Predictions!?!? We know, we dislike predictions as much as our educated readers out there. However, we thought we would give you our top 3 "predictions" of the California real estate and housing market since it's the beginning of a new year,

1. Mortgage interest rates will stay under 4%

With current mortgage interest rates still hovering below 4%, it is our opinion that rates are unlikely to take a dramatic turn in 2013. Yes, we have seen a bump up in rates the last couple of weeks, but there are a few factors that should help keep interest rates low. One of the biggest reasons being a still recovering and fragile economy. Also, the Fed continues to purchase billions of dollars in mortgage backed securities each month. This should help to keep the yields on bonds, which influence mortgage rates, at levels that will sustain low rates. That being said, if you still have yet to refinance your current home and take advantage of these low interest rates, now is the time! Logic tells us that rates have already hit rock bottom and now is a fantastic time to lock in a sub 4% interest rate on a 30 year fixed home loan.

2. Buyers will increase and shop the market.

As "baby boomers" close in on retirement, their offspring the "echo boomers" are hitting prime real estate age. They are graduating from college, getting married, and finding themselves in their first career job. Many have planted roots by buying homes and many more of this demographic will continue to do so as they start families. Young single professionals are also among the growing trend of home buyers in major metropolitan cities.

As the housing market rebounds, many in this demographic who have already purchased will begin the process to be “move up” buyers, selling or renting their existing residence and moving into their dream home or location. Many homeowners have been waiting to upgrade and with the recovering market, this might be the year they make the leap.

3. The market will rebound with both factors mentioned above.

With near rock bottom mortgage interest rates and a still affordable California market we believe 2013 will be a strong year for the housing industry. With an increase in buyer demand and essentially "cheap" money available, the housing market should continue to rebound as we saw the in the last 2 quarters of 2012.

LifeSource Mortgage is a licensed in California. We specialize in Orange Couny, Los Angeles, and San Deigo County. However, we are proud to serve clients all over the entire state of California. Call us today! (949) 492-2252.