Last week, mortgage rates saw a modest dip of 0.02%, which led to an increase of 3.6% in refinance applications. This is down 36% in comparison to this time year when mortgage rates were lower. The 30 yr. fixed interest rate for conforming loan amounts of $421,100 or less, ended the week at 4.14%. Although this figure has risen steadily over the last four weeks, interest rates are still at near historical lows.
What does this mean for you? If you are looking to purchase a home, although prices may have risen in many areas of the Westside, interest rates are still in your favor and to a larger extent, counterbalancing the rise in prices. If you are looking to refinance and somehow missed interest rates in the 3’s, there is still a window of opportunity to refinance into a lower payment, saving you thousands over the life of the loan.
In the end, we will need to pay attention to the balancing act of prices…inventory…and interest rates. If a lack of inventory continues to push prices higher while we see further upticks in interest rates, we will most certainly see a cooling off of home purchases. The affordability rate will continue to shrink, leaving many buyers priced out of the high demand, desirable Westside market. When that happens, markets tend to shift from a seller’s market to that of a buyer’s market, as fewer people can now afford to buy.
If you’re still looking to refinance or considering a home purchase, feel free to call…email…or shoot us a text. We have relationships with some of the Westside’s top lenders, including those who offer NO-COST refinancing. We’re here when you need us…just let us know.
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