You may have heard news headlines over the past month or so that mortgage rates have been rising. If this has you worried about your plans to buy a home over the next few months, let’s talk facts. The truth is that yes, rates have risen, but only slightly, and they remain lower than they were this same time last year.
Contrary to what much of the inflammatory media tells us, there is so much great news about mortgage rates if you’re planning to buy a home this spring and summer! Freddie Mac, just released a statement by Sam Khater, their chief economist that says…
“Moving into summer, we expect rates to be about a quarter to half a percentage point lower than where they were last year, which is good news for the housing market. These lower rates combined with solid economic growth, low inflation and rebounding consumer confidence should provide a solid foundation for home sales to continue to improve over the next couple of months.”
So, if you were thinking that you missed the boat last year, it actually may be a blessing in disguise because the housing market, jobs, and the economy are looking even better this year. This is prime time, my friends! And I can tell you that from where I sit here in Westlake Village, CA, the housing market it heating up faster than sunny summer SoCal.
At the end of April we learned that the home prices in Southern California actual dipped slightly in March as compared to a year ago. In fact, CoreLogic reported that homes here in SoCal are $18,500 lower than their June 2018 peak! The median price of a home in California is $518,500 lower than last year’s all-time high of $537,000 reached in June.
Now, if you were shopping for a home last year, it’s possible that this year you will have greater affordability because both home prices and mortgage rates are lower this year. How’s that for a great reason to jump in to the housing market this year?!
If you have any interest in purchasing a home or investment property this year, let’s talk as soon as possible and discuss your options and make sure you can take advantage of this incredibly favorable market. We have a huge number of mortgage options, even for those that may be ‘nontraditional’ borrower situations. Call or text me at 818.307.6072 to learn more.
And stay tuned for my next article where I’m going to cover some of the great programs we have for alternative borrower situations. It’s so exciting for many of my clients and may be for you too! Until then…