Higher mortgage rates suggest improving housing industry
Aug 16 2012 1:47PM
While real estate experts have been urging many prospective buyers of real estate for sale in Los Angeles County and the surrounding areas to begin their home search, reports of higher mortgage rates may prompt more urgent housing market activity.
Data from Freddie Mac's most recent Primary Mortgage Market Survey reveals the average rate for 30-year fixed-rate mortgages has increased for the third week in a row, reaching 3.62 percent, up from last week's average of 3.59 percent. Even with the weekly increase, the average still remains considerably lower than the rate from this time last year, when it averaged 4.15 percent.
In addition, the survey for the week ending August 16 shows the average rate for 15-year FRMs was 2.88 percent, higher than last week when it averaged 2.84 percent. A year ago, it averaged 3.36 percent, indicating becoming a homeowner is still more affordable than in the recent past.
As the economy continues to stabilize, more prospective buyers of properties in Southern California can make the investment with confidence, while higher home prices also allow current homeowners to list their homes for sale without worry.