Market Update from our Preferred Lender

Please see below market update from December 1st from our preferred lender Scott Sealey from Mortgage Capital Partners:

Jobs numbers for November are at 178,000 which is right on target with predictions. This is another strong month of employment with unemployment at its lowest since 2007 below 4.6%.

The strong economic numbers for October/November economy reflected increased growth and with this strength it is generally a cause for escalation in rates. This increased confidence in the economy leads to increase in stock prices and a stronger dollar. Interest rates yields had the biggest increase since 2009 this month.

There is a 98%% chance of the Federal Reserve raising rates on December 14th after the November jobs number report.

The Trump effect has been in stocks especially in banks, defense, and infrastructure and Corporate business is counting on the anticipated Corporate taxes to be greatly reduced.

Oil surged this week -over $5 a barrel based on the OPEC agreement to cut production by 4.5%. This is the first agreement within OPEC in Eight years.

The combination of all the above lead to inflation, which in turn causes rates to increase and if inflation gets worse, the Feds will continue their march on raising rates.

With all this said, rates are still in the high 3’s, low 4’s dependent upon the day and the real estate market in Southern California is extremely strong. We may now be entering a time where clients start pursuing 7 and 10 year fixed rates instead of the more common 30 year fixed rates to keep their interest rates as low as possible.

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Contact Scott directly if you have any questions about real estate financing or your specific lending needs.  Scott Sealey:  (424) 299-4865/scott@scottsealey.com