April 26, 2022

I hope you are doing well, and I hope you had a wonderful weekend.

We have a lot of fear in the market, and people question where prices will go from here. Many mixed messages reminded me of Heather when I was in the 8th grade. Over the past two days, we have seen interest rates come off their highs and begin to retreat a tad which is a good sign. One of the critical reasons for this is that people are worried about a global slowdown, and if that happens, we are talking about recession and lower interest rates. Everything is moving so fast that we could be in a recession before we know it, and that would be great for interest rates and bad for most of the economy.

Here are some of the headlines I saw over the past couple of days, and I think it is pretty telling:
New Home Sales decrease to 763,000 annual rate – This is down from last month 835,000.00. The highest level ever was 2005 at almost 1,400,000, and the lowest level was around 300,000 sales in 2011. The normal range seems to be 500K-800K annually.
Comments on February Case-Schiller and FHFA House Price increases: New Record Monthly Increase – 19.8% increase year over year in February!
Freddie Mac: Mortgage Serious Delinquency Rate Decreased in March – Down to .92% from .99%. The serious delinquency rate was 4.20% at the peak of the housing crisis in August 2020.
Housing and Demographics – This article spoke about favorable demographics for home buying. It will remain positive for most of the decade, although most of the increases in pricing are behind us. It speaks on population growth and the people between 25-39 who will be buying homes, which looks to be positive throughout the decade.
Nobody knows what will happen, but there are many options out there and when to buy is always a tough decision. If you are nervous about rates climbing, call us, and we can get you locked in for 90 days while you shop for a house. If you are worried that the market will crash, then buy something smaller that you think you can rent down the road, and if the market does correct, you can jump in and buy the big house you always wanted. Another option is to be a lifelong renter with no backup plan. LOL!

Interest rates are on another upswing. Inflation is still in the news, and rates will continue to rise until that goes away!
30-year Government Loans (FHA / VA) are in the mid to high 4’s
Conventional Loans up to $647,200.00 – High 4’s low 5’s
High Balance Loans $647,201.00-$ 970,800.00 are in the high 4’s to low 5’s +
Jumbo loans above $970,801 are in the high 4’s +. We can mid 5’s with as little as 10% down. We can do 1-year findings on these too!
5/1, 7/1, 10/1 Arms are in the low 4’s for over $647,201. Under that, don’t bother right now!
Bank statement loans – They are available with 10% down again! 6’s+ depending on down and credit score.
Stated income loans – I have one bank with 30% down, but everything else has to be perfect! Interest rates are in the low 5’s.
0 down loans are in the 5’s – 620 credit score min right now! Mid 5’s, for the most part, up to $670,000.00 Price.
0 down Jumbo to $975,000.00 – 680 credit score – call for a quote
Private Money lenders – hard Money Loans – 35% down!
No Ratio Loans 30% down
Debt Service Coverage loans with as little as 25% down
Bridge Loans – are typically 5.49 – 6.49% with limited fees – But they get you where you need to go!
Interest rates are subject to change without notice! Above are LA County Loan Limits.

I will be around all week if you have any questions or if someone is interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 xt. 2222. Please text me at 661-714-6258 or email me at Mike@AugustaFinancial.com. Have a great day and a better tomorrow! Please call me when you have a client that needs to borrow!