Mortgage Rates Sink Closer to the Pivotal Magic Number spurring re-fi calls
Skip to main contentSkip to main navigation menuAccessibility MenuEmail Me(661) 888-4983**(661)888-4983
**Facebook**Twitter**Instagram**YouTube
\Mortgage Rates Sink Closer to the Pivotal Magic Number spurring re-fi calls
Connor “with Honor” MacIvor - September 16, 2024** Tags: refi, [santa clarita](/-/Blog/tag/santa clarita), [homes for sale](/-/Blog/tag/homes for sale), [top agents](/-/Blog/tag/top agents) ** 0 Comments | Add Comment
In October of last year, mortgage rates soared to a two-decade high, hitting 7.79% weekly and spiking to 8.03% on a daily basis. Now, almost a year later, rates are plummeting, and we’re approaching a critical tipping point that could send the Santa Clarita real estate market into a frenzy. This so-called “magic number” is the rate threshold that could unleash a flood of pent-up buyer demand.
Understanding the ‘Magic Number’ in Real Estate
Real estate experts, from Barbara Corcoran to Robert Reffkin of Compass, agree that the “magic number” for mortgage rates is 6% or lower. They believe that once rates drop to this level, buyers who have been waiting on the sidelines will feel confident to jump back into the market. Even Mat Ishbia, CEO of United Wholesale Mortgage, echoed this sentiment on CNBC, suggesting that anything in the 5% range could serve as the catalyst for renewed market activity.
As of now, we’re not quite there, but we’re close. The average 30-year fixed weekly mortgage rate recently dipped to 6.2%, while the daily rate hit 6.15%. According to Freddie Mac, “Mortgage rates have fallen more than half a percent over the last six weeks and are at their lowest level since February 2023. Rates continue to soften due to more sedate economic data.”
For some, this news may feel like a blast from the past. If you remember the 1980s or 1990s, you know mortgage rates were often much higher. However, for younger buyers who’ve seen rates bottom out below 3% during the pandemic, anything above 6% may not feel quite like a bargain yet.
The Impact of Lower Mortgage Rates on Santa Clarita Real Estate
Let’s break down the numbers for a typical Santa Clarita homebuyer. If you’re eyeing a $600,000 home and put 20% down, here’s what your monthly payment might look like at various rates:
The difference between an 8% and a 6% rate translates to about $7,728 in annual savings. When you compare 6% to 3%, you’re looking at a $10,248 difference over a year. And the gap between a 3% and 8% rate? A whopping $17,976 annually. These are the kinds of figures that keep potential buyers, sellers, and current homeowners up at night, pondering their next move.
This is why we’ve seen the “lock-in effect” play out so dramatically. Many homeowners who secured low rates during the pandemic are hesitant to give them up. It doesn’t make financial sense to swap a rock-bottom rate for one that’s more than double, especially considering that home prices have also gone up, making an even trade nearly impossible.
However, life circumstances—such as job changes, growing families, or downsizing—often force people to make moves, regardless of the rates. And for those who’ve been waiting for rates to drop, we may be nearing that pivotal point. A 6% rate or lower might just be the nudge they need to act.
What Does This Mean for Santa Clarita Buyers and Sellers?
If you’re looking to buy or sell a home in Santa Clarita, you need to stay informed and ready to act. At SantaClaritaOpenHouses.com, we’re closely monitoring these trends, so you don’t have to. Our team of experts is here to provide the most up-to-date information, helping you make smart, informed decisions about your real estate investments.
When rates dip below that 6% mark, the floodgates could open for buyers, leading to more competitive offers, shorter days on market, and potentially higher prices. On the other hand, sellers who have been hesitant to list may find that this is the perfect time to capitalize on increased demand.
Refinancing: Is It Time to Reconsider?
With rates now trending lower, another question on the minds of many homeowners in Santa Clarita is whether to refinance. While it might seem like a straightforward decision, it’s important to approach it with caution.
Here’s why: Although lenders are eager to help you refinance, the process isn’t free. Costs can add up, and not every lender will offer the best deal for your unique situation. The rate and terms of your refinance are crucial, but so is the trustworthiness and service of your lender.
It might be tempting to go back to the lender who originally financed your home, but that might not always be the best move. Some lenders might promise the best rate and terms initially, only to change the deal at the last minute, citing changes in market conditions. This bait-and-switch tactic can leave you with a less favorable deal than you originally expected.
On the other hand, a lender you have a strong relationship with, who has consistently provided you with reliable service, is less likely to pull such stunts. It’s vital to ask the right questions up front and to get everything in writing. This way, if the terms change unexpectedly, you have proof of what was originally promised.
What to Do Before Refinancing
Before jumping into refinancing, consider the following:
The Bottom Line for Santa Clarita Homeowners
For those looking to buy in Santa Clarita, the news of falling mortgage rates should be a welcome relief. We are nearing that critical 6% mark that many experts believe will spur increased market activity. However, the decision to refinance is more complex. Don’t just rely on your current lender’s offers. Do your homework, shop around, and ensure you’re getting the best deal for your specific situation.
Remember, the key is not just to find the lowest rate but also to work with a lender you trust. After all, refinancing is a significant financial decision that should align with your long-term goals.
And as always, Connor with Honor is here to help you navigate these waters with transparency and integrity, ensuring you make the best choices for your real estate needs in Santa Clarita. Visit SantaClaritaOpenHouses.com for the latest updates, market insights, and a personal touch you can trust.
By staying tuned to SantaClaritaOpenHouses.com, you’ll be ahead of the curve, ready to seize opportunities as soon as they arise. Don’t wait for the “magic number” to pass you by—connect with us today and take the next step in your real estate journey!
** Share This Post## Comments
Already have an account? Yes NoLog In and Post CommentProtected by reCAPTCHA. Privacy • Terms
Explore
Connect
**Facebook**Twitter**Instagram**YouTube
🤝
Full Transparency
Yes, I earn referral fees when you work with agents I recommend. But unlike national platforms like Zillow or Realtor.com, I personally know and vet every single agent in my network of 17 trusted professionals.
My recommendations are based on YOUR specific needs and the complexity of your situation—not who pays the highest referral fee. I live in Santa Clarita Valley, and my reputation in this community depends on your success. Local accountability matters.
Ready to sell with a deliberate strategy?
Get seller-focused guidance built around your timeline, equity goals, and negotiation leverage.