Listen up…or read up…if you are a California homeowner, you need to know that the median price of homes in Cali is up 34 percent! This is the highest recorded annual home appreciation rate since 2013.
What does this mean for you? If you are currently paying Mortgage Insurance as part of your monthly payment, we may be able to remove it and reduce your monthly payment based on the loan to value ratio for your home. Rates are still at amazing low levels, so reach out to me right away by replying to this email or calling/texting me at 818.307.6072 and we can take a look at your specific scenario.
As for what I’m watching this week…
Last Friday’s Jobs Report was not as encouraging as hoped, which helps mortgage rates stay low. However, we are seeing increasing wage inflation that we will want to keep an eye on. As we know inflation is the arch enemy of bonds, so as inflation pressure increases, it could put pressure on mortgage rates to rise.
The housing market remains as hot as our early summer weather and thankfully mortgage rates remain cool, continuing to hang out at low levels, despite inflation concerns. This week’s inflation headlines will take center stage and may cause movement in rates. However, the Fed continues to buy huge amounts of bonds helping mortgage rates to remain low.
Thursday we get a look at the Consumer Price Index (CPI), the only high impact economic report due out. Forecasters see moderation in May following April’s enormous acceleration headlined by a 0.8 percent monthly rise overall that was topped by a giant 0.9 percent spike for the core. The consensus estimates for May are a monthly 0.4 percent increase overall and a 0.4 percent increase for the core, both of which would still be significantly elevated and point to 3.4 percent annual rate.
Historically speaking, mortgage rates rarely remain below the CPI for long, so many market experts are thinking something’s got to give at some point. As we know rates can change at any time, so if you are considering a purchase or refinance, I’d recommend giving me a call to discuss your options and if now is the right time to lock in a great rate for you.