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The Fed holds rates
December 2023 Update
Nathan Udomsri
December 15, 2023
Another Pause for December
Inflation has lowered month over month, which is helping to lower mortgage rates.
⏸️ Federal Reserve pause Federal Funds Rate 3 months in a row: Jerome Powell said that they will begin cutting the Fed Funds Rate before Core PCE hits 2%. Although the Fed Funds Rate is not directly tied to Mortgage Rates, we should still see improvements.
📉 Inflation down from 3.2% to 3.1%: Consumer Price Index (CPI) went down 0.1%, analysts were expecting more, but still a move in the right direction. Regarding Producer Price Index (PPI) is down from 1.2% to 0.9%.
📁 Purchase Applications up = More buyers house hunting: When the number of applications go up, it shows that more buyers are getting ready to buy homes. 🔮 I foresee this trend will keep going if mortgage rates keep getting better.
This is our first official 📰 newsletter that we’ve been planning for awhile! I hope you’re able to get a quick snapshot of the market + get to know us a little better.
I appreciate you opening and reading this far.
Talk soon,
Nathan
👇️ PS - More Below
Conventional 5% Down for Multi Family
📅 Effective November 18th 2023
🗺️ FHA was the most popular loan for multi-family, but had certain disadvantages when submitting offers (ie: Appraisal requirements, Self Sufficiency Test, etc.)
📊 If you were doing Conventional before for multi-family, it ranged from 15% to 25% Down! Now you can put as low as 5% down. This could help with affordability in homeownership.
Most loan programs will want to see 2 Months of consecutive bank statements. There are certain cases where you only need 1 Month to allow seasoning of funds!
This past month I was able to take my Mom on a short trip to Cabo for her birthday 🎉 It was her first time there! I also completed the 75 Hard challenge. Like in the name says, it definitely was a challenge, but was rewarding to complete.
This year I’ve been focusing on memorable experiences! So for Thanksgiving I was in Los Angeles with my fiancé’s family. On Thanksgiving, I did my first Turkey Trot 5k run🏃 I got a little exercise in AND I could eat more 🍽️ Win Win!