Quick Update on Home Prices and Mortgage Rates

  • Blue HouseHome price increases have cooled down over the past few months, but are still up over 2% from last year (according to Zillow’s most recent numbers).
  • Over the next year, prices are predicted to rise another 2%.
  • Zillow estimates the median value for homes in LA County is about $698,000.
  • Rates are still very low, almost a full 1% lower than at the start of the year, though they seem to be creeping up.

For Homebuyers this means:

  • Waiting for a home price dip in the coming year, doesn’t seem to be a winning strategy.
  • Mortgage payments are more affordable now. And, it doesn’t appear that there will be a “better” time to buy next year.

For Homeowners:

  • You may be over-spending on your mortgage payments and should consider refinancing at a lower rate.
  • It may be worth refinancing to consolidate higher-rate second loans into a fixed, lower-rate first loan.
  • You could take funds from your home for home improvement or bill consolidation at lower cost than credit card rates.

If you are curious about how much house you can afford to purchase or what you could save in a refinance, please give me a call. It only takes a few minutes to give you the information you need to make a wise choice.