Welcome to my November newsletter, featuring personal insights, advice on mortgage rates, and economic news affecting our local housing market.
Jobs Report
November is poised to be an eventful month for the economy, and leading the charge was yesterday’s job numbers. The U.S. added just 12,000 jobs last month, according to data from the U.S. Jobs Report, but the low number was largely due to two hurricanes and labor strikes, which hurt hiring and the number of households who responded to the government survey that compiles the data. The less volatile indicator economists focus on is the unemployment rate, which held steady at 4.1%, as did wage growth. I was also pleasantly surprised that the stock market took the low job numbers in stride, likely because investors believe the data gives the Fed a stronger case for lowering interest rates when they meet on Thursday.
Mortgage Interest Rates
Pre-election volatility and moves in the European bond markets pushed U.S. mortgage rates slightly higher this week. I expect mortgage rates to be a bit unpredictable for the rest of the year as the bond markets absorb election results and new economic data. In moments of uncertainty, it pays off to work with an experienced mortgage broker. I constantly analyze market trends to identify optimal times for clients to lock in the lowest mortgage rates.
Here are the rates I have available on key mortgage loan products this week:
• 6.125% for 10YR jumbo ARMs up to $10M with income documentation, banking relationship will result in a lower rate.
• 6.500% on a 30YR fixed-rate loan up to $10M with income documentation, banking relationship will result in a lower rate.
• 7/1 ARMs at 5.925% up to $10M with income documentation, banking relationship will result in a lower rate.
• Rates for bank statement loans, depending on loan-to-value, are in the high 6’s, low 7’s with a strong credit score and a lower loan-to-value. These are priced aggressively and aren’t much higher than full documentation loans, and interest-only options are allowed. Please note – NO tax returns are required.
• Applicants with a strong depository private banking relationship and income documentation may qualify for lower rates than mentioned above.
• 15-year fixed-rate loan with rates in the mid 5’s. It’s an excellent opportunity to build up equity faster and repay the loan in 15 years.
The loan options presented here are just a glimpse into our extensive portfolio. We are confident we have the most competitive rates and unparalleled service to navigate any loan scenario. No loan is too big or too small for our team of experts.
Local Activity and Closed Transactions
I hear that buyer activity has moderated on pre-election jitters. There are home buyers who will sit the next few months out and cite fluctuating mortgage rates, a changing geopolitical climate, and the holiday season as good reasons to hit the pause button. On the other end of the spectrum are highly motivated buyers who will see an opportunity for more negotiating power in a market with less competition and strike now. Remember – rates, elections, and holidays are temporary conditions, while owning a home is a long game. I advise staying focused and not letting short-term distractions keep you out of the market.
Recent Closed Loans
New Home Purchase | West Hollywood | $3.45M
Foreign national, no U.S. credit
1 YR U.S. tax returns
75% LTV financing
30YR fixed, 10YR interest-only
6.99% interest rate | 7.19% APR
Home Refinance | Los Feliz | $3M
No tax returns
6.125% interest rate | 6.127% APR
30YR fixed, 10YR interest-only
New Home Purchase | West LA | $5.4M
80% LTV financing
Full income documentation
Private banking rate
10YR interest-only ARM
5.55% interest rate | 5.67% APR
New Home Purchase | Pacific Palisades | $3.7M
80% LTV financing
7/1 ARM
Full income documentation
5.25% interest rate | 5.40% APR
Key Economic Reports to Watch for This Month:
November 5 – U.S. Presidential Election
November 7 – Fed interest rate decision
November 19 – Building Permits, Housing Starts
November 21 – Existing Home Sales
As we approach the Thanksgiving holiday, I want to express my sincere gratitude for your continued trust and support. I’m genuinely thankful for the opportunity to help you achieve your homeownership goals.
In the meantime, if you have any questions about mortgage rates, refinancing, or buying a home, please don’t hesitate to reach out. I’m here to help you navigate the complexities of the housing market and find the best solution for your unique needs. Feel free to call me at 310-777-5401.
Sincerely,
Mark Cohen