Up, Down, Up, Down Interest Rate- So. Cal.

 

Here are some key interest rate change indicators for your information. 

For current listing or current solds in your area – we invite to visit our website at

www.WeSpeakRealEstate.com. 

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Things that may raise interest rates.

 

Consumer Price Index Rises

Indicates rising inflation.

 

Durable Goods Orders Rise

Pickup in business activity usually leads to increased credit demand.

 

Housing Starts Rise

Shows growth in economy and increased credit demand. Fed tightens money supply by

raising rates.

 

Leading Indicators Up

Signals strength in the economy leading to greater credit demand.

 

Personal Income Rises

The higher one’s income, the more consumed, prompting higher prices of debt securities.

 

Producer Price Index Rises

Indicates rising inflation. Demand for, and prices of, goods rises.

 

Retail Sales Fall

Indicates stronger economic growth. Fed may tighten money supply.

 

What will lower interest rates?

hat May Raise Interest Rates

Gross National Product Falls

Reflect a slowing national economy. Fed loosens money supply by lowering rates.

 

Industrial Production Falls

Indicates slowing economic growth. Fed loosens money supply by lowering rates.

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Inventories Up

Indicates a slowing economy since sales are not keeping up with production.

 

Oil Prices Fall

Reduces upward pressure on interest rates, thereby enhancing prices of debt securities.

 

Precious Metal Prices Fall

Reflects decreased inflation. Demand for inflation hedges falls.

 

Unemployment Rises

Indicates stronger economic growth. Fed may tighten money supply.

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Steps For Buying A Home

It is one of the best times to

buy a home.  Interest rates

are at their lowest and

properties are at their lowest

Give it a try!  You won’t know

until you try.

info@WeSpeakRealEstate.com

1. Select a REALTOR® & establish a relationship

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Find a full time, professional REALTOR® with extensive market knowledge. They will work closely together with you to find the right home.

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2. Initial consultation with your REALTOR® to evaluate your needs

and resources.

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Once your needs are established, your Realtor® will provide guidance to financial institutions where you can obtain information in order to get the best financing available. You will discuss your needs and analyze your resources.

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3. Identify property to buy

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You will be shown homes based upon the criteria that you establish. The more precise and direct you are with your Realtor®, the more successful your search will be.

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4. Determine Seller’s motivation

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Once you have found the home that you wish to purchase, your Realtor® will do the necessary research to help you structure an effective offer.

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5. Write offer to purchase

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Your Realtor® will draft the Purchase Agreement for you, advising you on protectivecontingencies, customary practices, and local regulations. At this time you will need to provide an “earnest money” deposit, usually from 1 to 3% of the purchase price (the deposit is not cashed until your offer has been accepted by the Seller).

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6. Presentation of offer

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Your Realtor® will present your offer to the Seller and the Seller’s agent. The Seller has three options: they can accept your offer, counter your offer, or reject your offer.  Your Realtor’s® personal knowledge of your needs and qualifications will enable them to represent you in the best way possible.

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7. Seller’s response

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Your Realtor® will review the Seller’s response with you. Their negotiating skills and knowledge will benefit you in reaching a final agreement.

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8. Open escrow

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When the Purchase Agreement is accepted and signed by all parties, your Realtor® will open escrow for you. At this time your earnest money will be deposited. The escrow or title company will receive, hold and disburse all funds associated with your transaction.

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9. Contingency period

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This is the time allowed per your purchase Agreement to obtain financing, perform inspections, and satisfy any other contingencies to which your purchase is subject. 

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-Typical contingencies include:

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* Approval of the Seller’s Transfer

* Approval of the Preliminary Report from the Title Company

* Loan approval, including an appraisal of the property

* Physical inspections of the property

* Pest inspection and certification

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10. Homeowner’s Insurance

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Your Realtor® will coordinate between your Insurance Agent and the Escrow Officer to make sure your policy is in effect at close of escrow.

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11. Down payment funds

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You will need a Cashier’s Check or money transfer several days prior to the closing date of escrow.

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12. Close escrow

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When all of the conditions of the Purchase Agreement have been met, you will sign your loan documents and closing papers. You will deposit the balance of your down payment and closing costs to escrow and your lender will deposit the balance of the purchase price.  The Deed will then be recorded at the County Recorder’s office and you will take ownership of your home.

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Congratulations!