Well, the crazy Southern
California real estate market received a boost from
home-mortgage rates, as rates fell again this week. The
30-year fixed mortgage fell to 5.81%. According to the Wall
Street Journal, the rate-decline was based on "concerns
that the economy's soft patch that began in June is extending
into July and August".
With such high median home prices in So Cal, the ARM has
become an extremely popular financing tool, that rate fell to
4.01%.
Some economists think the current rate decline is only short
term. Freddie Mac states, "..we believe the slowdown to
be temporary and we expect growth to pick back up in the
second half of this year."