Mortgage Rates Move Lower for Second Consecutive Week

Mortgage Rates Plunge to 3-Year Lows

For the second consecutive week mortgage rates moved lower, and are currently the lowest since May 2013.

“The 10-year Treasury yield continued its free fall this week as global risks and expectations for the Fed’s June meeting drove investors to the safety of government bonds,” says Sean Becketti, Freddie Mac’s chief economist. “The 30-year mortgage rate responded by falling 6 basis points for the second straight week to 3.54 percent — yet another low for 2016. Wednesday’s Fed decision to once again stand pat on rates, as well as growing anticipation of the U.K.’s upcoming European Union referendum will make it difficult for Treasury yields and — more importantly — mortgage rates to substantially rise in the upcoming weeks.”

Freddie Mac reports the following national averages with mortgage rates for the week ending June 16:

  • 30-year fixed-rate mortgages: averaged 3.54 percent, with an average 0.5 point, falling from last week’s 3.60 percent average. Last year at this time, 30-year rates averaged 4 percent.
  • 15-year fixed-rate mortgages: averaged 2.81 percent, with an average 0.5 point, dropping from last week’s 2.87 percent average. A year ago, 15-year rates averaged 3.23 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.74 percent, with an average 0.5 point, down from last week’s 2.82 percent average. A year ago, 5-year ARMs averaged 3 percent.

While it’s nice to see mortgage rates staying low, we have to remember that low rates come only because the Fed feels like the economy still needs a prop. This has been going on since the Great Recession started in 2008. We can’t root for low rates (aka a “weak economy”) forever.

If you’ve been putting off refinancing or buying a new home, don’t wait. Ping me and I’ll put you in touch with my favorite mortgage broker. Want to buy a new home, but don’t know where to start? Schedule a time to chat and we’ll talk strategy! Nothing gets me revved up like helping a family build wealth through smart real estate decisions. 😀

LA residents are buying vacation homes…in LA

Instead of buying vacation in exotic, faraway lands, wealthy homeowners are now buying second homes in their hometowns as vacation properties, the Wall Street Journal reports

What you need to know:

  • Wealthy homeowners are starting to buy second homes in their hometowns.
  • This trend has been observed in LA, Miami and NY
  • Busy professionals who can’t be too far from work are driving the trend
  • 2nd homes in town are also great for guests

Thinking a second home in town might be a good idea? A beach house up the coast or maybe a loft in the booming downtown area? Contact investment expert Tracy Thrower Conyers to discuss possibilities.

For more: The Ultimate Staycation? A Second Home in the Same City [wsj]

5 Real Estate Trends to Know Before Selling Your Los Angeles Home

With housing prices in the Los Angeles metro area hitting historic highs, now might be time to make a move and sell your home. But in order to sell quickly and for the best price, take a minute to learn about what’s going on in the market so you’ll have a firm grasp of what needs to be done.

What you need to know:

  • If a property is priced well, there will be multiple offers
  • Turnkey properties are hot sellers
  • New construction is king
  • Look east and south from the beach communities for the new destination neighborhoods
  • Community is big, making condos and other densely-packed neighborhoods popular
  • Access to Metro rail lines and walkability are big sellers
  • Big ticket homes ($5M+) will be slow until the Presidential election when we know more about the direction of the economy
Contact Westchester CA real estate expert Tracy Thrower Conyers with questions about how the current environment might impact your real estate decisions.