.1M house with only $30K out of pocket! Wild, right? If you have questions, let us know and we will be happy to connect you with an honest lender to answer all your questions!
Sellers: If you are thinking about selling in 2023, we would love to help you put together a plan for preparing your home to stand out and get top dollar! Beat the rush - inventory is typically lowest in January and gradually increases through August. Please reach out for a personalized market analysis of your home and learn why our sellers make more with our system!
