Welcome to my April newsletter, bringing you fresh insights, mortgage rate updates, and key economic developments impacting the Los Angeles housing market.
Interest Rates
Over the past month, mortgage interest rates have experienced notable fluctuations driven by ongoing economic uncertainty and reactions to recent decisions by the Federal Reserve. While rates have somewhat stabilized, the next month will be choppy. However, I believe that overall, rates will trend downward.
During its March meeting, the Federal Reserve chose to maintain current benchmark interest rates in line with market expectations. Analysts predict the next potential rate cut could come as early as June, but Fed Chairman Jerome Powell commented yesterday that the agency remains in a “wait and see” stance.
Here’s a snapshot of current rates on our top loan products:
• 5.425% on 7YR jumbo ARMs up to $10M with verified income documentation and banking relationship.
• 5.625% on 10YR jumbo ARMs up to $10M with verified income documentation and banking relationship.
• Bank statement loan rates vary from the mid-6 % to low 7% range, depending on loan-to-value (LTV) ratios and creditworthiness.
• Mid – 5% rates are available to clients with substantial private banking deposits.
• Competitive private banking loans in the high 5% range, available up to $20M—please inquire for specifics.
Employment Reports
So far this month, we have data from two national reports — The U.S. Employment Situation Summary and The Job Openings and Labor Turnover Survey, or JOLTS report. Both pointed to a resilient job market despite economic headwinds:
• Job Growth: The U.S. economy added 228,000 jobs in March, surpassing expectations of 140,000 and marking a significant increase from February’s revised figure of 117,000. The average monthly job gain over the past 12 months was 158,000, highlighting March’s stronger-than-usual performance.
• Unemployment Rate: Holding steady at 4.2%
• Wage Growth: Year-over-year wage growth slowed to 3.8%, down from 4.1% a year ago
• Job Openings: 7.5 million, down slightly from the last reporting period
Local Activity & Recent Transactions
The Los Angeles housing market remains steady but is showing varied activity across different areas. The Westside continues to demonstrate strength with minimal price sensitivity, while other parts of LA, particularly the east side, are experiencing slower activity and increased inventory.
This week, I have seen several escrow cancellations as buyers grow cautious due to market volatility and tariff concerns. Additionally, the ULA tax has significantly impacted the high-end market, costing Los Angeles an estimated $25 million in tax revenue. Overall, while certain segments remain robust, caution is increasingly evident across the broader market.
Recent Closed Loans
New Home Purchase | Encino | $3.2M
75% LTV financing
Interest rate in mid 7’s
Foreign national borrower
No credit history or social security number
New Home Purchase | Santa Monica | $6.25M
80% LTV Financing
7YR ARM
5.850% interest rate | 5.920% APR
Full income documentation
New Home Purchase | Playa Vista | $2.17M
80% LTV Financing
7YR ARM Interest-Only
5.790% interest rate | 5.840% APR
Full income documentation
New Home Purchase | Laguna Beach | $2.3M
Doctor’s Loan
90% LTV Financing
7YR ARM
6.125% interest rate | 6.220% APR
Full income documentation
No PMI
21-day close
New Home Purchase | Palos Verdes Estates | $5.8M
80% LTV Financing
7YR ARM Interest-Only
5.79% interest rate | 5.84% APR
Full income documentation
Investment Property Loan | Sherman Oaks | $4.75M
10/1YR ARM to pay off existing construction loan
7.500% interest rate | 7.625% APR
No tax returns
DSCR qualified on rents
National Housing & Economic Reports to Monitor in April:
April 16 – Building Permits and Housing Starts
April 18 – Existing Home Sales Data
April 23 – New Home Sales Report
April 25 – Pending Home Sales Statistics
April 30 – Federal Reserve Policy Statement
I’m honored to share that this week, Scotsman Guide named me the #1 Mortgage Broker in the country. This recognition marks the 15th consecutive year I’ve been ranked in the top 1% of mortgage brokers nationwide. If you’re considering buying, refinancing, or investing, having the right financing strategy is crucial. Reach out directly to discuss how I can give you a competitive advantage in today’s market.
Sincerely,
Mark Cohen