Silicon Beach Buyer Edge News • 06 17 22
Happy Weekend!
The big conversation this week is all about interest rates. 😱 If you're planning on financing your next home purchase, I'm sure this news caught your attention.
Did you know? Fed funds rate increases do not equal mortgage rate increases? In fact, mortgage rates pulled back slightly this week.
How does that work? Mortgage lenders anticipate these kinds of hikes and usually have them baked in by the time the fed raises rates.
Yes, rates are much higher than they were at the beginning of the year. Should you buy now with the higher rates?
Home prices are currently expected to continue rising, so run your numbers or ask your lender to run the numbers for you, to measure any higher payment due to rates against higher expected prices.
Also, talk to your lender about alternative loan programs. Adjustable rate mortgages currently have lower rates. This type of loan program got a bad rap during the Great Recession, but rates don't actually adjust for 5, 7 or 10 years, and then they adjust by a contractually determined amount. When the government gets recession worries under control and rates come back to earth, you can refinance.
Also, I have one lender advising clients to re-qualify. It looks like some lenders are pulling back on fees and points, which can leave a higher rate making more sense.
Whatever your situation is right now, talk to a lender and start the qualification process to fully understand your options and ready yourself to take advantage of further rate dips as they present themselves.
Are you buying with cash or mostly cash? This is your moment! With so many buyers confused about interest rates, the buyer pool is smaller and you'll face less competition.
Need a lender recommendation? Text me on my personal cell phone and I'll send you names of terrific lenders who will take the time to help you understand all your options right now - 424.229.1634.
Rooting for you!!
Tracy
Local Trendlines
Below are the general trends for a couple of our Silicon Beach communities. Let us know how we can help you discover the trendline for your target community. Text the word TRENDLINE to 424.228.9969.
You'll hear us talk a lot about trendlines. Why do we make a big deal about them? If the trends favor sellers, it's one negotiation strategy for buyers and if the trends favor buyers, it's another. We regularly report on Venice, Westchester and Manhattan Beach. Read more on GetTheTrendline.com.
Want a trendline report for another neighborhood or property type? Text the word TRENDLINE to 424.228.9969 and we'll get you fixed up.
Real Estate Buyer News This Week
Here are links to a couple of news items we saw this week that might be interesting to you as a property buyer in Silicon Beach:
Some Fun Stuff
Here are a couple of links to lifestyle events and information to help you get to know our community better:
Have a great week!
Tracy & Team Silicon Beach Properties
P.S. Do you know somebody else who wants to buy real estate? Please forward this 💯 buyer-focused newsletter. ❤❤
P.P.S. Listings information presented below is customizable on request. Interested in sold listings, for example, but not the for the city shown? Text the word HEY to 424-228-9969 and we'll get you what you need.
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