A Slight Rise in SoCal Mortgage Rates Won’t Hurt Home Buyers

 

Mortgage rates inched up this week, but the 30-year fixed-rate mortgage continues to hover near its record low. The uptick isn't expected to have any impact on homebuying activity, according to the National Association of REALTORS®.

The 30-year fixed-rate mortgage averaged 2.99% this week after hitting an all-time low of 2.88% at the beginning of the month, Freddie Mac reports. Home buyer demand continues to accelerate and is providing support to an otherwise stagnant economy, says Sam Khater, Freddie Mac’s chief economist. Further, a surge in home sales has led to a rapid increase in demand for remodeling and home furnishings as consumers look to renovate during the COVID-19 pandemic.

Mortgage rates will likely move lower over the coming weeks, too. “Going forward, rates could still come down due to the super-accommodating monetary policy that has kept the benchmark Treasury yields at under 1%,” NAR says. Freddie Mac reports the following national averages with mortgage rates for the week ending:

• 30-year fixed-rate mortgages: averaged 2.99%, with an average 0.8 point, rising from last week’s 2.96% average. A year ago, 30-year rates averaged 3.55%.
• 15-year fixed-rate mortgages: averaged 2.54%, with an average 0.7 point, increasing from last week’s 2.46% average. A year ago, 15-year rates averaged 3.03%.
• 5-year hybrid adjustable-rate mortgages: averaged 2.91%, with an average 0.3 point, increasing from last week’s 2.90% average. A year ago, 5-year ARMs averaged 3.32%.