7/6/23 – Rates are up – Election year could save us!

You will hear some rumblings in the next few days about rates being at their highest levels since last October, and those rumblings are true. The other side of the coin is that properties are still getting bid up, and we still lack inventory which will likely continue to push prices even higher. Interest rates are always lower in Presidential Election years, and we almost have to hang our hat on that! Below are rates from the year prior and the current year of the last seven Presidential elections. I don’t know if this tells the whole story, but we can use this as another motivation. We will finish this year at a 6.75% average, and next year will show up around 5.75%, but that is yet to be seen.

2023 Averaging 6.44% so far

2019 Averaged 3.94% / 2020 Averaged 3.20%

2015 Averaged 3.85% / 2016 Averaged 3.65%

2011 Averaged 4.45% / 2012 Averaged 3.66%

2007 Averaged 6.34% / 2008 Averaged 6.14%

2003 Averaged 5.84% / 2004 Averaged 5.83%

1999 Averaged 7.44% / 2000 Averaged 8.05%

1995 Averaged 7.93% / 1996 Averaged 7.81%

Interest rates have been picking up steam and have moved higher over the past few sessions. Today is a bloodbath, but we are hoping for an end-of-day rally!

• 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 6’s.
• Conventional Loans up to $726,200.00 are in the high 6’s and low 7’s.
• High Balance Loans $726,201.00-$ 1,089,300.00 are in the 7’s
• Jumbo loans above $1,089,300 are in the 7’s
• Bank statement loans - They are available with 10% down again! 7’s and 8’s + depending on down and credit score.
• No income qualifier – 20% down with reserves! In the 9’s!
• 0 down loans are in the mid to high 6’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 8.250% with limited fees – But they get you where you need to go!
• 0 down California Dream for all Equity Share – Postponed until 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! Above are LA County Loan Limits.

I am 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 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!