WILL MORTGAGE RATES RISE OR WILL WE STAY BELOW 5 PCT FOR A FEW MORE YEARS

WILL MORTGAGE RATES RISE OR WILL WE STAY BELOW 5 PCT FOR A FEW MORE YEARS

The name of the the article from the NY Times is "WHEN MORTGAGE RISE" not if. We would be foolish in our planning if we think that the rate can stay below 5% for much longer. You can see from the 90 day  graph to the left (It compares 30 yr. to 15 yr. fixed mortgage) that over the last three months it has been well below 4.5% and is currently close to 4%. What the article goes on to explain is that even a .25 point rise will effect buying power and an increase of 1% will have a tremendous negative effect on what you can afford to buy. Here is your link  http://goo.gl/IiTk7S

In Santa Monica Real Estate or places like Beverly Hills Real Estate a 1 point rise in interest rates can effect your monthly mortgage payments to go up $700. Even in less expensive sections of Los Angeles it will be over $500.

                                                                                      

As you can see above, the interest rates have been well below 5% for over 3 years, for our younger first time home buyers this is not normal, they will be going up shortly and the talking heads, as the article points out, are saying over 5% next year.

This is not the first time I have said this but it is worth keeping in mind, if you are not a cash buyer and you will be financing stop worrying over that house that has gone up $25,000 or even $50,000 over the past two years keep your eyes open at the interest rates. West Los Angeles Real Estate Group has seen prices steady and more inventory coming into our market.... good news for buyers. Questions???? I have answers call me 310.505.5571 and lets talk Real Estate



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Phone: 310-505-5571
Dated: September 29th 2014
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