Market pickup – Interest Rate Update

I’m feeling the buzz in the air, and it’s all about staying on top of our buyers! I’ve noticed a surge in motivation among buyers over the past couple of weeks, something we haven’t seen in a while. It’s a gentle reminder that in this industry, we need to keep pushing, following up, and rallying our teams to do the same. This is the game we play, and while others might tackle similar hustles for less money - like that persistent cold caller pitching a product or seeking a donation - our rewards can be significant if we stay committed.

Let’s be real: there are deals out there, and balancing safety with sanity can be a challenge. But stepping out of our comfort zones is where the magic happens! I'm not afraid to put in the work today or tomorrow because, frankly, the market between November and February has me a bit on edge. If I don’t hustle now, I risk a dry January - alcohol or not! With more inventory than we've seen in quite a few years, shifting our focus to buyers over sellers could be a game-changer for the rest of the year.

Last week, the Fed left interest rates unchanged, and I see that as a positive pause. They’re hinting at a 70% chance of a rate cut in September, which is already baked into the mortgage market. A bomb dropped on Friday with a revision to employment numbers, and rates moved down nicely. No Fed Rate cut, but rates are lower. Keep in mind that sometimes the Fed cuts rates and mortgage rates go higher, and other times they go lower, but it is all a balancing act of whether the Fed acted too soon or waited too long, or in Friday’s case, it was about the economy that was perceived to be not as strong!

Now on to business! Let’s dream a little - imagine a 0.25% rate cut in September, with promises of more in December and February. If each Fed cut lowers mortgage rates by 0.25%, how do we convince buyers to jump in September when rates might dip further later? It’s simpler now with no firm timeline - we can say rates could ease within the next year or two. When that happens, prices might stabilize or even rise, so the key is to pick your poison, do the groundwork, and stay committed, consistent, and focused!

So, let’s roll up our sleeves, have some fun with the hustle, and support our buyers. The market’s ripe, and with a little effort, we can turn this momentum into success.

Please let me know if you have any questions or if a client needs my guidance. I’m just a call, text, or email away.

📞 Cell: 661-714-6258

📞 Direct Line: 661-291-2222

📞 Office: 661-260-2970 ext. 2222

📧 Email: Mike@AugustaFinancial.com

But wait, there’s more…

Interest Rates

Interest rates had their best day in 4 years on Friday, and they are following up with a nice performance today. Rates are now better than they were on June 30th, and we are approaching our April 3rd lows! Don’t expect things to go down in a straight line, but a little momentum is never bad!

Loan Programs

• We do loans on Non-warrantable condos!
• We offer 12-day escrows for pre-approved buyers, including conventional FHA/Jumbo/Bridge loans.
• We provide loans in all 50 states, so call me with anything you need.
• Government loans (FHA/VA/USDA) are in the high 5’s and low 6’s.
• Conventional loans up to $806,500 are in the low to mid 6s.
• High-balance loans from $806,501 to $1,209,750 are also in the 6’s and 7’s.
• Jumbo loans above $1,209,750 are in the 6’s and 7’s.
• Bank statement loans are available with 10% down again, with larger down payments in the 6’s++.
• Profit and Loss Statement loans require 20% down - no bank statements needed, only a profit and loss statement!
• 0 down loans are available in the high 6s, with a minimum credit score of 620, up to $1,300,000.
• Private Money lenders offer Hard Money Loans with 35% down.
• No-Ratio Loans require a 30% down payment.
• DSCR (Debt Service Coverage Ratio) loans are available with as little as 15% down.
• Bridge Loans typically have an interest rate of 7.99% with limited fees, helping you get where you need to go!
• 3/2/1 Buydowns, 2/1 Buydowns, and 1/0 Buydowns are available at great starting rates!

Please note that interest rates are subject to change without notice, and the information above reflects LA County Loan Limits.

**Good News for Condos:**   

Canyon Village HOA – I am being told that they have fixed what was broken, and two loans are supposedly closing in there! This is not confirmed, but this is what we are being told!

**Bad News for Condos***

Apple Park – On Apple in Newhall! On the naughty list! Deferred maintenance – BALCONIES!

BIG NOTE –

We are starting to see condos with over 15% delinquency, indicating that people are struggling to pay all their bills. Stay tuned for more enlightening BS from me! LOL!

The full state of California’s naughty list has been added to: MikeMeena.com! See the link below:

https://mikemeena.com/non-warrantable-condos/

Let me know if you hear anything new about condos or townhouses.

I am available every day if you need anything.

📞 Cell: 661-714-6258

TEXT: 661-714-6258

📞 Office: 661-260-2970 ext. 2222

📞 Direct Line: 661-291-2222

📧 Email: Mike@AugustaFinancial.com

Have a great day and an even better tomorrow! Please call me when you have a client who needs to borrow!