It seems like the market is starting to pick up again. Mortgage rates have improved tremendously, and are now in the low 6%’s for a 30 yr fixed-rate mortgage. It’s really not too far off from a year ago, so this talk of the industry being dead might have been far-fetched. Sure it’s saturated, but it seems to still be alive and kicking.
I think the problem is that rates were sooo very low a few years ago that people think a rate of 6% or 7% is high. But historically, rates are still very, very low and a are still a great deal for anyone who owns a home. Rates used to be 18-20% in the 1980s! I guess the only real problem seems to be the inflated price of real estate around here.
Many have said the refinance market is over, but now the purchase market seems to be making a small comeback. I’m so used to pricing out refinances that it’s strange to hear the word purchase so often now. It seems the market may have corrected itself, but I still think real estate prices are too high in California. People are even talking about discounted home prices in and around Los Angeles. I think it might be the right time to buy in other states like Washington and Texas, but around here it doesn’t feel like the right time just yet.