This question comes up often. Sometimes, it feels like we’re going for a ride or… are we just along for the ride. Because, we don’t have any control over what the federal reserve is doing with interest rates and ‘the power’s that be’ are trying to get inflation to 2%…. and we Might be there!
There will likely be one more rate hike by the Federal Reserve. Likely, it is already built into the mortgage rates. Mortgage rates closely follow the 10-year Treasury Note. A week ago, the 10-year note was at 4.35%. Today (8-29-2023) the 10-year Treasury note is at 4.20%. Also, about a week ago, the 30 year fixed rate on an FHA backed loan was at (approx.) 6.875% and today the 30 year fixed rate on an FHA backed loan is (approx.) 6.625%. Not a big drop but you can see that there is some correlation. Mortgage rates closely follow the 10-year Treasury Note… closely… not lock step. Homes are still selling. It looks like interest rate will hold steady for the near term. If we see the housing inventory rise too much, the ‘the power’s that be’ will (hopefully) lower the rates se we don’t go into a recession.
On a side note (if you don’t already know, you’ll get a kick out of this) the maximum loan amount on an FHA insured loan in LA County is $1,089,300.00.
Community Spirit: (in regards to the accompanying flyer).
National Neighborhood Day is September 28th. I can remember playing with the neighborhood kids in the street until ‘the street lights came on’… that was our signal that it was time to come home. These days, it’s a little different. But, with a little effort and consciousness, we can get to know our neighbors a little better, be a closer knit group and help each other. Check out these great ideas for connecting with and staying connected with your neighbors.
If you know of anyone thinking of buying or selling give me a call with their contact info and I’ll/we’ll take excellent care of them. We’re here to help! Ask us about the 10 ways we have to help you save time and money!
Our Motto: When you take care of your clients, everything else takes care of itself.
Have a GREAT DAY and if you have any questions feel free to call me, I’m always here for you.
Sincerely, Ron Hier