Real Estate Roundup
Mortgage rates have been one of the hottest topics in the housing market lately because of their impact on affordability. And if you’re someone who’s looking to make a move, you’ve probably been waiting for rates to come down for that very reason. Well, if the past few weeks are any indication, you may be getting your wish.
Mortgage Rates Trend Down in Recent Weeks
After the latest reports on the economy, inflation, the unemployment rate, and the Federal Reserve’s recent comments, mortgage rates started dropping a bit. And according to Freddie Mac, they’re now at a level we haven’t seen since February.
Maybe you’re seeing this and wondering if you should ride the wave and see how low they’ll go. If that’s the case, let me share this with you…
Keep in mind, the record-low rates from the pandemic are a thing of the past. If you’re holding out hope to see sub 3% mortgage rates again, you’re waiting for something experts agree will not happen. As Greg McBride, Chief Financial Analyst at Bankrate, says:
“The hopes for lower interest rates need the reality check that ‘lower’ doesn’t mean we’re going back to 3% mortgage rates. . . the best we may be able to hope for over the next year is 5.5 to 6%.”
If you wait for mortgage rates to drop further, you might find yourself dealing with more competition as other buyers re-ignite their home searches too. Los Angeles has always had a strong market, so I’d expect a return to bidding wars that push the purchase prices higher. Remember what I have been saying; marry the house, date the rate.
Bottom Line
If you’ve been waiting to make your move, the recent downward trend in mortgage rates may be enough to get you off the sidelines. Rates have hit their lowest point in months, and that gives you the opportunity to jump back in before all the other buyers do too.
If you’re ready, call me to get started. The real estate industry is about to enact a whole slew of new rules that will change how sales are transacted. Please call me! I want you to be fully informed.
Until next month,
Emily