Now may be the time to jump off the fence for your San Clemente real estate purchase, including Talega real estate, as interest rates last week fell to a near record low of 4.96% for a 30 year fixed mortgage.  According to this article on CNN, these low rates spurred an 11% increase in mortgage applications, a favorable leading indicator for the housing market. 

These low rates coupled with the past couple years of price declines are increasing affordability for many.  This has been evident so far this year with an increase in San Clemente real estate sold and under contract as of February 2009 compared to February 2008.  While price declines may not be over, interest rates most likely will not stay at these record low rates, meaning your monthly payment long-term if you wait may be much higher than if you make the move now. 

If you are concerned about losing equity from a purchase today, remember that real estate is a long-term investment.  San Clemente real estate long-term will most likely enjoy at least historical levels of appreciation of 8-9% as there is very little coastal real estate left to develop and California’s population is projected to grow by 12 million or approximately 35% by 2030 according to the U.S. Census.  Based on fundamental economics, this means upward pressure on home values due to increased demand and less supply.

 Please feel free to contact your exclusive San Clemente realtors for more information as there are no obligations since the seller pays all agent fees. 

This entry was posted on Wednesday, March 11th, 2009 at 1:05 pm and is filed under Market News & Analysis, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.