Matt LaVaute

I've had a lot of my clients, especially from Southern California and Los Angeles, ask me if mortgage rates are truly at record lows.

I tell them, yes, world record lows. Universal record lows. Battlestar Galactica record lows.

Ok, I'm exaggerating, rates aren't really at intergalactic lows. But Los Angeles mortgage rates ARE at the lowest levels they've been since 1955.

When I tell people that, they don't believe me. I tell them "the last time mortgage rates were this low, Eisenhower was president and gas was 23 cents a gallon."

How Long Will Los Angeles Mortgage Rates Stay This Low?

People also ask me how long mortgage rates will stay this low. Good question and I don't have an answer other than "does it matter?"

Does it really matter how long Los Angeles mortgage rates will stay at 1955 lows? What matters is they are that low TODAY. Right now. And that means one thing - people should act on them.

Either refinance if you have a higher rate than today's rates (which you probably do if you haven't refinanced or bought in the past year or so) or buy a house if you're thinking about it. Take a lesson from Nike and Just Do It!

Learning from a Leader

One of my friends Jeff Perry Quicken Loans Regional Vice President at our Cleveland, always encouraged his team to live in the present and take advantage of what they have at any given moment - and not to pass up opportunities for a perceived better chance later. That chance may never come and you might lose what's right before your face.

I agree with this.

Lock-in Before It's Too Late

If you can save $200 a month with a lower mortgage payment (or more in many cases), why wait to see if you could save $220 six months from now if rates dip a bit lower? For $20, you'll lose $1,200 in mortgage payments you don't need to make. If you live in the Los Angeles area and you have a mortgage rate higher than 5%, you can do a mortgage refinance and lower your payment (assuming you have equity). Today, the Quicken Loans mortgage rates page has 30-year fixed mortgages at 4% (APR 4.196%) and 15-year fixed at 3.75% (3.966%). You probably won't see rates this low ever again.

There's been plenty of bad news on the home front in Southern California. Southland home sales fell dramatically in July as federal tax credits for buyers expired. Consumer confidence still hasn't recovered from tough economic times.

"The lack of progress on the economic front is just having a very problematic impact on the psychological situation of a lot of American consumers," said HousingEcon.com principal economist Gerd-Ulf Krueger in a recent Los Angeles Times article. "They are very cranky."

So where's the light at the end of the tunnel?

Take Advantage of Historically Low Los Angeles Home Mortgage Rates

Mortgage rates have sunk to historic lows for the eighth straight week. Really, rates haven't been this low since Eisenhower was president in the 50's!

These record low Los Angeles mortgage rates come from reports of lower than expected growth in the private job market which eased fears of inflation.

"Interest rates are at 1950s levels," said broker Syd Leibovitch, president of Rodeo Realty Inc. in Los Angeles. "I am surprised that hasn't spurred more activity."

So what's this mean for you?

Work with a Los Angeles Home Mortgage Professional

This is a great opportunity to evaluate your financial situation and see if refinancing with a Los Angeles home mortgage is the right choice (it probably is). Refinancing will save you cash by lowering your monthly mortgage payment. Depending on your financial situation, you could save thousands in interest by locking-in a lower rate.

As a Quicken Loans home loan expert licensed in Los Angeles, I have helped many clients buy a new home or refinance into a lower monthly mortgage payment with a home mortgage. Whether you want to refinance or buy a home, if you're ready to move forward get in touch with me at Quicken Loans today!