Mortgage rates in Los Angeles fell this week. Meanwhile, the Los Angeles Times busts the idea that the City of Angels is in a housing bubble.
This week's rates
The benchmark 30-year fixed-rate mortgage in Los Angeles fell to 4.06% from 4.13%, according to the Bankrate.com national survey of large lenders. The mortgages in this week's survey had an average total of 0.1 discount and origination points. Nationally, the 30-year fixed-rate mortgage was 4.03%.
No housing bubble for Los Angeles
Soaring home prices in Los Angeles have some people concerned that the region is in another housing bubble. But according to the Los Angeles Times, there's no need for panic.
The Times used the house price index from the Federal Housing Finance Agency to analyze price history and housing cycles in Los Angeles County from 1975 to the present.
It found that the area's current housing recovery only started 3 years ago in 2012. And on average, there will be around 4 more years of price growth before the turning point, notes the Times.
The benchmark 30-year jumbo mortgages, for loans of $625,500 and up, fell to 3.94% from 4.03%. The benchmark 15-year fixed-rate mortgage fell to 3.31% from 3.38%. The benchmark 5/1 adjustable-rate mortgage fell to 3.19% from 3.38%.
Weekly mortgage survey
|Results from Bankrate's Aug. 26 survey of mortgage lenders. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $625,500 in Los Angeles.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||4.06%||3.31%||3.19%||3.94%|
|Change from last week:||-0.07||-0.07||-0.19||-0.09|
|Change from last week:||-$6.67||-$5.62||-$17.02||-$32.24|