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Mortgage Rates and the Suburbs 


By now you must have come across hundreds of news headlines and posts and even conversations about the “record low mortgage rates.” Many are predicting that it will actually drop again before the end of the year.


The low mortgage rates have given light to some interest occurrences, among them is the fact that although initially with the drop in rates, refinancing applications (as expected) increased dramatically, they have now tapered down and reached levels similar to this time last year. What does this mean? It means that just because a homeowner can refinance for a lower rate doesn’t mean they will, it also means that refinancing may not be as easy and as simple as we would want it to be. This brings great value to just buying your home when the rates are low, so you don’t have to worry about high interest rates and about refinancing when the rates drop.


Another thing that has happened is that many people are using the low interest rates as an opportunity to leave busy densely populated areas and are moving to the suburbs for more space. This fact is significant to future homebuyers and to investors.

Future home buyers who want to buy homes in the suburbs, over time, will see a shortage in supply and an increase in prices. Those looking to buy property in cities and densely populated areas may not have as much competition from homebuyers, but they may see competition from investors looking to increase their rental property holdings.


Investors are faced with a couple of different decisions. Do they invest in property in areas with young professionals without families who would rather rent in the city than buy in the suburbs? Or do they buy homes in the suburbs to rent to individuals and families who want to have more space but are not in the financial position to buy a home yet. An investor can also invest in “fixer upper” properties in the suburbs and turn them into turnkey homes for the increasingly high number of individuals and families looking to buy in the suburbs.


Real estate professionals and real estate investing groups like Amin Vali Investing Group can provide some insights for the best options on an individual basis (www.aminvali.com). 


Amin Vali

Civil Engineer, MBA, Real Estate Agent

Cell phone: +1 (949)220-1000

Phone : +1(310)300-0011

Web : www.aminvali.com

Web: www.persianinvest.com

E-mail : amin@aminvali.com

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Realtor in Zutila Inc.

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