Every time we see the 10 year treasury rate yield move higher it drops back below its 50 day moving average. This means current California FHA mortgage rates are not going to pop to levels well above 4%. Many mortgage lenders throughout the United States have reported 30 year fixed conventional fixed rates around 3.75% for the final two weeks of July. These are not the lowest levels of the year but they are still quite affordable when looking at a historical chart of interest rates over time.
Most borrowers that could have refinanced have completed the process. The only reason they would want to refinance now is if they could save one full percentage point on their current mortgage. If a homeowner has a mortgage rate around 5% it would be smart to consider refinancing today. With the hot real estate market in California a large number of first time homer buyers are willing to make the leap and buy their first home. Areas in and around Los Angeles and San Diego have seen tremendous growth in home prices over the last few years.
Remember that any type of financial decision is a risk. When buying a home the risk is expanded by a multiple of 10 or 20 simply because most loan terms are 15 to 30 years. A bad decision on a car loan will only haunt you for four or five years and likely less than $30,000. A bad decision on a mortgage loan could force some into bankruptcy. This is why it is important to work with a lender that understands your current financial situation. There are a number of mortgage brokers and lenders that will be more than willing to sit down with you and crunch the numbers.
Using a mortgage calculator to determine how much house you can buy as well as the monthly mortgage payments is a very wise decision. You should never go into the home purchase process blind. While some people will drive to the car lot after work and pick out a new car that is going to cost 1/10th of a home. There are also ways to sell a car on Craigslist or AutoTrader. When it comes to buying and selling a home the process is a little more difficult.
As we roll into August it will be interesting to see where mortgage interest rates go. As of today, the lowest 30 year fixed mortgage rates are under 4%. Check out some of the big names like Bank of America, JP Morgan Chase, Citibank and Wells Fargo but do not stop there. There are some wonderful mortgage brokers throughout the United States that will shop around for the best rate for you.