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The biggest story seems to not be the biggest story when it comes to the Iran War and real estate sales in California.
During this past month we saw rising oil prices as oil disruption is no longer contained to the Strait of Hormuz but has now also spilled over to the Red Sea and the Caspian Sea. As the tensions in the Middle East continue to rise, economists are predicting higher inflation as well --a key factor against lowering mortgage rates. Half of the Fed committee is in favor of a rate hike, while Fed Chair Kevin Warsh and the other members are trying to keep the Federal Funds rate unchanged for now.
historical norms. This coupled with the fact that employment remains strong in metro areas like West Los Angeles, there still remains a persistent demand and a limited housing supply.
Bottom line is that home buyers in California understand that buying your primary residence is a long term play. They are not dissuaded by the doom and gloom from the news. The real estate market here remains resilient.
Despite the average 30 year fixed mortgage rate increasing for four consecutive weeks now, total mortgage applications were up 1.9% week over week. The national median existing home price rose to a new record, up 1.8% year over year.
Buyers in California are savvy. They are taking longer to make decisions as they have slightly more negotiating power. However, because current homeowners with ultra low rates are unwilling to sell in a higher rate environment, inventory of homes continues to remain below
