A number of factors can potentially impact the mortgage rate of a state. In Southern California, there have been a few recent updates affecting mortgage rates.
What are the Updates?
As a result of international instability, the 30-year fixed mortgage rate has been rising steadily in the recent past, from historic lows. In the past week, rates for the 30-year fixed mortgages were at 3.65%. Another change was in the 15-year fixed mortgage rate which is now at 2.84%. The 5/1 ARMs rate is at 2.69%.
Overall, there has been a slight increase in mortgage rates in recent weeks. However, even with these recent rate increases, mortgage rates have remained lower since beginning of May. There is no dramatic increase or decrease in rates expected to take place any time soon in Southern California. Newly released inflation data are yet to show any impact on the mortgage rates in Southern California.
How the Changes Affects Mortgage Rates
Individuals who had borrowed money using the fixed mortgage rates will of course, not be affected with the changes. As for 5/1 ARMs, there may be an increase in rate and payments if the fixed term for a home owner is due to expire any time soon while rates are still slightly higher than they were.
However, the overall effect is not as significant as with other states. At least for mortgage rates in SoCal, residents can easily follow the trend and take appropriate actions as and when needed.