Affordable mortgage rates could help California home buyers

With mortgage rates continuing to fall closer to record lows, buyers browsing the inventory of homes for sale in Los Angeles could obtain affordable financing to purchase a house.

For the fifth consecutive week, 15- and 30-year fixed-rate mortgages either fell below or neared all-time lows to begin to May, according to Freddie Mac.

Fifteen-year FRMs averaged 2.56 percent, down from 2.61 percent in the previous week and a new record low. The longer loan option dropped from 3.4 percent to 3.35 percent, just higher than the all-time low set in November 2012.

“Mortgage rates eased somewhat following the release of the advance estimate of real GDP growth for the first quarter of the year, which rose 2.5 percent but fell short of the market consensus forecast,” said Frank Nothaft, vice president and chief economist at Freddie Mac.

Low interest rates could provide a boost to home sales in the Golden State during the end of spring and beginning of summer. According to DataQuick, sales between February and March edged up just 0.8 percent.

Should rates continue to remain affordable, Downtown Los Angeles could see an influx of buyers in the near future.

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