Sacramento Real Estate Views

Mortgage Rates Increase in Sacramento Real Estate

Rates Up Slightly

Rates have increased slightly this week, up from 5.14% to 5.20% on average, 5.19% in the west.  Lower rates are possible these are just the averages across the board.

This time last year, rates were at 6.63% for a 30 year fixed rate product.

According to FreddieMac.com, this is the first increase in the last 4 weeks and is attributed to the perception that we are past the worst of the housing mess as indicated by recent reports about home values and new construction data. Frank Nothaft, Freddie Mac VP and Chief Economist said:

1) Prices were down 5.6% between May of 2008 and May of 2009, the smallest year over year decline since June of 2008.

2) New construction of single family homes increased 14.4% in June. (not in the west)

3) New home builders are feeling better about the market and optimism is at a 10 month high.

Although rates have gone up slightly, it’s not enough, in most cases, to stem buying activity.  Rates are still lower and have remained low for years.

The only question remaining is what will values do.  Most think that we will have further declines in home values.  While there are a lot of factors determining that, I see that we are bouncing along the bottom of the market for now but time will tell.

Looking for a  home to buy in the Sacramento region?  Whether it’s Sacramento or Placer county, give me a call and we’ll help you get there.

Thanks for visiting!

Tags: interest rates sacramento, sacramento mortgage rates