Current rate drop to about 4.03% for 30-year fixed rate mortgage (for those who qualify) is a big savings for buyers on a monthly basis.
The FED has been printing money by funding the secondary market and purchasing mortgage back securities. It has held the Federal Fund Rate at almost ZERO for over five years. Lenders are essentially charged next to nothing to borrow money and are able to pass along this savings in the form of unbelievably low interest rates.
But that won’t last forever. The FED is ready to eliminate the economic stimulus (end QE3). The FED is looking to keep a lid on inflation and increase the Federal Fund Rate in about six months. That’s where we will see a change in interest and mortgage loan rates. As the Federal Fund Rate increases, banks’ profitability is squeezed, and lenders will raise their rates to home buyers and those who refinance.
In about six months – or about April 2015 – pressure is expected to rise on interest rates.
Message to home buyers and those who want to refinance: DON’T WAIT. Lock in your great mortgage loan rate now. There is no better time than now to buy your Orange County home and lock in the low rate.
Orange County CA how has 7,174 homes listed for sale, which is 841 more than same time last year. The expected average market time for all of Orange County CA is at 3.24 months now – or 97 days – now a balanced market that does not favor buyers or sellers.
Sellers at Orange County CA should make sure they are pricing their homes correctly from the start, so they can get real buyer attention during this balanced market.
By Harrison K. Long – Source of some information is CRMLS and ReportsOnHousing and is for listings and sales by all agents and brokers.
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