Understanding the impact of mortgage interest rates can mean a lot to an Irvine family’s pocketbook. In fact, a family could save about $950 per month by purchasing a new home now compared to this time last year.
The question then becomes, “Is now the right time to buy?” The numbers suggest that the answer is yes.
Interest rates currently hover around 3.4% for a 30-year mortgage. That’s a drop of more than 1 percentage point from this time last year. According to data from leading market intelligence firm Metrostudy, the difference saves buyers about $950 each month – totaling an astounding $214,000 over the life of the loan.
However, these rates are forecast to move up. This fact may be driving some homebuyers to the market from the sidelines.
Housing market forecast is strong
While interest rates are influenced by a number of economic factors, the local home market is still driven largely by supply and demand.
Metrostudy data also shows that demand currently outpaces supply. In fact, the numbers show that there will be more buyers in the region than homes for sale. That drives and sustains values of new homes in Irvine.
Combined with low rates, this could make it the ideal time to buy.
“We know that home values in Irvine will grow because of the great schools, parks and safety,” says Dr. Lee, who recently purchased a new home in Orchard Hills with his family of five. “These low rates made a lot of financial sense for this long-term investment.”