Since the beginning of the pandemic, we’ve been tracking the highs and lows of mortgage rates on this blog. In 2020, we saw week after week of record-breaking cheap rates that triggered a home-buying frenzy. As we started returning to a semblance of pre-pandemic life this year, rates swung back up-up-up and continued to climb.
Now, we’re in June, and for the third week in a row mortgage rates have dipped back down ever so slightly, which some experts hope that this a sign of the market beginning to normalize. On June 2nd, Freddie Mac announced the average rate for a 30-year loan was 5.09%, down just a hair from last week’s 5.1%. Borrowing costs are still up about 2% compared to the end of 2021, cooling down a red-hot real estate market and causing one in five sellers to minimize their listing price during the month of May.
“Heading into the summer, the potential homebuyer pool has shrunk, supply is on the rise and the housing market is normalizing. This is welcome news following unprecedented market tightness over the last couple of years,” said Sam Khater, Freddie Mac’s chief economist.
Though this is a positive sign, housing prices are still at an all-time high, especially in Los Angeles. Luckily, if you’re a first-time buyer, California has a new program to help you secure the money you need for a down payment. To learn more about it, check out our blog on the topic, or email us or give us a call at (323) 412-9060 and we’ll help you figure out how to take advantage of this exciting new program!