Mortgage rates fall to new lows, putting buyers with good credit in prime position
By Vicki Johnson
After watching mortgage rates fall to historic lows over the last few months, homeowners may be surprised to learn that rates across the nation are still on the decline. According to a report from USA Today, the average fixed mortgage rate on a 30-year loan fell last week from 3.84% to 3.83% — bringing us back to market conditions unheard of since long-term mortgages began in the 1950s. In addition, 15-year mortgage rates also dropped, dipping to 3.05%.
One might imagine such numbers to be the ideal fuel to fan the flames of a housing market recovery. But the truth is, sales are still sluggish. One the main reasons behind low home sales this spring is the fact that the best mortgage rates only apply to those with the best credit; and while this may keep some buyers from cashing in on the perfect marriage of low home prices and low mortgage rates, it also poses a prime opportunity to those in a position to snag an affordable loan.
The Wall Street Journal recently covered banks’ stricter standards for issuing mortgage loans, noting that the average credit score for qualified applicants hovered around 750. Those with scores under 740 may still be able to get loans; but they will likely miss out on the savings afforded by current interest rates. In short, there couldn’t be a better time for prospective buyers with good credit to start shopping for a home. Even in desirable San Diego markets like La Jolla, the combination of reduced prices and exceptional mortgage rates make it possible to find a great value – especially with the help of an experienced real estate agent.
Navigate the market and come out on top: contact a local real estate agent today
As a seasoned real estate agent with specialized expertise in the La Jolla housing market, I would encourage anyone with a qualifying credit score and dreams of home ownership to seize the opportunities presented by today’s market conditions. Buying a home in La Jolla is a big decision, and a substantial investment; but with the right guidance and negotiating power on your side, you can find the perfect property to suit your needs – and rest assured that you got the best possible value.
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