Last week Yahoo’s Finance page led with a commentary that posed the question, “Why Aren’t Homeowners Taking Advantage of Low Mortgage Rates?” Although the premise (“mortgage rates have plunged back to the lowest levels in at least half a century”) may have been slightly overblown, Costa Mesa home loan shoppers could indeed have found published rates that were at bargain-basement levels.
The author, Doug Whiteman (the editor-in-chief of MoneyWise), calculated that, at end-of-March rates, 11 million U.S. homeowners could have saved at least $3,200 per year by refinancing. Even though many existing Costa Mesa home loans already reflect low rates, with last week’s national 30-year fixed-rate mortgage averaging 3.33%, you’d think refinance lenders would be doing land-office business. Yet last week’s Mortgage News Daily reported that refinance applications had dropped by 19%.
So, why weren’t borrowers stampeding to take advantage? The reasons may not be tied to financial or technical issues at all. Although Whiteman never really got around to directly address the question about why homeowners are “overlooking falling mortgage rates,” it could be as simple as a one-word answer: “distractions.”
With pandemic news clogging the airways and economists unable to clarify the direction of the business outlook—even in the near term—it wouldn’t take a leap of logic to pin any lack of Costa Mesa home loan activity on all the other demands being made on local homeowners’ attention. It might well explain Yahoo’s accusation that “homeowners are snoozing and losing.”
Costa Mesa’s usual high-intensity peak real estate season could fall victim to the same phenomenon—added to the natural human tendency to postpone major decisions until turbulent times subside. Even so, for area homeowners (and home shoppers), the mortgage opportunities are real—no matter how overshadowed by events they may be. Call us for a professional’s undistracted evaluation of the current Costa Mesa real estate landscape!
We are built on a philosophy of Heritage & Hustle. The L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission is to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. The L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, The L3 has grown to a full staff of 25 serving over 300 clients a year. The L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has The L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at firstname.lastname@example.org