Banking Disruptions - A Potential Silver Lining for Homebuyers

March 17, 2023

Banking Disruptions - A Potential Silver Lining for Homebuyers

Banking Disruptions - A Potential Silver Lining for Homebuyers

So much has happened these last two weeks in the banking sector. The collapse of two prominent banks has caused a state of panic, forcing the Federal government to move quickly to ease the minds of depositors by guaranteeing the security of their money.

Many predict that this news, though terribly scary, will pressure the Fed to slow down imminent rate hikes. Pausing rate hikes predictions have had an overall positive impact on bringing down mortgage rates.

Amidst the turmoil, we have acted swiftly to take advantage of this short window of opportunity to renegotiate interest rates for our clients who are currently under contract. Lower mortgage rates has also motivated many of our dormant buyer clients to get back into the home searching process.

While the stock market experiences huge volatility swings, we have noticed that real estate prices in LA and Orange County have remained relatively stable. Inventory remains low and good properties are still competitively overbidding and selling very quickly.

For more local real estate market insight, don’t hesitate to reach out to us. We are always here for you.

What We're Reading

Last week, the biggest news in the banking world was the collapse of Silicon Valley Bank, which was one of the nation's 16th largest bank. SVB buckled under pressure from the Federal Reserve's monetary policies that were intended to help combat inflation. SVB experienced a bank run by its depositors which led to its collapse and seizure by California bank regulators. In an effort to prevent additional banks from experiencing the same issues, the Fed may need to ease on additional rate increases. Mortgage rates have already started to decline (following 5 consecutive weeks of increases), this week dropping from 6.73% (Freddie Mac, average 30-year-fixed) down to 6.60%. Money's ‘A Whole New Level of Uncertainty’: How the Silicon Valley Bank Collapse Could Affect Mortgage Rates discusses where mortgage rates may be headed. 

Many of our buyers this week took advantage of much lower interest rates (most were Adjustable Rate Mortgages), some able to renegotiate rates that they had locked in the previous week.  If you would like some more insight into current rates, please feel free to reach out to either of us!

Read Our March Newsletter Here


Recent Blog Posts

Stay up to date on the latest real estate trends.

Real Estate Market Update - 08/08/2023

August 9, 2023

Mortgage rates have seen a slight increase as of July 27. The 30-year fixed-rate mortgage now stands at 6.81%, up from last week's 6.78%. Comparatively, this time last… Read more

The Market Momentum This Summer

July 10, 2023

We are delighted to bring you some exciting highlights on the current state of the Greater Los Angeles and Orange County housing markets. As we delve into the luxury a… Read more

A Strong Start in Summer Sales

June 9, 2023

The residential housing market in Los Angeles and Orange County has exhibited remarkable strength, marked by high demand and limited supply. This trend shows no signs … Read more

Gearing Up for the Start of Summer

May 18, 2023

The recent rate hikes by the Federal Reserve have had a noticeable impact on mortgage rates. As interest rates rise, mortgage rates tend to follow suit, making it more… Read more

Springing Ahead in the 2023 Real Estate Market

April 21, 2023

As we enter the Spring season of 2023, we wanted to provide you with an update on the current state of the real estate market. In recent months, we have seen a steady … Read more

Spring Forecast for L.A. Home Sales

April 4, 2023

Spring is here and is typically a busy time for our team to prepare our sellers to list their homes on the market. Simultaneously, we have been working diligently to f… Read more

Banking Disruptions - A Potential Silver Lining for Homebuyers

March 17, 2023

So much has happened these last two weeks in the banking sector. The collapse of two prominent banks has caused a state of panic, forcing the Federal government to mov… Read more

Getting Past the Rain

March 3, 2023

Torrential rains and mortgage rates hikes in Los Angeles and Orange County amidst the past several weeks didn’t stop many of our buyers and sellers from making big mov… Read more

The Housing Market Is Off to the Races

February 14, 2023

January was a hot month where we saw buyers jumping back into their home searches as mortgage rates took a brief yet significant nose dive compared to where rates were… Read more

Let's Talk

You’ve got questions and we can’t wait to answer them.