Mortgage rates have been fluctuating for the last month because of the new Covid variant, Omicron. Any sign of risk affects interest rates and the availability of money, and the financial world is concerned with “what if” rather than “what is” when it comes to determining what’s occurring in the market. More risk means there will be a hike in interest rates, as we’ve been experiencing until recently. The opposite has happened since the emergence of Omicron, with more foreign exchange money flowing into US treasuries, which are regarded as safe havens for foreign economies in times of uncertainty, driving down the cost of the 10-year note. Global economic and financial crises, disasters, and Covid are all volatile elements in the way markets behave, and the government has put stimulus money into the economy in response to each of these situations to keep interest rates lower. As a result, there has been a scramble to buy homes to take advantage of the more affordable interest rates amid the uncertainty of how long they will stay that way. The consumer sentiment index is at a low ebb because of pandemic fatigue, as people are trying to get back to their pre-Covid spending patterns. How long will that last? What’s next for the mortgage market as Omicron gains more of a foothold around the world? Jeff’s guests this week include:

– Reed Blake of Foresight Funding Advisors discusses business lines of credit.

– Phil Berson from Compass Realty talks about housing inventory issues in the Calabasas area, located in the upper end of Los Angeles.