While current mortgage rates ticked up slightly this last month, they are still historically low and significantly lower than they have been in the last 5 years.
The graph below provides a look back at the last 40 years. If you bought a house in the early 80s at an 18% rate, you might be laughing at anyone complaining about the current rates.
So why is this happening? The answer is actually good news: the economy is improving. Coronavirus cases are decreasing as more people are getting vaccinated, more vaccines are becoming more widely available, and the House just passed President Biden’s $1.9 trillion (yes, you read that correctly) COVID-19 stimulus package – now it will go to the Senate.
As the economic picture brightens, rates are expected to go up, however, they are not expected to spike. The Mortgage Bankers Association forecasts the 30-year fixed-rate mortgage rate will reach 3.4% by the end of this year, which is still LOWER than the 3.5% rate in the first quarter of 2020.
So what does this all mean? Simple: if you are looking to buy, now is still the time. We work all over LA County, or as we like to say: from Pasadena to the Palisades, and we see it all. While our team continues to experience bidding wars due to the lack of inventory, we are also noticing that, in certain markets, the uptick in interest rates, coupled with a slight increase in inventory, has, in fact, eased the competition slightly. Bottom line, Keyes Real Estate provides you with the competitive advantage to successfully navigate these changes, whether you are looking to buy or sell.
With that in mind, have you seen our latest inventory? We have something for everyone! CLICK HERE.