Local with Lisa

Local with Lisa: Mortgage Rates

July 7, 2022

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A Piedmont native, Emmy award winning television journalist turned home matchmaker, part time radio anchor, UCLA graduate, wife and mother of 3. 

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Lisa talks mortgage rates with Senior Loan Advisor, Brady Thomas

Today we are talking about mortgage rates which have been on a steady climb upward.  In fact rates have almost doubled since the beginning of the year.  Brady Thomas, a loan advisor with LaSalle Mortgage Services breaks it all down for us.

Will mortgage rates continue to go up?

Mortgage rates were around 3% for a 30 year fixed rate mortgage at the beginning of the year. Right now, Brady says rates are around 5%.  Everything right now is affected by inflation. Rates are moving up as a hedge against inflation and as long as we see inflation unchecked Brady expects rates will continue to move up.

Are higher mortgage rates affecting people’s buying power?

This is the highest mortgage rates have been since 2008 and it’s affecting how much people can afford to spend on a home.  Brady says it feels like the word is out that money is more expensive and buyers are reconsidering how much they can spend on a home.

Are mortgage applications down?

Brady says purchase applications are down 15-20% compared to last year.  However, if you compare this year to 2019, Brady says purchase activity is similar to where things were pre-pandemic.

Other loan options

For the last few years Brady says most people have opted for a 30 year fixed rate mortgage.  But now that rates are higher, If you want to keep your monthly payment down, Brady says there are two other loan options to consider.  One is an adjustable rate mortgage and the other is an interest only loan.  Speak to your loan advisor about which option is right for you.

Trends over time

Mortgage rates might seem high now compared to where they were 6  months ago. However, compare current rates to mortgage rate trends over time. Brady says historically over the last 50-60 years, 30 year fixed rates averaged between 7-9%.  So, when you look at the big picture rates are still lower compared to where they have been.

Advice for home buyers

Some home buyers might think they are priced out of the market now and want to wait for mortgage rates to go down.  That’s one option, says Brady, but there’s no guarantee they will go down anytime soon.  Brady says as long as inflation is running high, rates will probably continue to rise.  His advice?  If you find a home you love and you can see yourself living there for the next 7-10 years then there’s never a bad time to purchase.  Brady says people who purchased when rates were higher refinanced once they dropped.

CONTACT ME

Who should I interview next for Local with Lisa? If you have a suggestion I’d like to hear it! Or if you’d like to talk about real estate and want to know your home’s current market value, I’m happy to provide you a complimentary assessment. Get in touch!

For more Local with Lisa, click here.

Insights, stories and interviews about homeownership and living in the East Bay From a Piedmont native, Emmy award-winning television journalist-turned-home matchmaker, part-time radio anchor, UCLA graduate, wife and mother of 3.
Local with Lisa

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I'm Lisa, your new Realtor & friend.

My passion is meeting new people, getting to know them and learning their stories. Before I jumped into the world of real estate, I spent nearly 15 years in front of the camera anchoring and reporting the news. The mix of being a Bay Area native, Emmy-winning reporter and now Realtor gives me a deep understanding of the market and has made me an excellent listener and communicator.

I consider it an honor to work with you and guide you during one of the more important times in your life.

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Lisa Chan Carnazzo

Lisa is a San Francisco Bay Area Realtor with The Grubb Co.

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