Interest Rates
What is an interest rate buy down?
When I was in the mortgage banking business years ago, I briefly worked in the joint venture department. The bank would partner with builders in housing tracts or condominiums. Rates had escalated, and the profit potential diminished. As an inc...
Rising Interest Rates and their impact on the Los Angeles Real Estate Market
Let's take a look at rising interest rates and their impact on the Los Angeles Real Estate Market. We will assume a $1,000,000 purchase price with a 20% down payment of $200,000. Interest Rate: 3% Mortgage Payment: $3,373 LA Coun...
Are Rising Interest Rates Impacting Los Angeles Real Estate?
The federal funds rate is the target interest rate set by the Federal Open Market Committee. This is the interest rate at which the Fed suggests commercial banks borrow and lend their excess reserves to each other overnight. Just over tw...
As affordability continues to dwindle for Los Angeles real estate buyers, will interest rate buy downs again be desired?
Prior to selling real estate I worked in mortgage banking. During the Carter years I was approving loans when interest rates spiked to 18%. New loans were few and far between. Buyers were assuming loans, or when the loan could not be assumed ...
