Mike’s Morning Mortgage Update – Rates- Market and the Future

What we are seeing right now is not just a rate issue, and that is the first thing agents need to understand when talking to their clients. Yes, rates have moved quickly, but what is really happening is a layering of pressure. Buyers are facing higher rates, rising Insurance costs, higher taxes, and a general sense of economic uncertainty all at once. That combination is what is putting them on pause.

Your clients are not necessarily saying no. They are saying not yet. They are trying to make sense of a market that feels unstable, and as an agent, your role is not to push them but to help them understand what is happening beneath the surface.

When rates move this fast, it creates hesitation across the board. That hesitation reduces competition, and that is where opportunity starts to form. This is the part many buyers are missing. They are waiting for a perfect scenario in which rates drop, and prices stay flat, but historically, that is not how markets behave. When rates come down, demand tends to come back quickly, along with competition, bidding wars, and upward pressure on prices. 

Right now, we may be entering a window where fear is creating a slight dip or a leveling off in certain markets. That does not mean prices are crashing, but it does mean your buyers may have more negotiating power today than they will if and when confidence returns.

A big part of the conversation also needs to be around inflation and what is driving it. The current inflation environment is heavily influenced by energy and global conflict. This is not purely a housing-driven issue. If the war stabilizes or ends, there is a strong possibility that a portion of this inflation proves to be temporary. If that happens, rates are likely to follow inflation lower. On the other hand, if the economy continues to weaken, rates could come down even faster pushing prices higher.

This is where you can help your clients shift their thinking. The question is not whether rates will eventually come down. The question is what happens when they do. If your buyer waits one or two years in hopes of lower rates, they may find themselves in a more competitive market with higher prices and fewer opportunities to negotiate. 

Instead of trying to time the market perfectly, the focus should be on whether the purchase makes sense today. If the numbers work, if the home fits their needs, and if they plan to hold the property, then buying in a moment of uncertainty is an advantage.

One of the biggest tools you have right now is helping remove the fear around rates. That is exactly why we offer a free refinance for life for clients with loan amounts over four hundred twenty thousand and credit scores of seven hundred twenty or higher. This is not about pushing someone into a deal that does not make sense. It is about giving them a clear path forward. If rates improve, they are not stuck. They can refinance without the typical costs and take advantage of a better market.

Your job in this market is not to convince clients to buy. It is to help them understand the tradeoffs. Waiting may feel safer, but it is not risk-free. Acting now may feel uncomfortable, but it can create opportunity.

At the end of the day, markets move through cycles, and uncertainty is part of that process. Once the bigger questions around inflation and global stability start to settle, the market will adjust quickly. The agents who win in this environment are those who can clearly explain what is happening and guide their clients through it with confidence, rather than reacting to the noise.

Please let me know if you have any questions or if you or any of your clients, friends, or family members need my guidance. I’m just a call, text, or email away.

📞 Direct Line: 661-291-2222 – Text OK

📞 Cell: 661-714-6258 – Text OK

📞 Office: 661-260-2970 ext. 2222 – Text OK

📧 Email: Mike@AugustaFinancial.com 

But wait, there’s more…

Interest Rates

Not better and not the same so that means they are worse! Still better than a year ago, but I am also a year older, so that’s not saying much!  

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 5s.
• Conventional loans up to $832,750 are in the low to mid 6’s.
• High-balance loans from $832,751 to $1,249,125 are also in the mid to high 6s.
• Jumbo loans above $1,249,125 are in the mid to high 6’s.
• ARMS in the 5’s and 6’s
• Bank statement loans are available again with 10% down, 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 $1,325,000.
• 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:**   

Nada today!  

**Bad News for Condos***     

Seco Villas – YUP! Insurance issues, and we just closed one a month or so ago, and all was good!   

CONDO HELP!!!

If you have a listing or a buyer interested in a specific condo and are unsure whether it is warrantable or Non-warrantable, please call me, and we can look up Fannie’s list in real-time. We don’t know when something has changed, and it would be impossible to track everything day by day, but we don’t mind looking up a few items each day.  

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.    

📞 Direct Line: 661-291-2222 – Text OK

📞 Cell: 661-714-6258 – Text OK

📞 Office: 661-260-2970 ext. 2222 – Text OK

📧 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!

Sincerely,