Costa Mesa Mortgage Interest Rates Reflect European Conflict
For both sellers and the house-hunters they wish to attract, Costa Mesa mortgage interest rates have played a key role in enabling attractive real estate propositions. It is, however, an element that has been expected to weaken in the coming year as anticipation of rate hikes grows. With every notch up in Costa Mesa home loan rates, buyers will have to pencil in higher monthly payments. That would gradually remove one of the key elements that has energized the market.
But the story last week did not follow that script. By last Thursday, mortgage giant Freddie Mac was quoting U.S. average 30-year fixed loan rates at “3.76%. That not only remains in historically low territory—it’s even a drop from the previous week’s 3.89%.
Just ‘why’ was cause for speculation—but most commentators pointed to events in Europe:
- The Wall Street Journal reported that economists and analysts named the conflict in Ukraine as the dominant reason. “Investors tend to gravitate toward…safer investments during times of upheaval,” they said, pointing to evidence that funds were being diverted into the mortgage market.
- The Mortgage News Daily found that risk-inducing geopolitical events “create buying demand for safe haven assets”—like the bonds that fund mortgages.
- Moody’s Analytics agreed that “the invasion could lead to a short-term decline in mortgage rates”—a prediction that seemed to be borne out.
- CNBC’s Diana Olick found that the war in Ukraine explained a lot. Although mortgage demand had stalled, that was “likely to change quickly” because “rates are now falling fast due to the Russian invasion.”
Even so, the longer-range outlook was bound to return to form. Editors at the Business Insider predicted that, despite recent dips, rates were likely to increase “in March and beyond.” Their recommendation: “it may be a good time for homebuyers to start shopping around and lock in a rate.” If your own plans include taking advantage of Costa Mesa mortgage interest rates at favorable levels, that looks to be sound advice—as is another: 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 info@thel3.com
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