Will Creeping Mortgage Rates Affect Corona Real Estate?
Graham & Kelly Levine May 25, 2013
We knew it would happen. Mortgage rates have been at historic lows for years. Now, as the Corona real estate market begins to improve, rates are slowly starting to rise. Even though mortgage rates are slowly creeping higher, Freddie Mac reports that they are still low enough to allow high home-affordability for your Corona home. In fact, home sales in Corona have increase month over month, and there is even new construction being built to keep up with the demand of prospective home buyers.
The Primary Mortgage Market Survey® (PMMS®) reported the average 30-year fixed-rate mortgage (FRM) at 3.59% (0.7 point) last week, which is still lower that the average rate of 3.78% a year ago. The current average 15-year FRM came in at 2.77% (0.7 point), versus the reported 2012 rate of 3.04%.
The mortgage rate increase has been gradual and is not expected to affect your Corona real estate, or your home sale at this point.
Frank Nothaft, vice president and chief economist, at Freddie Mac, responded to the higher mortgage rates, saying, "While this may slow some of the refinance momentum, rates are nonetheless low and home-buyer affordability high, which should further aid home sales and construction in coming weeks. For instance, in April, single family housing permits rose to the strongest pace since May 2008 while existing home sales for the same month grew the most since November 2009. Moreover, the National Association of Realtors® reported that the median number of days on the market for these sales fell from 62 to 46 days, the fewest since it began collecting the data in May 2011."
Little change was seen in the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM), shown at 2.63% (.5 point) for May 23, 2013 as compared to 2.83% for the same time period last year, and the 1-year Treasury-indexed ARM is currently averaging 2.55% (0.4 point), while last year it came in at 2.75%.
To read more about the housing market and review current and historic mortgage rates, please click here.
For more information on Corona real estate, the housing market, and homes for sale- contact Graham and The Home Team at (951)534-9296, or email us.
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