Mortgage Rates Increased Sharply in the Last Week of May. Fear of Rates Returning to Normal Could Move Buyers and Borrowers to Act Now!
The Los Angeles Times ran a story on May 31 suggesting that rising home prices and mortgage rates in Los Angeles could ignite a rush to secure real estate and mortgages at historic low levels. The Times quoted two local real estate professionals:
Syd Leibovitch, president of the real estate firm Rodeo Realty in Beverly Hills, said that the market is already red hot, but that the rise in rates will no doubt have the effect of getting more folks into the market.
"If people aren't motivated by them going up, they should be," Leibovitch said. "These are going to be the lowest rates that they have seen, that their children have seen.... They are never going to believe they were this low."
Steve Goddard, an agent with Re/Max Estate Properties in Manhattan Beach, said it is common for people sitting on the fence to get motivated by rates creeping up.
"When we see an uptick in interest rates, people start to get that feeling that they might have missed the bottom of the market — which they have already. But sometimes fear is an important factor in buying property," he said. "The interest rates are still very, very good, and people who want to buy a property, if they can, should be out there trying to buy."Los Angeles Mortgage Broker, Bill Rayman has been shouting this tune from the housetops for years to anyone who would listen. You can go back and review earlier blog posts here or view his videos from years ago, long before home prices started moving up at the current rapid clip.
If you have any thought to buy a home, move up into a bigger or better residence, or if you are thinking of any type of remodel or rebuild, this is the time to act. The average mortgage interest rate over the last 30 years has been 8.6%. With rates at 4%, this is the time to get the mortgage of a lifetime.