Southern, CA Mortgage Rates Climbing in 2018
As mortgage rates in southern California have continued to rise for almost a year, so have the concerns for buyers.
In Long Beach, home values have gone up over 6.8 percent this past year according to the real estate website Zillow, which also estimates prices will continue to rise 1.2% in the next year.
With the average 30-year fixed-rate mortgage at 4.2% and climbing, some who were in a position to buy are now forced to revisit, or at least reposition their home purchase.
DO NOT DESPAIR!
According to economists, while we may be at the peak of growth, we are not in a bubble. It may feel like the best deals are behind us, but rates are still relatively low compared to fall outs like the 2007 housing bubble and corresponding crisis. During this period, the average rate for a 30-year fixed-rate mortgage reached 6.3%. We’re far from that point. And for most, it isn’t too late. There are plenty of great buys and up-and-coming neighborhoods to explore.
Yes, the increase in home prices and changes to the economy can complicate things, but there are numerous mortgage programs and financial services groups in place to address those very issues. After all, this housing market growth is what comes with a growing economy!
FOCUS ON YOUR SITUATION
Greg McBride, Chief Financial Analyst for Bankrate.com explains that prospective buyers need not worry about the mortgage industry or who else is looking to buy.
Getting approved won’t be any more challenging than in previous months. It is more important to focus on “how much house you can afford.” Being realistic here and planning accordingly will better position you for a more manageable mortgage.
If you find yourself in the common situation of having your mortgage application declined late in the process due to the property not appraising for the negotiated price, don’t panic. This may mean more work is ahead, but can also prevent you from overpaying at the end of the day.
ASK FOR HELP
Professional assistance goes a long way. We can guide you through the process.
Financial Solutions of California
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