Costa Mesa Mortgage Interest Rates Fall to Lowest Level in 3 Years

In a surprising trend, Costa Mesa Mortgage Interest Rates Fall to Lowest Level in 3 Years. Currently, the average rate for a 30-year fixed mortgage is 3.58 percent, down from 3.59 percent last week and the lowest since May 2013, according to Freddie Mac. Overall, mortgage rates for 30-year U.S. loans dropped to the lowest level in almost three years, aiding home buyers during the housing market’s busiest season for transactions. The average 15-year rate slipped to 2.86 percent from 2.88 percent. Mortgage rates are not expected to increase anytime soon. The Federal Reserve decided to hold interest rates unchanged last month to wait for more clarity on whether slower growth abroad will hobble the U.S. economy.

 

Falling interest rates can certainly help this Costa Mesa housing market
That certainly cuts both ways for active Costa Mesa real estate buyers right now. These low rates will help buyers afford more locally in Costa Mesa, but with average prices already over $750,000 in Costa Mesa now, we need more inventory for those buyers.

 

As I reported in my predictions post at the beginning of the year, I expected rates to rise this year, so this is a bit surprising. And this news will certainly help Costa Mesa real estate sellers. With prices at all-time highs in most of the market, and creeping higher, the lower interest rates will help push the market along so that buyers can afford those higher prices for an easier monthly payment.

 

You can also see from the Freddie Mac chart posting below (image courtesy of Freddie Mac) that interest rates have remained fairly unchanged as you look back on a year’s worth of data. Certainly interesting when you think about what an interest rate of 5% would look like in this current market.

 

To sum it up – it’s a great time to buy if you are thinking about it. Check out our post on what lower interest rates mean in the course of owning a home, and why buying with a lower interest rate is a great idea even if prices are higher now.

 

Need help with a home or a lender? Connect with broker Colin Delaney at (714) 743-9882 or email him.