It appears the government pumping capital into the financial markets and the Fed's rate cut this week is beginning to have an impact on mortgage rates for your San Clemente real estate purchase.  This week, rates on a 30 year fixed fell to 5.19%, a 37 year low and a decrease of almost an entire percent from the 6.14% rate a year ago.    To articulate this new incentive for those buyers sitting on the fence, this is a savings of nearly 10% on your monthly mortgage.  With a 20% down payment, $700,000 financed would equate to a monthly payment of $3840 as compared to $4260 a year ago, a savings of $420 per month, over $5,000 per year, and $150,000 over the life of the loan. 

Should these rates bring more buyers back into the market, we will see inventory reduce to historical averages, prices stabilize, and fewer foreclosures and short-sales on the market.  As these factors adjust, lending standards may begin to losen, however, not to the lack of standards before the collapse of the market.  Nevertheless, much of this will be subject to better economic conditions.

For more information on San Clemente real estate or Talega real estate, please feel free to contact us!