By Clyde Noel

Town Crier Correspondent

Rates have already bottomed out, experts feel

If you’re waiting for mortgage rates to go lower because the Federal Reserve may cut interest rates later this month, you could be waiting in vain.

According to the California Association of Realtors, mortgage rates have already dropped sharply in recent months. While they might get a bit lower, the feeling among lenders is they may have bottomed out.

Potential home buyers and home owners seeking to refinance an existing mortgage may be looking at flat interest rates for the next few weeks because of a better-than expected February jobs report

History has shown that mortgage rates usually fall before the Fed cuts rates and not after. That’s because the bond market strongly influences mortgage rates and mortgage rates are strongly influenced by events on Wall Street.

According to local realtors, mortgage rates are already a good deal. Current rates available for a 30 year fixed is 6.750 percent and for a jumbo mortgage rate, 7.125 percent.

Home prices are impacted by such factors as proximity to a center location (Siliicon Valley), quality of local schools (Los Altos & Cupertino schools), the job market (high-tech), population growth (Santa Clara County) and development allowed by local governments (Los Altos Hills).

According to Freddie Mac, the massive home loan purchaser, the average rate for a 30 year fixed rate mortgage fell to 6.97 percent last week. This is considerable down from last year’s high of 8.64 percent. On a $200,000 mortgage the difference over last year would save nearly $2,770 a year.

While broad national trends impact loan rates, real estate itself remains a localized commodity.