Interest Rates…Where are they going?

In the immediate sense, we are seeing very small shifts in interest rates. there was a lot of focus on The Fed hiking interest rates last year, which meant borrowing rates on credit cards, auto loans and personal loans went up. However, mortgage rates don't take direct cues from The Fed, rather they respond to economic outlook and inflation. It seems there is a handle on inflation so that points to a gradual decline in interest rates.

Rates hit their peak in November with some buyers in the Los Angeles area locking in at 8%. Since then, things have gone down. As of February 2024, you can expect to see something closer to 6.5%.

All lenders can and should give you an estimated monthly payment based on the pre-approval purchase price. Make sure you’re comfortable with it, if not we adjust our search to a lower purchase price based on what you’re comfortable with paying. 

Try to focus more on that monthly payment vs getting the best rate possible.

But keep in mind...the lower the rates, the more buyers in the market. So don't only look at interest rates when you are considering buying. talk to a lender and get a sense of what your monthly budget is. Buy when the time is right for you, not when the time is right for everyone else.