Low Rates, Strong Economy Ease Stress of Home Buying

Despite rising prices, Orange County home buyers appear to be handling their purchases without much financial stress, thanks to 7% mortgage rates and the prospering economy.

Since it’s easier to qualify for adjustable-rate mortgages than fixed-rate loans, the percentage of ARMs typically goes up when people want to buy homes but can’t quite afford them.

That hasn’t happened so far in the local market, according to Acxiom/DataQuest Information Services, whose figures go back a decade.

“In fact, the ARM rate is 18.6%--the lowest I have in my data,” said DataQuick statistician John Karevoll.

The California Assn. of Realtors calculates that 38% of Orange County households have enough income to buy a median-price home in the county with a 20% down payment.

That’s up from the 11% of households calculated in the summer of 1989, though down from the near 50% in late 1993, when interest rates scraped bottom.

Highpointe Acquires Victorville Community

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E. Scott Reckard covers real estate for The Times. He can be reached at (714) 966-7407 and at scott.reckard@latimes.com