Costa Mesa Real Estate Rising, Along with Interest Rates
Here’s a great video clip from the Wall Street Journal’s digital network explaining why interest rates are rising. Costa Mesa home prices have been rising too, accelerating more than 20% in the past year.
Of course, homeowners are very excited to see prices rise. In some cases, they have risen in certain areas of Costa Mesa real estate to that near levels of the early 2006, just before the housing bust. At least this time the prices and sales have been supported by real loans, rather than the interest-only, Stated income, or adjustable rate ARMs that were widely fueling the last big boom.
Inventory is getting better, albeit slowly. Costa Mesa could use a lot more homes for sale than what is out there now. I think that will come, but it will creep to a better place than it is slowly over the next six months. As the video says, you are not in any danger of having rates skyrocket. The Fed intends to stay with the same programs they are using now to buy bonds, and don’t expect rates to rise anywhere near 5.5%, which is the historic 30 year average for loans.
Why are Costa Mesa Real Estate Interest Rates Rising?
That’s good. That means buyers who miss opportunity don’t have to make bad choices or force fit themselves into a home that they don’t really love. Rates in the low 4% range (where they are as of this post) are very healthy for Costa Mesa real estate right now. It helps keep out people that can only afford homes in the low 3% rate, but also keeps prices up for those sellers who are contemplating selling their Costa Mesa real estate.
Need help in Costa Mesa? Feel free to call Colin at 714-743-9882 or E-mail me. I have great lenders that I work with for every situation you might need too!