The 2020 housing market is off to a good start, the mortgage rates have remained stable. The 30-year fixed rate mortgage (“FRM”) dropped from 3.74% to 3.72% as of January 2, 2020. In a similar vein, the 15-year FRM dropped from 3.19% to 3.16%. Finally, the 5/1 adjustable- rate mortgage (“ARM”) increased from 3.45% to 3.46%. Looking at the big picture, the 2020 mortgage rates are .8% lower than this time last year; this is good news for those who were concerned the housing market was on shaky grounds (indeed, people have been predicting a housing crash since around 2015; these numbers don’t suggest that is happening any time soon).
As a general rule, mortgage rates typically track the 10-year treasury note, which dropped .05%. This is a bit confounding, as the stock market has been breaking records for awhile now. The practical implications of stellar mortgage rates from the get-go is that that the home buying season may open earlier than usual, as buyers are able to get more bang for their buck (lower rates mean the cost of a loan over its lifetime are lower). If you are considering purchasing a home in Encino, Sherman Oaks, Tarzana, or Studio City, the time to contact the Chernov Team is now. Mortgage rates won’t go much lower – not because there is anything wrong with the market, but because it simply can’t go much lower.
At the Chernov Team we understand that knowledge is power, and knowledge about how the market is behaving is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.