Following several years of historically low mortgage rates nationwide, the much-anticipated rise in rates may be starting. While Pasadena has enjoyed a flourishing real estate market, it has also seen dramatic lows in inventory — low mortgage rates or not.
According to Bankrate.com, for Thursday, February 17, 2022, the average 30-year fixed-mortgage rate is 4.23%, an increase of 25 basis points from a week ago. The national 30-year refinance rate is 4.24%, up 23 basis points since the same time last week. Meanwhile, the average 15-year fixed refinance rate is 3.57%, up 20 basis points since the same time last week.
At least one local mortgage broker, however, acknowledges that even with a rise in the prime rate, local buyers are still enjoying lowered interest rates in a home purchase when and if they can find a home to buy.
“They’re not rising today, but they are rising,” said Rob Levy, area manager and mortgage loan originator at HomeBridge Financial, “and we knew that they would. It’s hard to speculate whether they will continue to rise, or whether they will flatten out.”
In terms of the effect of higher rates on the local market, Levy said winter is a slower time of year, traditionally,, but the market is still seeing very limited inventory and multiple offers on virtually every house.
“And,” he adds, “ we are still at historic low rates. Yes, it’s not 3%. They’ve gone up, but it’s still an incredibly low rate.”
Thus, Levy is reassuring to that buyer who may be ready to dive into a home purchase, but might be suddenly scared away by the rise in rates.
Says Levy, “I just tell them, ‘We’re not at the lowest rates we’ve ever been, but we are still historically low. Rates were bound to go up at some point and it’s not like this was some big surprise.”
And Levy wants to make it clear that the current rates are still “amazing.”
As he recalled, “I can remember a few years ago, when we were quoting 4% and everyone was saying, ‘Wow, that’s amazing. Four percent on a fixed-rate loan!’ And then they went to 3% and everyone was angry that they got four.”
Rates were incredibly low for a very long time, stressed Levy, and they still are, he says.
‘So if you find the house of your dreams,” he added, “and you’re ready to buy, I wouldn’t hold off. It’s still a great time.”.