Mortgage Rates Higher As Economy Continues To Grow
Interest rates have settled in the 4%–4.10% range on the 10-year Treasury, as the economy continues to show steady momentum. Housing starts met expectations with a consistent pace in single-family homes and a decline in multi-family, while the market absorbs the significant supply that recently came online. The consumer remains resilient as the cumulative effects of inflation continue to be a pain point. Nonetheless, the US stock market continues an upward trend, seemingly unaffected by talk of slower Fed rate cuts, rising oil prices, and ongoing geopolitical concerns. Mortgage applications have decreased as the base rate for 30-year conforming mortgages has climbed back into the mid-6% range, amidst the rise in interest rates.
In mature markets like Los Angeles, which depend on existing home sales, there has been a noticeable slowdown since the mid-summer uptick. The luxury market is facing adjustments, with many high-end properties sitting on the market. As interest rates rise, sellers may feel increased pressure to lower prices. Regardless, there is a significant number of buyers waiting for a price correction to offset the higher financing costs and secure a better deal. We anticipate many potential buyers are waiting for the outcome of the upcoming election, which is now less than three weeks away.
While the recent spike in rates may cause hesitation, Insignia Mortgage is here to guide you through these market changes. Our high-end, non-QM lending solutions have been curated to meet to your specific needs. Case in point, some of our team’s most recent loan successes include 2 week closings and 98% LTVs.
