For those who’d been monitoring Costa Mesa mortgage rates ahead of last week’s Federal Reserve interest rate cut, the news that followed was confusing. The Fed’s decision to lower their overnight lending rate for the first time since the Great Recession commanded first page headlines—but the details that followed provided little clarity.
For homeowners pondering selling or mortgagees thinking of refinancing or applying for a line of credit, the question was whether now was the optimal time to take advantage of the bargain interest rate environment…or…?
First were reports on the fallout from Wednesday’s ¼ point drop in the Fed’s benchmark overnight borrowing rate. Wall Streeters didn’t seem to like it—not because it wasn’t good for borrowers of all stripes, but because they’d hoped for an even greater cut. Not just that—there was confusion on the actual fallout Costa Mesa mortgage seekers might now encounter.
By week’s end, The Washington Post reported, “Mortgage rates pause as markets digest impact of Federal Reserve meeting.” In other words, home buyers expecting a drop in rates would have to wait for that to happen.
Bankrate.com had a different take—an even more sour one: “Mortgage rates move upward for Friday.” By their lights, Friday’s prospective buyers might expect a slight bump in rates (though they’d still be in the historically low range). They turned out to be wrong.
But wait! The New York Times had excellent Friday tidings: “Mortgage Rates Are Already Lower,” they printed. Their take was joined by industry insiders like the Mortgage News Daily’s, who closed out the week with “Mortgage Rates Are Actually Much Lower Today.”
Why was the reporting so scattered? MNW’s Matthew Graham offered the best explanation. The bonds which underlie mortgages had been slow to budge until late Friday—when mortgage rates dropped “to new multi-year lows.” Graham noted that Friday’s improvements “were driven almost entirely by lenders simply catching up with yesterday’s moves.”
With lenders notching rates down, the implications for Costa Mesa home sellers and buyers once again present a spectacularly appealing picture. Many people will take advantage of the opportunity. For specifics on how, what, and where—give L3 a call!
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 email@example.com