Mortgage rates are reaching historic lows, and as one might expect, borrowers are taking note. Whether it’s existing homeowners making the most of the dip in rates to refinance or upgrade to something bigger, first-time buyers just entering the market, or luxury homebuyers and developers, Californians are taking advantage of these low mortgage rates while they last.
According to a story in the LA Times, the National Association of Realtors reported that home sales last month increased at their highest rate in eight years. Existing homeowners are benefiting from the low, low rates on shorter term loans like five-year adjustable-rate mortgages, where the national average is below 3%. For those looking for a longer term commitment or a slightly lower, more predictable monthly payment, 30-year mortgages are also reaching record lows with a national average around 4%.
Commercial borrowers in California are getting in on the action too – even jumbo borrowers are finding that increased competition in that market is driving rates down. The latest Allen Matkins/UCLA Andersen Forecast, which examines seven of the state’s leading markets, including multi-residence housing development, notes a move away from construction of single-family homes, while multi-family residential developments continue to increase. In fact, the study predicts that over the next three years, multi-family residential development will reach a 25-year high. The study attributes the apparent boom to an increase in tech and media jobs, as well as job and income growth.
To find the most current mortgage rates and compare loan types, visit GoldenStateMortgate.com.