Federal Reserve just raised
interest rates 1/4 point, yes,
up against a real estate loan officer
Mark Goldman here to talk about
how this affects mortgage rates.
Good morning, mark.
An important discussion to have here.
Yeah, everybody cares.
Good morning, guys.
Good morning. Joining us.
So we want to talk about how the Fed rate
now increase affects mortgage r.
So many people,
good question to borrow money.
The Fed rate that was raised tomorrow,
I call it a 12 hour interest ra.
So it it doesn't really have a g
impact on 30 year fixed rate loans, OK.
It will change people's interest rate if
they have a home equity line of credit
that's tied to prime rate because when
the Fed raises its overnight ra,
the prime rate goes exactly with
that typically and most home eqy
lines are tied to prime rate.
So for second mortgages, yes,
it's going to raise the rate actually.
This was typical yesterday when
the Fed announced their rate hi,
we actually got price improvemes
ohh on 30 year. Why?
Because the market anticipated
the quarter point.
So that was already cooked intoe
rates and when the Fed actually did it,
everybody had a sigh of relief.
Oh, it wasn't worse.
You know, they could raise 1/2 a point.
So.
So rates actually backed off and
there's a little bit of follow
through on that this morning.
The mortgage-backed bonds are ae
even a little bit better this
morning than yesterday.
OK. So for folks that are at home right now.
Considering buying a house,
it is now a good time to buy in San Diego.
Is that an easy question to ans?
In my opinion,
yes, and I will tell you why.
What's been going on in the housing market,
prices have been depressed.
But what's pushing prices down,
high interest rates are our
job markets quite strong.
Household incomes are going up.
Supply is quite limited,
demand is super strong.
There's very limited inventory.
So those are all factors
that push prices of homes up.
So what's been pushing prices d?
Higher interest rate,
a higher cost to own the house.
What will happen if rates go do?
Prices are going to come back u.
So you?
You hear the expression,
you know, love the home date,
the interest rate, you know,
because if for people who buy n,
I do expect will return to tren.
And you know,
a lot of neighborhoods if if you
look at Zillow or if you get a e
bot report or something like th,
a lot of neighborhoods are showg
kind of a dip in the price of
homes in your neighborhood.
But we're already seeing recovey
in a lot of neighborhoods.
So there's a trend line,
but you know, you get the dip.
Then the house gets back on that trend
line. So I think, I think Mark, it's,
it's we've been looking for yea,
right to try to buy a home,
people that have decent jobs or
making decent salaries, working hard.
Are you sorry you waited so hard didn't you?
But are you sorry you wait, where is,
I mean you see what people bougt
these homes for five years ago, right.
And now who, right. So it's wil.
It seems impossible. It's
you know we see all the time pee
who are buying their first home,
for example, and they are just
stretching to get into that.
But when you talk to them 125
years later you know they're,
they're really and they
don't remember this stress
this struggle and stress. OK ye.
So keep looking to see what might work for
you and there are other loan
options available not just
through to your fixed rate.
What are some of the advantagesd
disadvantages for people considering well
you know it it's kind of odd rit
now typically the lowest interest rate
loan most people are going to gt
is going to be a fixed 30 year .
A lot of times the loans there,
there are loans that are intere.
Only there are loans that have
adjustable rates or they might ,
they're called intermediate adjustable rates.
They're fixed for the 1st 357
or 10 years of of the loan,
but they're 30 year loans.
But when you're done,
there's adjustments to pricing d
on credit scores, loan to value,
type of property and so forth.
And when you do those adjustmens
usually you land on a 30 year fixed rate.
OK. Alright. Mark Goldman,
thank you for joining us
this time should be here.
Good to get your insight.