Main Content

Mortgage Rates Keep Going Down!

The Real Deal

Everything Real Estate in the San Fernando Valley
Friday February 7, 2020
Mortgage Rates Keep Going Down!

Yesterday’s mortgage rates represent the lowest they have been since before the 2016 primary election. Specifically, the 30-year fixed-rate mortgage (“FRM”) dropped .06% from 3.51% to 3.45%. The last time we saw numbers this low was October 2016, when it sat at 3.42%. As is typically the case, the 15-year FRM dropped .03% from 3.0% to 2.97%. This is the first time since 2016 that the 15-year FRM is under 3%.

This decrease represents the third consecutive week where mortgage rates have dropped, and buyers have taken note. There has been a significant surge in demand for houses over these last few weeks, making it a Seller’s dream come true; this trend is likely to continue for the next few months. Here at the Chernov Team, our listings are receiving record-breaking numbers of offers.

We don’t know how much stock to put in the doomsday theorists who speculate that some type of crash is just around the corner, but, we do note that “some kind of crash” has been “just around the corner” since at least 2015.  

Notably, during Q4 of 2019, most major metropolitan areas saw an increase in their affordability index. This was driven, in large part, by low mortgage rates. As 2020 is likely to bring a little more stability to interest rates, and affordability will only increase if more homes are built, California has legislation that will effectively guarantee more houses will be built. Thus, in California at least, affordability will become less of an issue, making it easier for everyone to buy, or sell, a home. 

At the Chernov Team, we understand that knowledge is power, and knowledge of how mortgage rates are 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.


Stay Connected

Sign up to Access:

Exclusive private listings S.F. Valley market insights VIP events

    Thanks for signing up!
    By signing up you agree to our Terms & Conditions

    More Blog Posts

    To Love
    Friday January 31, 2020

    According to a report issued by Harvard’s Joint Center for Housing Studies, the era of the broke 20 year old rent...

    Read Full Post
    Wednesday January 29, 2020

    Frequently, things that seem like common sense are actually incorrect. Today we will briefly discuss the incorrect ...

    Read Full Post
    Monday January 20, 2020

    On Friday, Governor Gavin Newsom reaffirmed his commitment to affordable housing by unveiling a proposed budget tha...

    Read Full Post
    Friday January 17, 2020

    Like all things, homeowners associations (“HOAs”) have both good things and bad things about them. The HOA typi...

    Read Full Post