Mortgage rates are currently at their lowest point in a year and further declines may be on the horizen. This is making borrowing more affordable for consumers who have been battling rising home prices for years. A new study has found that more than 257,000 Southern Californians could theoretically qualify to buy an entry level home due to today’s low mortgage rates.
The analysis, conducted by John Burns Real Estate Consulting LLC, studied households in Southern California that could now afford to buy a home without exceeding 33 percent of their monthly income on a mortgage payment. Lower mortgage rates helped qualify more than a quarter million residents.
Nonetheless, it remains that less than a third of households in the region can afford an entry-level home.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.