When the FED (US Federal Reserve) dropped the 10 year treasury rate to 2.18%, we all know that's amazingly low.
The OC Register reported that the Federal Reserve "pulled out all stops, lowering already low key interest rates to about zero. Lower rates by the Fed could help fend off deflation."
Is it possible that 30-year conforming mortgage rates in California could come down to 4 percent?
Conforming mortgage rates in California are now as low as 4.5 percent (plus one point) with some lenders (plus costs & adds if requested).
Mortgage rates have not and probably won't fall as much as treasuries, because of shorter term and higher liquidity of treasuries.
Will the US Treasury be buying long term mortgages to keep its own rates low? Who knows?
The median sold price of a home in California is now low at about $285,000.
Will conforming mortgage rates come down to even below 4.375 percent?. Let's wait and see.
After today's FED news, the California home "affordability index" should be favoring home ownership vs. renting.
Check out the NAR's First Time Homebuyers Income Tax Credit Chart.
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Harrison K. Long, Explore Group properties, Coldwell Banker Previews, Irvine, CA.
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