There is no question that mortgage rates for home purchasing are at historic lows. Currently settling between 2.6 and 2.8 percent for a 15-year fixed mortgage, the rate averages have been in a tailspin downward since the early 2000s when a home purchase was easily in the mid-5 to 6 percent range for the interest financing charge. Much of drop has had to do with quantitative easing imposed by the federal government, thereby driving down the rates charges on mortgage-backed securities which are also the main driver of mortgage rates.
However, as many have expected with the economic recovery, rates are slowly starting to rise again and may soon break the symbolic 4 percent mark. Much depends on how fast the Federal Reserve steps out of quantitative easing and how fast, as well as how well the home-buying market performs in the warm season.
Given the potential surge in buying like to occur as rates get closer to 4 percent, with buyers trying to lock in or refinance historically low rates before they go away, real estate agencies in the Southern California-L.A. region can be professionally supported by Brighton Escrow Service as an expert escrow agent for sales and related fund transfers. Contact us for more information in escrow account management for sales.