3/21/24 – Fed spoke, and what we should expect going forward The agents I work with who include me in an email when they make an offer have a much higher acceptance rate! I always respond to the email and let the listing agent know how fast we can close, even if we are offering a 30-day escrow! I also let them know the other highlights of the property, plus it gives me a reason to call the buyer, go over payments, and let them know how important it is to update their file so we can close quickly. The biggest holdups lately have been Insurance and HOAs. Both have been extremely slow, especially when dealing with the California Fair Plan for insurance. The Federal Reserve announced yesterday that they are leaving rates unchanged but still expect a .750% rate cut by the end of the year! The rate cut is excellent, but it will likely be built into the market before it happens, and everything else will be based on what the Fed will do in the future. Remember that when the Federal Reserve cuts interest rates, they are cutting short-term interest rates, and they are not cutting Mortgage interest rates! Now, does this wording from the Federal Reserve mean that rates will likely go down? Yes, eventually! It also implies inflation could jump into the picture when the rates get cut, which could push them the other way. Here is some food for thought on where the economy is going, and you can make your own decision. The delinquency rate on credit cards is at a 12-year high at 3.1% The delinquency rate on consumer loans is at a 12-year high at 2.62% The delinquency rate on Commercial loans is still really low at 1.43% The delinquency rate on residential mortgages is still low at 1.84% Delinquencies on all loans and leases to consumers are at a 13-year high, with over 54,000 delinquencies compared to 2019 when it was 42,000. I took out the covid years because so many didn’t have to pay! When talking with property managers and eviction attorneys, they say that they have more delinquencies and evictions now than they have seen in many years. Did I mention that Bankruptcy was up by 10.3% in 2023? Some issues could be coming up, but we are fighting inflation right now. Let’s hope that goes away, and we get better rates moving forward. The first of two signoffs is below: I am available all week if you need anything. Let me know 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. My direct line is 661-291-2222. When you text, text (661-714-6258) or email me at Mike@AugustaFinancial.com. But wait, there’s more! Condo / Townhome – issues we know of now. Properties can be financed with 10% down and are considered NON-WARRANTABLE: American Beauty Condos – The brown ones – Insurance – 50 Mil in coverage for 748 units is not nearly enough! American Beauty Village West: Reserves Bouquet Canyon Village – Insurance – On Fannie’s list! Bridgewater, Emeryville - On Fannie’s list! Brookside Walk – Insurance – Cabrini Villas, Burbank - On Fannie’s list! Canyon Oaks – Insurance On Fannie’s list! Casa Marabella – 13951 Sherman Way, Van Nuys -On Fannie’s list! Cornerstone – Insurance -On Fannie’s list! Encino Oaks – 5460 White Oak Ave – On Fannie’s list! Liberty Canyon HOA – 27409 Country Glen Road, Agoura Hills, CA- On Fannie’s list! Mariposa: Insurance On Fannie’s list! Penn Court HOA – 4201 Pennsylvania Ave La Crescenta On Fannie’s list! Rainbow Sierra Terrace – Underinsured and voting on Insurance in March! Scenic Hills – Insurance – On Fannie’s list! Shadow Ridge – Oak Park – Insurance -On Fannie’s list! Sherman Way Condos – 17900 Sherman Way Reseda – On Fannie’s list! Sierra Glen Condos – Insurance – On Fannie’s list! The District Community Association – 19533 Cardigan Dr, Northridge – On Fannie’s list! The Met at Warner Center, Woodland Hills - On Fannie’s list! Treana – Stevenson Ranch: On Fannie’s list! Valle Di Oro – On Fannie’s list! Walnut Gardens II – 7320 Lennox Ave Van Nuys CA – On Fannie’s list! Warner Center Condos – 5515 Canoga Ave, Woodland Hills, CA – On Fannie’s list! West Creek Condos and Townhomes: Insurance On Fannie’s List! Condo Watch List: This means I am not sure, but I will let you know. I can do it, but I doubt everyone can! American Beauty Gardens: We should know by Thursday (still fighting on this one)! Madisons: I know we can do them, but this one will be bad if it gets in the wrong hands! Please let me know if you hear anything new on condos or townhouses. Interest rates are a little better today, but it has been a rocky week or so before we got a good day! Rocky = bad! 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 high 5’s and low 6’s Conventional Loans up to $765,550.00 are in the low to mid 6’s High Balance Loans $765,550.00-$ 1,148,325.00 are in the mid to high 6’s Jumbo loans above $1,148,325 are in 6’s Bank statement loans - They are available with 10% down again! 6’s to 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 $793,000.00. 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 - typically 7.49% with limited fees – and they get you where you need to go! 0 down California Dream for all Equity Share – Registration April 3to April 29, 2024 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! The above are LA County Loan Limits. I am still available all week if you need anything. Let me know 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. My direct line is 661-291-2222. When you text, text (661-714-6258) or email me at Mike@AugustaFinancial.com. Have a great day and an even better tomorrow! Please call me when you have a client who needs to borrow! Mike Meena President | Loan Officer Click to Call or Text: (661) 714-6258 This entry has 0 replies Comments are closed.
