Sacramento Real Estate Views

If You Don’t Buy Soon, In 5 Years You’ll Wish You Had

Rates Are LOW and Values May Not Get Much Lower!

Freddie Mac reported today that mortgage rates have edged up this week from last week’s reported 4.82%  to 4.91% this week..WOW..what an increase! Last year at this time the average mortgage rate was 6.08%.

Rates are still so low that it’s hard to imagine a time when they were 15% to 18% but that’s what they were just a scant 20 years ago.  Can they go back up to those levels?  That’s a great question that no one has an answer to.  That said, I’ve heard rumors that the mortgage rates can’t stay low like this forever and will go back up in the short term.  I heard that from a mortgage broker..now there’s a surprise! (you’ve probably heard the same rumor!)

Nationwide, the inventory of homes for sale has increased further depressing values in other regions of the country.  While we still expect that there will be more value to be lost in the Sacramento and Placer County real estate markets, how much is anyone’s guess.  We don’t currently have the inventory of homes for sale but I’ve also heard rumors, today in fact, that this will be changing in June.

At the time of this writing, there were just under 6300 homes for sale in the El Dorado, Placer and Sacramento county areas.  Look for this to increase in the very near future as the “shadow inventory” begins to come on the market.

Looking to purchase a primary or investment home in the Sacramento region?  Please give me a call 916-532-7653.  Buying or selling, either way, we can help you get there.

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Tags: mortgage rates sacramento

This entry was posted on Thursday, May 28th, 2009 at 3:00 pm and is filed under Mortgage Information. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. Brian Brady said at June 19th, 2009 at 1:09 am

   What do you think the effect of now the SECOND foreclosure stay, in six months, will have on inventory after Halloween? If you believe that inventory might rise, would that have an effect on Sacramento home prices?

2. robsaxe said at June 19th, 2009 at 5:35 am

   If I’m not mistaken, this is the third time a moratorium has been in effect since September of 08. The law is similar to the Obama plan. That’s a good question the result of which is pure speculation. No one knows for sure what will happen and it’s anyone’s guess. It seems though that the government intervention has added to the time it will take to recover. Rather than letting it run it’s course as quickly as possible, it seems all they’ve done is to delay the inevitable.

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