Vivinavi : Los Angeles : (United States) Los Angeles

This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

Recent Mortgage Loan Situation] - Real Estate ・ Having trouble with your mortgage? Contact an Expert Who Knows the American Financial Industry ！ Sakura Capital Corporation

The goal of economic policy is [economic growth ・ controlling inflation ・ achieving full employment ・ stabilizing the balance of payments], and the U.S. economy is currently focused on controlling inflation.
The central bank of the United States is the Federal Reserve Bank （ FRB ） which determines the appropriate interest rate at a meeting of the Federal Open Market Committee and applies it as the policy rate.
This set interest rate has an immediate impact on short and long term interest rates in the US.
Although it takes some time for the policy rate to affect the real economy, changes in interest rates have a significant impact on our real lives, including interest rates on deposits, credit cards, real estate loans, and commercial loans.

As of September 27, 2022, the policy rate determined by the FOMC increased the Federal Fund Rate by 0.75% to 3.25%.
This rate is expected to rise to at least 4.125% over the remaining two FOMC meetings before the end of this year.
This sharp rise in interest rates has led some pundits to believe that the U.S. economy will inevitably enter a recession, with the current 2-year and 10-year Treasury rates at 4.27% and 3.956%, respectively, and long-term interest rates lower than short-term rates.

This rise in interest rates is a Government Sponsored Enterprise in the U.S., primarily 30-year long-term fixed rates for Fannie Mae and Freddie Mac, which purchase Mortgage Backed Securities. It has pushed the Mortgage Loan Rate above 6%.

This sharp rise in interest rates has halted the real estate price increases that have been occurring for the past several years, and has led to the phenomenon of real estate sales transactions.
If the U.S. economy enters a recession next year, we will see a situation where people who have been forced to purchase real estate at high interest rates and lose their jobs will lose Equity, meet with Foreclosure, and have to sell their real estate.
Although there are regional differences, real estate prices are not expected to rise for the next 1 ， 2 years.

Mortgage Loan Broker business has taken a turn for the worse and many companies are cutting jobs.

The lending criteria for real estate loans seems to have eased somewhat from the strict criteria used in the past with No Corona, but the criteria for loans still require that the monthly total of all debts be within 43% of the monthly gross income to meet the loan criteria. No change.
Especially for those who are self-employed, the average of two years' figures reported on Tax Returns, etc. will be taken, so even if you increase your salary just before applying for Loan, you may not be able to meet the requirement.

There is no point in refinancing a Loan when interest rates are rising rapidly from a temporary low, unless there is an urgent need to take out Equity. ？
This situation will continue until either the US economy enters a recession or the current Inflation Rate falls to the 2% level that the Fed is aiming for.

■ Sakura Capital Corporation
Mortgage loans are changing daily due to fluctuations in long-term interest rates.
Based on many years of experience, we know how much Loan can be obtained and at what interest rate and terms.
With our long experience in dealing with banks, we can give you a quick Yes, No, or Yes with conditions ！
Please feel free to contact us for more information.
CALL ： （ 310 ） 339-0737