David Deem 714-997-3486 Dave@DeemTeam.com With the average 30-year fixed mortgage rate from  Freddie Mac  climbing above 3%, rising rates are one of the topics dominating the discussion in the housing market today. And since experts project rates will rise further in the coming months, that conversation isn’t going away any time soon. But as a homebuyer, what do rates above 3%  really  mean? Today’s Average Mortgage Rate Still Presents Buyers with a Great Opportunity Buyers don’t want mortgage rates to rise, as any upward movement increases your monthly mortgage payment. But it’s important to put today’s average mortgage rate into perspective. The graph below shows today’s rate in comparison to average rates over the last five years: As the graph shows, even though today’s rate is above 3%,  it’s still incredibly competitive. But today’s rate isn’t just low when compared to the most recent years. To truly put today into persp...

  David Deem 714-997-3486 Dave@DeemTeam.com Mortgage rates are one of several factors that impact how much you can afford if you’re buying a home. When rates are low, they help you get more house for your money. Within the last year, mortgage rates have hit the lowest point ever recorded, and they’ve hovered in the historic-low territory. But even over the past few weeks, rates have started to rise. This past week, the average 30-year fixed rate was 3.14%. What does this mean if you’re thinking about making a move?  Waiting until next year will cost you more in the long run . Here’s a look at what several experts project for mortgage rates going into 2022. Freddie Mac : “The average 30-year fixed-rate mortgage (FRM) is expected to be  3.0 percent in 2021 and 3.5 percent in 2022 .” Doug Duncan, Senior VP & Chief Economist,  Fannie Mae : “Right now,  we forecast mortgage rates to average 3.3 percent in 2022 , which, though slightly hig...

David Deem 714-997-3486 Dave@DeemTeam.com The 30-year fixed-rate mortgage (FRM) averaged 3.14% for the week ending Oct. 28, according to the latest  Primary Mortgage Market Survey®   (PMMS®) from Freddie Mac. Declining COVID cases and improved consumer confidence, however, are keeping purchase demand strong despite increasing rates. Mortgage details: -   30-year fixed-rate mortgage  averaged 3.14% with an average 0.7 point for the week ending Oct. 28, 2021, up from last week when it averaged 3.09%. Last year, the 30-year FRM averaged 2.81%.   -   15-year fixed-rate mortgage  averaged 2.37% with an average 0.7 point, up from last week when it averaged 2.33%. A year ago at this time, the 15-year FRM averaged 2.32%.   -   5-year Treasury-indexed hybrid adjustable-rate mortgage  (ARM) averaged 2.56% with an average 0.3 point, up from last week when it averaged 2.54%. Last year, the five-year ARM averaged 2.88%. The takeaway: “The yield on th...

David Deem 714-997-3486 Dave@DeemTeam.com Mortgage rates peeked over the 3% threshold for the 30-year fixed-rate mortgage (FRM), marking 3.01% for the week ending Sept. 30.   According to Freddie Mac's Primary  Mortgage Market Survey®,  this is up from last week's 2.88%.   Mortgage details:   -  30-year fixed-rate mortgage  averaged 3.01% with an average 0.7 point for the week ending Sept. 30, 2021, up from last week's 2.88%. Last year, the 30-year FRM averaged 2.88%.   -  15-year fixed-rate mortgage  averaged 2.28%with an average 0.6 point, up from last week's 2.15%. Last year, the 15-year FRM averaged 2.36%.   -  5-year Treasury-indexed hybrid adjustable-rate mortgage  (ARM) averaged 2.48% with an average 0.3 point, up from last week's 2.43%. Last year, the 5-year ARM averaged 2.90%.   The takeaway:   This marks the end of a seven-week streak of either remaining flat or moving slightly. The biggest week-ov...

David Deem 714-997-3486 Dave@DeemTeam.com In today’s real estate market, mortgage interest rates are near record lows. If you’ve been in your current home for several years and haven’t refinanced lately,  there’s a good chance you have a mortgage with an interest rate higher than today’s average.  Here are some options you should consider if you want to take advantage of today’s current low rates before they rise. Sell and Move Up (or Downsize) Many of today’s homeowners are rethinking what they need in a home and redefining what their dream home means. For some, continued remote work is bringing about the need for additional space. For others, moving to a lower cost-of-living area or downsizing may be great options. If you’re considering either of these, there may not be a better time to move. Here’s why. The chart below shows average mortgage rates by decade compared to where they are today: Today’s rates are below 3%,  but experts forecast...

David Deem 714-997-3486 Dave@DeemTeam.com Many people are sitting on the fence trying to decide if now’s the time to  buy a home . Some are renters who have a strong desire to become homeowners but are unsure if buying right now makes sense. Others may be homeowners who are realizing that their current home no longer fits their changing needs. To determine if they should buy now or wait another year, they both need to ask two simple questions: Do I think home values will be higher a year from now? Do I think mortgage rates will be higher a year from now? Let’s shed some light on the answers to these questions. Where will home prices be a year from now? If you average the most recent projections from the major industry forecasters, the expectation is home prices will increase by 7.7%. Let’s take a house that’s valued today at $325,000 as an example. If the buyer makes a 10% down payment ($32,500), they’ll end up borrowing $292,500 for their mortgage. Applying the projected...

  David Deem 714-997-3486 Dave@DeemTeam.com So far this year, mortgage rates continue to hover around 3%, encouraging many hopeful homebuyers to enter the housing market. However, there’s a good chance rates will increase later this year and going into 2022, ultimately making it more expensive to borrow money for a home loan. Here’s a look at what several experts have to say. Danielle Hale,  Chief Economist ,  realtor.com : “ Our long-term view for mortgage rates in 2021 is higher.  As the economic outlook strengthens, thanks to progress against coronavirus and vaccines plus a dose of stimulus from the government, this pushes up expectations for economic growth . . . .” Lawrence Yun,  Chief Economist ,  National Association of Realtors  (NAR) : “ In 2021, I think rates will be similar or modestly higher  . . . mortgage rates will continue to be historically favorable.” Freddie Mac : “ We forecast that mortgage rates will continue to rise through t...

  David Deem 714-997-3486 Dave@DeemTeam.com Mortgage rates are on the  rise  this year, but they’re still incredibly low compared to the historic  average . However, anytime there’s a change in the mortgage rate, it affects what you can afford to borrow when you’re buying a home. As Sam Khater,  Chief Economist  at  Freddie Mac ,  shares : “ Since January, mortgage rates have increased half a percentage point  from historic lows and home prices have risen, leaving potential homebuyers with less purchasing power.” (See graph below): When buying a home, it’s important to determine a monthly budget so you can plan for and understand what you can afford. However, when you need to stick to your budget, even a small increase in the mortgage rate can make a big difference. According to the  National Association of Realtors  (NAR), today, the median existing-home price is  $313,000 . Using $300,000 as a simple number close to the ...

  David Deem 714-997-3486 Dave@DeemTeam.com Last Thursday,  Freddie Mac  announced that their 30-year fixed mortgage rate was over 3% (3.02%) for the first time since last July. That news dominated real estate headlines that day and the next. Articles talked about the “negative impact” it may have on the housing market. However, we should realize two things: 1. The bump-up in rate should not have surprised anyone . Many had already projected that rates would rise slightly as we proceeded through the year. 2.  Freddie Mac ’s comments about the rate increase were not alarming : “The rise in mortgage rates over the next couple of months is likely to be more muted in comparison to the last few weeks, and we expect a strong spring sales season.” A “ muted ” rise in rates will not sink the real estate market, and most experts agree that it will be  “ a strong spring sales season .” What does this mean for you? Obviously, any buyer would rather mortgage ...

  David Deem 714-997-3486 Dave@DeemTeam.com Some Highlights Mortgage interest rates have dropped considerably over the past year, and compared to what we’ve seen in recent decades, it’s a great time to buy a home. Locking in a low rate today could save you thousands of dollars over the lifetime of your home loan, but these low rates may not last forever. If you’re in a position to buy a home, let’s connect to determine your best move in today’s housing market while interest rates are still in your favor.

David Deem 714-997-3486 Dave@DeemTeam.com Mortgage rates fell below 3 percent for the first time in 50 years. The drop has led to increased homebuyer demand and, these low rates have been capitalized into asset prices in support of the financial markets. However, the countervailing force for the economy has been the rise in new virus cases which has caused the economic recovery to stagnate, and this economic pause puts many temporary layoffs at risk of ossifying into permanent job losses. www.DeemTeam.com DRE#01266522

David Deem 714-997-3486 Dave@DeemTeam.com By Suzanne De Vita For the first time, the average 30-year, fixed mortgage rate sank to 3.29 percent this week, according to the Freddie Mac Primary Mortgage Market Survey® (PMMS®). The figure is the lowest recorded in the survey, which began monitoring rates in 1971. The five-year adjustable and 15-year fixed rates tumbled, as well, to 3.18 percent and 2.79 percent, respectively. In an abrupt decision earlier this week, the Federal Reserve cut interest rates in response to the coronavirus, which is drastically impacting markets worldwide. Despite fixed mortgages moving with Treasury yields, not Fed policy, analysts anticipated a significant slide, as well as broader effects in the housing market, including climbing home prices and refinances, and construction setbacks. "The 30-year fixed rate mortgage dropped to its lowest level in more than seven years last week, amidst increasing concerns regarding the economic impact from the...