LA Home Mortgage Rates Still Reasonable
According to DataQuick (DQNews.com) – a company that monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts, California mortgage rates continue to rise, but are not at their peak yet.
“The typical monthly home mortgage payment that California buyers committed themselves to paying last month was $1,456. Adjusted for inflation, last month’s payment was 37.0 percent below the typical payment in spring 1989, the peak of the prior real estate cycle. It was 48.9 percent below the current cycle’s peak in June 2006. It was 58.0 percent above the January 2012 bottom of the current cycle.”
This shows that market distress continues to decline. While home mortgages are more difficult to obtain, they are not impossible and rates are still relatively low. In addition, “foreclosure activity remains well below year-ago and peak levels reached several years ago. Financing with multiple mortgages is low, while down payment sizes are stable.”
According to the Los Angeles Times, “Southern California home prices stayed flat in August for the second straight month, an indication the market may be normalizing after a period of torrid price hikes.”
In addition the article reports that, “The median is still up a whopping 24.6% from August 2012. Home values have shot up sharply this year as buyers rushed into the market, lured by historically low home mortgage rates and prices. They found few homes for sale amid crushing demand — supercharged by competition from cash-laden investors. The cooling off comes amid expanding supply and higher home mortgage rates.”