It’s been a long-time coming, but the California housing market finally saw an increase in home sales in July. For the first time in a year, CoreLogic reports that 42,432 new and existing homes and condominiums in California exchanged hands in during the month, a 5.1 percent increase from June and 1.8 percent above July 2018.
The sudden increase is being attributed largely to mortgage rates dropping over the summer. The 0.7 percent decline in borrowing costs of the past year equates to about a 7 percent savings on a typical mortgage payment.
Additionally, CoreLogic data shows that home prices across the state were less than 2 percent above last year’s levels, further bolstering home sales.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.