BEVERLY HILLS—On August 4, Realtor.com reported that mortgage rates in Beverly Hills, California are at 6.53 percent for 30-year fixed loans 5.67 percent for a 15-year fixed loan for a 5-year Adjustable Rate Mortgage (ARM). Today’s mortgage rates have risen considerably since 2020.
On August 2, The National Association of Realtors, Lawrence Yun, reported on the state of Mortgage rates in his Blog, The Economist.
“Mortgage rates are plunging on the news of weak job growth and rising unemployment. The 4.3% unemployment rate is the highest since coming out of the COVID lockdown and higher than the 3.5% unemployment rate right before the COVID-19 arrival. The hourly wage gain of 3.2% is the weakest in 3 years,” Yun continued.
“The 30-year fixed mortgage rate looks to fall to 6.5% or even lower in the upcoming weeks. That is what the 10-year bond yield suggests, which plunged to 3.8% this morning, compared to 4.8% a few months ago.
The 100-basis-point change in mortgage rates generally means around a $300 lower payment on a typical mortgage. Home buyers who were priced out a few months ago should re-check whether they can enter the home buying market if they have secure jobs.”
More details may be found on the National Association of Realtors website.
The following is an AI overview of 2024 mortgage rates.
“As of July 30, 2024, mortgage rates in Beverly Hills, California were 6.92 percent for a 30-year fixed loan, 6.05 percent for a 15-year fixed loan, and 7.16 percent for a 5-year ARM.”
Mortgage Bankers Association (MBA) predicts rates to decline to 6.8 percent in the 3rd quarter.
Realtor.com predicts 6.8 percent in 2024 and a dip to 6.5 percent by the end of the year.
Fannie Mae anticipates a 30-year rate of 6.7 percent in the fourth quarter of 2024.
In a March 29, article written by Kevin Graham of Rocket Mortgage entitled, Historical Mortgage Rates, 1971 to the Present, Graham wrote the following.
“By looking at all the historical mortgage rate data available from Freddie Mac, a trend becomes clear: With the exception, of a spike in the 1980s rates have gotten lower every decade – until now. The average rate in 1971 was 7.54%. In 2020, the average rate was 3.11%, and it may be a while before rates go this low again.
As of the final week in September 2023, the average interest rate on a 30-year fixed-rate mortgage was above 7.3%, with the potential to rise even further this year.”
On July 20, MarketWatch reported the following information. The full text may be found on their website.
“Former President Donald Trump and current President Joe Biden both say they will work to bring those costs down.
“Trump’s claim that home prices are unaffordable is true in many parts of the U.S., according to data from the Federal Reserve Bank of Atlanta’s Home Ownership Affordability Monitor. As of April 2024, the most recent period for which data was available, affordability fell 7.1% from a year ago, the Fed said.
For a household earning a median income of $81,144, buying a median-priced home at $376,000 with a 30-year rate of 7% would translate to a $2,250 monthly mortgage payment of just principal and interest. That amounts to roughly 43% of the household’s income, which is considered unaffordable. Housing is considered affordable when the cost amounts to no more than 30% of a household’s gross income.”
By Sharon