Why Have Interest Rates Jumped to a 7-Year High?

Why Have Interest Rates Jumped to a 7-Year High?

Interest rates for a 30-year fixed rate mortgage have climbed from 3.95% in the first week of January up to 4.61% last week, which marks a 7-year high according to Freddie Mac. The current pace of acceleration has been fueled by many factors.

Sam Khater, Freddie Mac’s Chief Economist, had this to say:

“Healthy consumer spending and higher commodity prices spooked bond markets and led to higher mortgage rates over the past week.

Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season.”


But what do gas prices have to do with interest rates?

Investopedia explains the relationship like this:

“The price of oil and inflation are often seen as being connected in a cause-and-effect relationship. As oil prices move up or down, inflation follows in the same direction.”

You may have noticed that filling your gas tank has become substantially more expensive in recent months. The average national gas price has climbed nearly $0.50 from the beginning of the year, leading to the highest price for Memorial Day weekend since 2014.

As rates go up, your purchasing power goes down, but don’t worry; rates are still well below the averages we’ve seen over the last four decades.

“Freddie Mac said this year’s higher rates have not yet caused much of a ripple in the strong demand levels for buying a home seen in most markets, but inflationary pressures and the prospect of rates approaching 5 percent could begin to hit the psyche of some prospective buyers.”

Buying sooner rather than later will help lock in a lower rate than waiting, as the experts believe rates will continue to climb.


Bottom Line:
If you are planning on buying a home this year, keep an eye on gas prices the next time you’re at the pump. If you start to feel a big jump in price, know that rates are probably on their way up too.

Lead-Based Paint and Your Liability as a Home Seller

If anyone has bought or sold a home recently, you know there is a LOT of paperwork to a real estate transaction.  One very import disclosure that must be disclosed to a prospective buyer, for homes 1978 or older, is whether or not the home contains lead-based paint.  Recently in the news, there has been a lot of talk on the issue as certain paint manufacturers have come under fire for promoting lead-based paint. In lieu of this, many of my seller’s have raised the question “how do the actions of such companies affect me?” The illustration below, provided by the California Association of Realtors, helps to clarify a few points on this very important issue.

It is important to remember, when selling a home, the homeowner has the responsibility to accurately disclose known issues to prospective buyers. Failure to do so is often where many homeowners find themselves in trouble. When in doubt, seek the advice of a trained Realtor, whether it is lead-based paint or a flood in the bathroom, it’s important to share what you know.

 

 

Rising Interest Rates and San Diego Home Prices

Most home buyers have probably heard by now, mortgage interest rates are slowly on the rise in San Diego.   What many people do not understand is just a small rise in rates can have a big impact on your monthly payment.  The chart below, provided by the California Association of Realtors, provides a good snapshot of how quickly your monthly bottom line can increase with rate increases.

In addition to, rising interest rates have not adversely affected home prices in San Diego.  Month over month we continue to see increase appreciation in home values as demand for real estate continues to remain at a historical highs.  If you are waiting for prices to come down before entering San Diego’s real estate market, I’d encourage you to re-think your strategy.  Most experts to do predict a downturn in pricing for several more years but they do agree interest rate will continue to increase.  Take advantage of todays affordable interest rates; over the life of your home loan, you will be glad you did.

Home Buyer Blunders

Shopping for a home in San Diego is both competitive, and at times, overwhelming.  Multiple offers are the new normal and the lack of available homes to choose from can frustrate even the most prepared buyer.  That’s why it is important to work with a professional, experienced agent who can not only help you avoid home buying blunders, but make your offer the winning offer.  If you or someone you know is shopping for a home in San Diego, give me a call today.  With over 14 years experience in our local market, I can help make your dreams of home ownership come true.

Don’t Make These Key Mistakes When Buying a Home in San Diego

Homeownership Benefits

Magnificent Home For Sale at the Edge of Torrey Pines

Once in a lifetime opportunity to own a magnificent, extremely private, one of a kind home at the edge of Torrey Pines Preserve Extension in Olde Del Mar.
Ocean views, exposed open beam ceilings, floor to ceiling glass windows, updated kitchen with granite and stainless steel appliances, skylights throughout, stone fireplace and numerous outdoor garden/patio areas are just a few of the characteristics that will wow.  Steps to the hiking trails of Torrey Pines Preserve.  Experience what it would be like to live amongst the Torrey Pines, come smell the salt air and listen to the sounds of the ocean— visit me at our first open house Saturday Nov. 18th from 12 – 3 Pm or Sunday Nov. 19th from 1 – 4 PM.  Or if you would like to schedule a tour before the weekend, I’d be happy to accommodate.  Call or text Tami McCraw- at 619-884-9640 ( DRE # 01435258.) You don’t want to miss this very special 2 bedroom + 2 optional bedrooms, 2 bath, 1,831 square foot home on a private 12,900 square foot lot.  Home is proudly offered by Urban Dwellings Real Estate for $1,995,000.
 

The 13th Annual Boo Parade Is Coming to El Cerrito and Rolando

Get ready for some Halloween fun with the one and only  Boo Parade 2017!  Festivities begin October 28 at 10 am.  The event is free and fun for all.  Get out your scary hats, put a smile on your face and be prepared to have some fun!  The BOO Parade travels down El Cajon Blvd and has a new path this year.  It begins at the intersection of El Cajon Boulevard & Rolando Blvd and will travel WEST to 60th Street.  Looking forward to seeing you there!  BOO!

Buying a Home in San Diego

The chart below, provided by the California Association of Realtors, is an excellent reminder that there are many components to consider when buying a home in San Diego.  That is why it is so important to have a trusted real estate agent helping you every step of the way.  As a full time professional for over 14 years, I have the knowledge and experience to point out many of the pitfalls buyers often over look on their tour of homes.  While finding the perfect “fit” is an important piece to the home buying process, in truth it is just the beginning.  Overlooking a homes location, lot orientation, condition, deferred maintenance and so on, can have big impacts after closing.  I believe in honestly and I always point out the “good, the bad and the ugly” to my clients as we tour prospective homes.  I often hear “gee Tami we didn’t even think of this and we are so glad you pointed it out to us”.  In the end, I might spend more time with my clients than other agents, but their happiness is worth all the time in the world to me and ultimately we do find the perfect home.  So if you are looking to purchase, or know someone looking to purchase a home in San Diego, give me a ring today- I’d love to help.

Hire a professional to help you when making the biggest investment of your life.

 

SOLD for Record High Sales Price in Scripps Ranch’s community- Village Woods

I just SOLD for this lovely home for a record high sales price in the lovely Scripps Ranch neighborhood of Village Woods.

9935 Caminito Tomatillo just closed escrow for a record high sales price of $515,000.  This is the highest sales price ever to close in the community of Village Woods.

If you know someone who is thinking of buying or selling their home, please give me a ring today.  I can help net sellers top dollar and as a successful agent, I can help buyers have their offers accepted in our competitive San Diego real estate market.

Scripps Ranch Charmer! Open House Sunday (7.23) From 12-3 PM

Scripps Ranch Open House this Sunday 12-3 PM. 9935 Caminito Tomatillo. Stop by to see this beautiful 4 bedroom 2 1/2 bathroom END unit townhouse. Nestled under the trees in quiet “old” Scripps Ranch, this town home feels like a piece of paradise. ~ 1,694 square feet, 2 outdoor private living areas, huge bedrooms, upgrades galore! Hope to see you there!

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