“If mortgage rates weren’t enough,” began last week’s CNBC.com commentary, “it was even harder to qualify for a mortgage in July…” That dour introduction was followed by a series of Eeyore-worthy observations. Lest Costa Mesa house hunters—many of whom will soon be among home loan seekers—take the discouraging news as catastrophic, it’s only fair to point out that the national outlets like CNBC are describing U.S. markets as a whole rather than Costa Mesa itself. Still, the generalizations are such that many American markets do face strong fiscal headwinds.

Some of the noteworthy details:

  • The Mortgage Bankers Association gauged that in July, it was “harder…to qualify for a mortgage…than it has been in a decade.”
  • “Credit availability” (the measure of lending requirements) was the lowest in July than it has been since 2013.
  • A decline in the volume of “cash-out” refinancings was hurting lenders’ bottom lines—although nobody could doubt that the attraction of trading “a 3% rate for a 7% rate just to pull cash out of their home…” was responsible.
  • The lower profitability that many U.S. lenders were experiencing is resulting in their need to reduce their operating costs by cutting back on the variety of loan offerings.

For Costa Mesa home hunters who have ample cash (for instance, those who have sold their existing home after the rapid gains of recent years) there could be a nugget of good news—although CNBC didn’t mention it. If financing is hard to come by, the number of buyers who depend on it will surely tail off—leaving cash offers less competition.

Purchases and sales (or both) are indeed continuing locally—and it’s a market that rewards patience and skill. Call us to help bring both to the signing table!

We are built on a philosophy of Heritage & Hustle. The L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976.  It’s L3 mission is to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. The L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, The L3 has grown to a full staff of 25 serving over 300 clients a year. The L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has The L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa  If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at info@thel3.com

Posted by Matt Kanoudi on
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