INTEREST RATES EFFECT BOTH SELLERS AND BUYERS

Happy Thanksgiving!!

If you’ve read a few of these blog posts, then you know I am no fan of the Media and their real estate news. They are often late, or early, or not on target.

During the Foreclosure crisis of the late 2000’s, the media was late reporting the problems–millions weoff-targetre already effected. In the hot market preceding the foreclosure crisis, news reporters were flooding their outlets with news of the “new trend” of multiple offers, frustrated buyers, and seller’s values increasing by 20 and 30 thousand dollars month to month. When, in fact, us Realtors had been dealing with these challenges for months before it hit the mainstream media.

This is frustrating because often I will give my best professional advice to a client, only to have the client go with ‘what I heard on the news’. Sigh…….I tried my best to advise based on what’s really currently happening. sac-re

Recently, KCRA TV featured a report about a loan rate increase since the election. Can’t say it’s not true, nor untimely. It does seem a bit bombastic to me. KCRA’s report advised ‘locking in your rate now’, as if rates were about to sky rocket! And just a note–a buyer would need to have a loan pre-approved and in process to lock in a rate. It’s not like any casual home shopper can just “lock in a rate”.

According to Evelyne Jamet at Vitek mortgage, “the conventional fixed rates are right about 4.125% now and 3.75% for FHA.  They increased .375% after the election”.

If you remember election night, the stock markets took a tumble overnight, but came back very strong the next day.  This rate increase is not reason to panic! At the moment, it is not indicative of a huge rate increase that will send buyer’s loans and payments out of reach. It also doesn’t appear to slow the market down enough that will lower seller’s values.

So, if you want to believe a real estate pro, I’d say don’t panic, and let’s see how the market looks in the coming one to four months. I don’t think it will look much different than today.

I always welcome your thoughts and comments! Find me on Facebook (Kylee Roe-Realtor/Realty One Group) or via email (kylee.realtyone@gmail.com), or call me-916-804-9355.

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Have a happy holiday season!

 

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