Orange County Housing Report: Lock It In!
December 14, 2020
Mortgage rates may be at record lows, but they are poised to increase next year.
The current 30-year mortgage rate is at 2.7%, a 14th record low since March
Today’s mortgage rates are at a record low and they offer the very best deal of the year. Soon, that deal will vanish, and rates will rise, which will impact monthly payments and affordability. Many think the Federal Reserve is in charge of setting mortgage rates, but that is not true. Instead, they set the short term fed funds rate, currently at zero. This rate affects automobile loans, credit card rates, and small business loans, also known as “short term debt.” Long term debt, or 30-year fixed mortgages,…