San Diego Mortgage Rates are on the rise. Should You Wait to Buy?
San Diego Mortgage Rates are on the rise. Should You Wait to Buy?
National mortgage interest rates and local San Diego mortgage rates, as reported by Freddie Mac, have increased by close to a quarter of a percent over the last several weeks. Freddie Mac, Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors are all calling for mortgage rates to rise another quarter of a percent by next year.
In addition to the predictions from the four major reporting agencies mentioned above, the Federal Open Market Committee recently voted “unanimously to approve a 1/4 percentage point increase in the primary credit rate to 2.75 percent.” Historically, an increase in the primary credit rate has translated to an overall jump in mortgage interest rates as well.
This has caused some purchasers to complain that they may no longer be able to get a rate below 4%. The truth is that even between 4-5 percent, current rates are still at historic lows. If you decide to wait longer, you might find yourself paying an even higher rate in the future.
Here is a chart showing the average mortgage interest rate over the last several decades.
Finally, we often get asked “How much mortgage do I qualify for?” And we’re happy to help you find out. Let our team give you guidance and help you pre-qualify for a home loan.
For more information on where San Diego mortgage rates are headed, feel free to reach out to us to setup a confidential meeting in one of our offices located in the greater San Diego area. Even if you are not ready to purchase right now, there are steps you can take to position yourself for a home purchase in the near future.
