Ever since the presidential election in November, the broader equity markets have been very bullish with the Dow hitting nearly 20,000. Donald Trump is not in sync with the Fed’s “easy money” policies, and this philosophical difference, combined with recent positive domestic economic data, have led the Federal Reserve to increase the Federal Funds rate for the first time in a year (and only the second time since the financial crisis).
For those looking to purchase a home, the cost of mortgage financing has definitely been going up – with general mortgage rates increasing by over .5% in the past few weeks alone. For the super-jumbo buyers, rates have also gone up, but First Republic’s relationship rate discounts still enables new and existing clients to reduce the rate well below the market. For instance, today we locked in a $2M loan on a 10/1 I/O ARM at 3.25% with 0 points – which is well below all other lenders we checked with.
If you have any questions on possible mortgage options for a new home you might be considering, please contact Sean A. Barry, at (858) 720-6919. [email protected]