Home-buying season is in full swing now, and Silicon Valley property remains as desirable as ever. While high demand is also keeping prices high, there is good news for people shopping for Silicon Valley real estate. Mortgage rates have hit their lowest point in three years. As of May 10th, the national average mortgage rate was 3.6 percent for conforming mortgages. This is a drop of two basis points from the week before and offers buyers significantly more buying power than at the end of 2015. Economists expect that mortgage rates will remain under four percent throughout the summer and into early fall. The best predictions are that rates will finish up at about 4.21 percent at the end of the year.
Credit Markets Tight for Silicon Valley Real Estate
While this is good news, anyone searching for Silicon Valley property has to remain on top of mortgage rates, as they are expected to fluctuate, and even small differences in interest rates can add up over the life of the loan. Working with an experienced real estate agent or broker is a must so that real estate buyers will get the best rate. The other possible downside to low mortgage rates is that banks will require consumers to have higher credit scores. Feel free to contact our office if you need help navigating the tight Silicon Valley market.