THE MORTGAGE HANDCUFF

Back in the late 1970s, the term golden handcuffs was popularized as a way to explain why ambitious professionals were choosing to stay put rather than explore other employment options. The same is true today when it come to sellers and their mortgages.  ALMOST every single mortgage in the entire country is under 6% and most of them are under 4%.  This is causing the entire housing market to be handcuffed to these lower payments.  People would rather drive an extra 30 minutes or have a smaller house then pay hundreds of dollars more in payment. 

The Takeaway:  

I am only seeing two reasons that anyone is selling right now. There is a death in the family or moving out of state.  These high rates have kept many homeowners from listing their homes, driving up prices on what’s left in the market and creating unfavorable conditions for the buyers still on the hunt. The move-up buyer is pretty much gone, It's what’s putting the brakes on the market and inventory.

Homebuyers didn’t get any relief in mortgage rates this week, leaving them with little choice to either move forward with their purchase plans at elevated rates or stick to the sidelines.

The rate on the 30-year fixed mortgage edged higher to 6.71% from 6.67% the week prior, according to Freddie Mac. Rates have swayed between 6% and 7% since the start of the year, showing little signs of softening this summer.

We deeply appreciate the trust and partnership you have extended to us. As some of the best realtors in Los Feliz and Greater Los Angeles, the Riley Real Estate & Home Mortgage team is dedicated to assisting you in discovering your dream home in the beautiful neighborhood of Los Feliz and surrounding Los Angeles areas. We eagerly anticipate the opportunity to serve you in buying, selling, investing and mortgages and earn our reputation as a top realtor and make your real estate aspirations a reality.

Best,

Riley Schmidt