Mortgage rates are are extremely favorable, and should slide a bit further next week.
How much lower could they go?
Below is a link to an article that compares today to 2011/2012 – an excerpt:
If we merely match 2011’s performance, the current rally could last almost another year and result in 10yr yields below 1.0%.
I’d be more concerned about the current legislature prioritizing statewide rent control at the Governor’s direction and the equally alarming 2020 proposition to remove commercial properties from Prop 13.
I’ll worry about those next year, though…..could one or both of those cause more pent-up quality supply to come to market?
For now, I’d like to see jumbo rates slip into the low-3s, and keep the market hopping for the rest of 2019.