It seems like forever that TV and radio ads have been boasting about their “near-historical” or “near-record” mortgage interest rates—and they haven’t been exaggerating. Compared with what Costa Mesa home loans have cost in past eras, recent quotes have indeed been exceptionally low. The resulting expansion of “how much house” an individual buyer’s monthly income can prudently support has been a real boon for many local home buyers.
But last week—pretty much out of the blue—came an unexpected blast of terrific news for the Costa Mesa real estate world. Although the source was the usual suspect—the Federal Reserve—it was utterly unanticipated. The already low rates set for the U.S. banking industry’s overnight lending rate wasn’t just going to be cut again. It was going to be double-cut: from 3.75% to 3.02%— twice the usual quarter percentage point.
Reaction from the chorus of blind-sided experts was unanimous. Realtor.com’s “Real Estate News” editors could only say, “Wow! Mortgage Rates Reach Lowest Level in Almost 50 Years.” Even that was an understatement. The “50 Years” qualification made it sound as if a lower rate had ever been offered—but that’s not the case.
Forbes.com was more precise: “Mortgage Rates Dip to Lowest Point on Record.” The “record” is tallied by quasi-governmental Freddie Mac, which had only begun tracking mortgage rates in 1971. Last week’s average marked an all-time low: 3.29%.
The immediate fallout was what you would expect. Overall loan applications rose 15.1% Refinance activity surged 26%. Refi’s were up 224% over the same week a year ago.
The sequence of events was triggered by fears of the financial impact COVID-19 might spark—and the Wall Street volatility it had already set off. For local homebuyers and sellers, as well as for current homeowners who were beginning to reconsider their current Costa Mesa mortgage rates, there was even speculation about the possibility of further declines. Already data firm Black Knight calculated that at an interest rate of 3.25%, “14.5 million high-credit homeowners could shave at least .75% off their mortgage rate” should they refinance.
Any Costa Mesa mortgage rate cut is excellent news for area buyers and sellers. If you’ve been fence-straddling about whether this spring is the right time to launch your own real estate initiative, last week’s news probably looked like a green light—and a signal to give us 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 firstname.lastname@example.org