How Changing Mortgage Rates Can Affect You – Plus a Look at Real Estate in Los Angeles and Beverly Hills, CA | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
The impact of mortgage rates on the real estate market cannot be overstated, and it’s important to understand how these rates affect your purchasing power when considering buying a home. In 2021, the 30-year fixed mortgage rate has been bouncing between 6% and 7%, and even a slight change in rates can have a significant impact on your monthly mortgage payment.
Even a 0.5% change in mortgage rates can affect your monthly payment, and this is especially important to consider in areas with high home prices, such as Los Angeles and Beverly Hills, CA.
According to Zillow, the median home value in Los Angeles is $810,973, while the median home value in Beverly Hills is a staggering $3.5 million. With such high home prices, even a small change in mortgage rates can impact your ability to purchase a home in these areas. It’s important to work with a knowledgeable real estate agent who can help you navigate the market and find the right home within your budget.
It’s also worth noting that while you may be tempted to put your homebuying plans on hold in hopes that rates will fall, timing the market can be risky. Real estate market conditions can be unpredictable, and waiting too long could mean missing out on your dream home. This is especially true in highly competitive markets like Los Angeles and Beverly Hills, where inventory is often low and demand is high.
Ultimately, if you’re considering buying a home in Los Angeles or Beverly Hills, it’s important to work with an experienced real estate agent who can help you navigate the market and make informed decisions. With their expertise, you can develop a strong plan that takes changing mortgage rates into account and find the home of your dreams.
Call Christophe Choo at (310) 777-6342 to tour your future home “HERE” or click “HERE” to estimate your home value
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