Is now a good time to buy a new property in Manhattan Beach, Redondo Beach, Hermosa Beach, or other areas of the South Bay? Or are rising mortgage interest rates good reasons to hold off on that purchase for now?
The answer to this question is that now is still a good time to buy! Mortgage rates may be up, but they are still very low when you look at them from a historical perspective. To give you a better idea, the mortgage rates we see today are extremely similar to rates in 2010 and 2011. Back then, everyone believed we were at the “bottom” of the housing market and prices were at their lowest point. No one wanted to miss out on the opportunity to invest in South Bay property at lowered prices. Existing home owners were also excited to refinance their 5 and 6 % mortgages for 4.5%. If it wasn’t for the fact that in 2012 rates dropped into the 3%’s people would still consider today’s home loan rates extremely low. There is now the perception that rates are somehow high, but they are still very very low compared to an average real estate and mortgage market over a 20 or 30 year period.
Yes, rates are slightly higher than they were a few months ago, but home values are increasing again, making the purchase of a home a great investment that is now once again an asset rather than a stable liability. If you have any questions about getting a mortgage loan for property in the South Bay and beach cities, feel free to contact me at any time.