California’s Real Estate Market is Strong. Mortgage rates rise slightly, mortgage applications rise and refinancing dips.
Despite a quiet Thanksgiving week, November home sales in California look promising. Existing single-family home sales were roughly 14 percent below November 2020 levels, but that was still a strong trend above 400,000 units.
Thirty-year fixed-rate mortgages rose to 3.31 percent from 3.24 percent. The 15-year fixed-rate mortgage rose to 2.44 percent. The 5/1 adjustable-rate mortgage is at 3.13 percent. As a response to the rise in mortgage rates, mortgage refinance applications dropped 15 percent from the week before, which was 41 percent lower than the same week one week prior. Conversely, mortgage applications to buy a home rose 5 percent.
Pending home sales in October were 7.5 percent higher in October compared to September showing California’s Real Estate Market is Strong.
Sources: CNBC, C.A.R. Market Minute