Mortgage rates reach all-time lows again, loan activity likely to increase – Santa Monica Real Estate
While higher home prices may make some potential buyers of homes for sale in Los Angeles hesitant to make the investment, mortgage rates have fallen to new all-time lows for the second straight week, offsetting higher prices.
The most recent Primary Mortgage Market Survey from Freddie Mac reveals the average rate for 30-year fixed-rate mortgages fell to 3.36 percent, down from the previous week’s average of 3.4 percent. This marks the second week of reaching new record-lows, and remains significantly lower than this time last year, when the average was 3.94 percent.
Additionally, data for the week ending October 4 shows the average rate for 15-year FRMs was 2.69 percent. Last week’s average was 2.73 percent and rates in recent months have been lower than a year ago at this time when the 15-year FRM averaged 3.26 percent.
Despite the unexpected drop in mortgage rates in recent weeks, industry experts say both home prices and rates will increase throughout the remainder of the year and well into 2013. Those considering making the investment are urged to begin their search for a home in Southern California to take advantage of high affordability.