To my friends and business partners:
Together, we’ve weathered the storm of uncertainty through the 2008 recession, and for some of you, as far back as 9/11. As we face this unprecedented coronavirus pandemic – whether you're experiencing physical symptoms, adjusting to a school closing, changing travel plans, or grappling with fear about a global recession – every single person is being impacted. I assure you that I’m here to support you, your families and businesses in any way I can. With that, I would like to cover 3 topics in this newsletter: interest rates, how the stock market impacts buyers and sellers, and what we can do to support each other.
Interest rates for home purchases and refinances are extremely volatile. There is a lot of confusion and uncertainty about what this means for home buyers. Kip Davis with First California Funding sent me this message today to help clarify: You may have seen today that the Fed lowered PRIME rate to close to 0%. The PRIME rate is NOT connected to 15, 20, 30 yr mortgage rates. In fact, there can be an inverse relationship. For example, last week, mortgage rates INCREASED by close to 1.0% as the Fed talked about and lowered the PRIME rate. The PRIME rate is tied to Home Equity Lines of Credit (HELOCs). If you have a HELOC that is not tied to a fixed "intro" rate and is variable, you can expect that rate to go down. It does not mean it will go to zero. Mortgages are bundled and sold on the secondary market to investors much the way stocks are traded. Mortgage rates to 0% would be like all stock prices going to $0... This would not be good for anyone. The Fed is lowering the prime rate to help businesses stay afloat as they are certain to experience a loss of revenues over the next several weeks. Businesses have debt and if they have low interest rates, it makes it more affordable to pay employees, etc. Please feel free to call Kip at (619) 405-8510 or email him (firstname.lastname@example.org) with any questions you might have about mortgage financing.
Stock Market Impact for Buyers and Sellers
This morning, the CEO of Compass distributed an audio interview between Alli McCartney, managing director of UBS’s wealth management division and Rory Golod, regional president of Compass New York, hosted by New York agent Cindy Scholz. In this conversation, Alli, a well-regarded financial expert, discusses how the financial markets are affecting buyers and sellers, and what the coming weeks and months could bring. Click here to hear an expert’s view on how the financial markets impact real estate. (Note: The interview starts at 3 min 30 secs after introductions).
Supporting Each Other
Today, San Diego County representatives announced that effective midnight tonight, restaurants are restricted to takeout orders only. Two of our local restaurants owned by members of our real estate family would love your support: GoodOnYa Organic
Located at 1051 S Coast Hwy, Suite 101 in Encinitas. Order and pay online, or call 858-264-8550 to place your order. See this Instagram video by owner Kris Buchanan (@goodonyaorganic) on how to stay healthy during any virus season. STP Bar-N-Grill
Located at 5487 Clairemont Mesa Blvd in Clairemont. Call 858-430-6911 to place your order. STP owners Tina and Shannon may be offering a delivery option as well. Both STP Bar-N-Grill and GoodOnYa Organic offer gift certificates for purchase.
If you run a business and want me to help spread the word about how our community can support you, please call me at 619-890-2877 or send an email to email@example.com. Everyone’s health and safety are our first concern. We urge everyone to stay informed (the Centers for Disease Control regularly updates their site) and to take the recommended precautions. Sincerely, Noel Wheeler and Ashley Anderson