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Interest Rate Changes to Be Aware of in 2018

One of the most common questions we’re getting right now is how interest rates are affecting buyers and sellers in our market, so I’ve once again brought in our preferred lender Brandon Moss to shed some light on this topic.

Interest rates have gone up by roughly 0.5% since the start of 2018, and they’re still sitting in the mid-4% range for 30-year fixed mortgages. Stocks have also continued to hit all-time highs, and the 10-year yield nearly reached 3%, which is the highest point it’s been in four years.

According to Brandon, this means it’s a great time for buyers and sellers to get off the fence while affordability is at an all-time high. If you’re a seller, you can get top dollar now while buyers can still qualify for higher-priced homes and afford low interest rate payments.

There have been some notable changes to conforming loans that are advantageous to buyers. Their guidelines have become more flexible, and their limit was raised from $634,000 to $679,000. This helps buyers qualify for higher loan amounts with less of a down payment and, due to rising prices in LA County, increases their purchasing power.

“It’s a great time for buyers and sellers to get off the fence.”

If you’re a buyer, Fairway Mortgage is offering some new programs this year that you might be interested in, including programs designed for self-employed buyers who can’t show enough income to qualify, reduced documentation programs, and reduced down payment programs.

Though interest rates have gone up, the introduction of these new programs and the loosening of lending guidelines has opened up more doors for buyers and made now a great time to get a loan and buy a house.

“You’d be surprised what you might qualify for nowadays and how easy it might be to get a loan,” Brandon says.

If you have any lending questions for Brandon, you can call him at (818) 256-4330. If you have real estate questions for me or you’re thinking of buying or selling a home, feel free to give me a call or send me an email. I’d be happy to help you.

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