Mortgage Rates Reach a Historic Low in Los Angeles
by Rebekah Bell
From a global pandemic to a national economic downturn, 2020 has been a difficult and unprecedented year in many ways. But for prospective homeowners in the City of Angels, there’s a silver lining: Mortgage rates have reached a historic low, which means there’s never been a better time to purchase a property if homeownership is on your bucket list. Here’s everything you need to know about mortgage rates in Los Angeles … and why now might be the perfect time to snap up that dream listing you’ve had your eye on.
Mortgage Rates Have Never Been Better
According to Zillow, the average price of a home in Los Angeles County is $694,387. Because many buyers aim for the traditional 20 percent down payment, socking away enough money to reach that threshold can be a barrier. Thankfully, mortgage rates have been decreasing throughout the year, which means buyers can get a far better rate and save thousands of dollars throughout the course of their home loan. That means buyers mainly need to worry about the logistics: Do you want a condo or a single-family home? What are your ideal neighborhoods? How many bedrooms do you want? What type of amenities do you have your heart set on?
L.A. Mortgage Rates Are at a Historic Low
Data from Zillow reveals that mortgage rates on a 30-year fixed-mortgage in California are now at 2.80 percent, down from 3.45percent before the pandemic rocked the housing market in March. In fact, the new average is the lowest for a 30-year fixed mortgage since Freddie Mac started tracking rates in 1971. This consistent decline of mortgage rates provides a great opportunity for house hunters looking to purchase a property at the most affordable mortgage rate in more than 40 years. It also enables current homeowners to refinance into lower-rate loans, which can lower their monthly payments and, in certain cases, even allow them to access extra cash from the equity in their home. Lower mortgage rates for both new loans and refinancings can provide a much-needed economic boost through driving up consumer spending.
You Don’t Have to Figure It Out on Your Own
If hearing about low mortgage rates makes you eager to buy a home (but also overwhelmed by all the logistics), don’t despair. Unless you have a background in finance or real estate, understanding all the complicated ins and outs of calculating mortgage rates and home loans can feel foreign. Thankfully, working with a good real estate agent can help eliminate those issues and ensure you’re getting the best possible deal.
Recognized as the top 1 percent of real estate agents in Silicon Beach, the Suarez Team is knowledgeable, friendly and ready to help walk you through every step of the home-buying process. From determining how much house you can afford to making sure you get the best possible interest rate, our dedicated team will work with you to answer any questions you have and to help you find the home of your dreams.
Rebekah Bell is a writer who lives in Los Angeles.