Activity in the Los Angeles real estate market could pick up slightly as the summer begins, with mortgage rates easing in the week ending June 20.
Both 15- and 30-year fixed-rate mortgages saw averages drop slightly, as markets awaited the Federal Reserve's monetary policy announcement, according to Freddie Mac's latest Primary Mortgage Market Survey.
"Mortgage rates were relatively unchanged this week as market participants awaited the Federal Reserve's (Fed) monetary policy announcement," said Freddie Mac vice president and chief economist Frank Nothaft. "The Fed stated that economic growth has been expanding at a moderate pace and that labor market conditions have shown further improvement, although the unemployment rate remains elevated."
Home sales in Southern California hit a seven-year high in May, according to DataQuick, and June could prove to be another strong month with rates keeping affordability high.
Slightly more than 23,000 homes were sold in the six-county Southland during May, a 7.6 percent bump from the previous month and 3.8 percent year-over-year increase.