11/14/2023 – CPI drops and rates move down nicely Interest rates dropped by about .250% today, and things are looking better. Most conventional loans have a 7 in front of them, but you can buy rates down into the 6’s. FHA rates are in the low 6s, and we have been back to the best since mid-September. The CPI number came in slightly lower than expected, and things look good today. We need about 50 more good days to return to the 4s and 5s! This should start to move the market and remember to tell your clients that this is a great opportunity to get in NOW as we have had a nice turn of events and it will take sellers some time to adjust to lower rates, which means they can get a discount! Interest rates peaked on October 15th, about 1% higher than we are today! A potential buyer who did not want to buy at that point due to interest rates can now save about $70 a month for every $100K borrowed. So on an $800,000.00 loan they are now saving $560 per month! But wait, there is more! Your buyers’ purchasing power increased by 8.5% in the last 30 days! Yes, someone unhappy with a $700K house can make the same payment on a $760K home today. $800K gets you to $868K, and $900K gets you to $976K, and so on and so on and so on! What’s next? Please pick up the phone and call your potential buyers who haven’t wanted to buy in the past 60 days due to high interest rates, and give them an early Christmas gift. Lower rates should also bring some energy back to your sellers, and you can sit a couple of weeks and avoid a price reduction. That’s all I have for you today, I know that Thanksgiving is next week, and you have to prepare for 12 people to drink and eat at your house. Right after that, the kids and Grandkids will expect gifts for Christmas or Chanukah, and it sure would be nice to have a couple more escrows to pay those credit cards with! Your other friends and I at Augusta Financial can help close them fast! Condo / Townhome issues we know of now: American Beauty Village – Insurance Scenic Hills – Insurance Mariposa – Litigation – Agreed upon, but not yet recorded Bouquet Canyon Village – Insurance Madison – Litigation West Creek / West Hills – Insurance Cornerstone – Insurance Canyon Oaks – Insurance Brookside Walk – Insurance – NEW as of last week Shadow Ridge – Oak Park – Insurance Cabrini Villas – Burbank – Insurance Sierra Glen Condos – Insurance Please let me know if you hear anything new on condos or townhouses. We will see premiums increasing, likely increasing the HOA Fees soon! Interest rates are better today! All I want for Thanksgiving is better interest rates! Wall Street loves lower rates too! 12-day escrows if your buyer is pre-approved - Conventional / FHA / Jumbo / Bridge We do loans in all states, so call me with anything you need. Government Loans (FHA / VA) are in the low to mid 6’s Conventional Loans up to $726,200.00 are in the low to mid 7’s High Balance Loans $726,201.00-$ 1,089,300.00 are in the high 7’s and low 8’s Jumbo loans above $1,089,300 are in the 7’s and 8’s Bank statement loans - They are available with 10% down again! 8’s and 9’s depending on down and credit score. No income qualifier – 40% down with reserves! In the 8’s! 0 down loans are in the high 7’s – 660 credit score min right now, up to $740,000.00. 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 8.49% with limited fees – But they get you where you need to go! 0 down California Dream for all Equity Share – Postponed until February??? 3/2/1 Buydowns 2/1 Buydowns and 1/0 Buydowns are available at great start rates! Interest rates are subject to change without notice! Above are LA County Loan Limits. I am available 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 ext. 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! Mike Meena President | Loan Officer Click to Call or Text: (661) 714-6258 This entry has 0 replies Comments are closed.