Rising Mortgage Rates in Los Angeles and Beverly Hills: What You Should Know
Rising Mortgage Rates in Los Angeles and Beverly Hills: What You Should Know | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
As we move into 2023, mortgage rates in Los Angeles and Beverly Hills have started to rise after a steady decline over the winter. This may be concerning for potential homebuyers as higher mortgage rates and prices have made homes less affordable. If you’re planning to purchase a home this year, you might be wondering if now is the right time to buy or if you should wait until rates come back down.
The recent uptick in rates can be attributed to what’s happening with inflation, according to Joel Kan, Vice President and Deputy Chief Economist at the Mortgage Bankers Association (MBA). He explains, “Mortgage rates increased across the board last week, pushed higher by market expectations that inflation will persist, thus requiring the Federal Reserve to keep monetary policy restrictive for a longer time.”
Currently, the most recent weekly average 30-year fixed mortgage rate reported by Freddie Mac is 6.5%. This is the third week in a row that rates have increased, putting them at the highest point they’ve been this year.
If you’re considering putting your home search on hold due to rising mortgage rates, it may be worth reconsidering. The recent decline in mortgage applications by 13.3% in just one week suggests that the increase in mortgage rates is causing potential homebuyers to pull back on their search for a new home. This could be an opportunity for you to purchase the home you’ve been searching for with less competition among other buyers, which is a welcome relief in a market that has so few homes for sale.
In conclusion, while mortgage rates in Los Angeles and Beverly Hills have risen over the last few weeks, it doesn’t necessarily mean you should delay your plans to buy a home. In fact, it could mean the opposite if you want to take advantage of less buyer competition. To explore the options in our local market, let’s connect today.
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