Interest Rates Are Expected to Go Up This Year

Sixteen years ago, back in 2007, I was new to the mortgage business. I sensed something was about to happen, but I didn't know what—and no matter how much I searched, I could not find anyone who could explain it. 

I was working on a loan for a young woman, and right about the time she gave me the go-ahead to submit the paperwork, the lender I had lined up for her went out of business! I called them and got a wrong number message; then I tried to log into their lender portal, and there was no website anymore!

I thought this was strange, so I tried Lender #2—same thing! Number not working and website gone! I went down the list of 6 lenders I was doing business with, and ALL of them were GONE! On Thursday I was talking to them, and the next Tuesday they were ALL GONE! 

What amazed me was the speed of the downfall. 

That was the 2007-2008 crisis that you now read about as part of history.

I promised myself that next time around I was going to make it a point to:

1) Keep myself better informed

2) Vet my information sources more carefully

3) Educate myself so I would be able to articulate this scenario

And here we are! February of 2023! This is what is happening:

We are going through the eye of the storm—everything is calm and "normal."

But in April/May of this year, this will change.

There is a tremendous pressure building up for Interest Rates to go up; the reasons are not limited to the USA, and this is why US analysts and commentators miss it—they have to look abroad. Oddly, almost no one does!

You might have heard something like:

• Interest rates are coming down.

• Inflation is not that bad.

• The country is doing better post C19.

• Things are returning to "normal," whatever that means.

None of this is true; it is actually almost the reverse on every count!

You don't have to be a spectator and be the adverse effect of these forces; you can STILL have your cake and eat it too!

Lenders are going out of business now! Not at the same pace as in 2007—yet, but they are! This week alone I have spoken to two high level executives in the lending industry who have been fired because their company is not doing well. 

We are in the odd and paradoxical situation whereby lenders are pressured to give concessions that they would not have considered a few months ago, because they have to do loans to stay in business, while at the same time they know they only have a narrow window to do this and their current rates are unsustainable but, for now, they have no other option. They are on a precarious balance!  

Their analysts do KNOW what is coming! This is why they are preparing for the storm; they are reducing their size, firing employees, etc... 

If you have a real estate project, be it buying a property, doing a refinance, building an ADU, doing a remodel, securing a construction loan or even doing a reverse mortgage, NOW IS THE TIME! 

It takes about 30 days to prepare you for a successful loan application, then it takes another 30 days to get your loan funded—this is a minimum of 60 days!

We are licensed in California and Florida, we specialize in the business owner, artist, creative entrepreneur and self-employed professional.

Call me at 310-294-9417 with your specific scenario—the consultation is free.