I watch the interest rates daily and have noticed they have relaxed over the past couple of weeks. I’m sure it has to do with looming inflation.
People want to buy homes, but the local Santa Clarita and Valencia CA market experienced a slow down the last rate increase.
Today interest rates for a Santa Clarita Mortgage are around 4.5% and have been for the past couple of weeks.
My REMAX and associates team have observed a ‘higher than normal’ buyer drive since the interest rates have relaxed.
Home buyers have the same common questions. How do I know I’m not paying too much for the home. What if I want the seller to change the carpet? Why did the interest rate change from what I was promised in the beginning?
Home sellers are impacted by the slight adjustment of interest rates in a positive way. They get more showings and get more money for their home due to the increased competition.
The next meeting of the FED will be taking place at the end of July 2018. The rumors about that meeting all seem to be pointing to an increase in the mortgage interest rates.
We will have to wait and see. Back in 2016, if my memory serves me correctly, there were three times in which the interest rates were rumored to be going up and they did not, they reduced.
However, this year – I’m sure the increases will be a good bet.
For every .5% (point five) or 1/2 of 1 percentage point rise in the interest rate, it hits a person that is qualified to buy $500,000 of real estate about $50,000. Therefore, the home buyer would now only qualify for $450,000, not $500,000.
We will keep you posted as to any and all changes within the Santa Clarita real estate market. I have been representing home buyers and sellers since 1998.
With the advent of technology, the finding a home aspect has gotten easier. However, it’s making the buying of the home aspect harder.
Be safe, I’m Connor MacIvor with REMAX and I will be of great service to you and yours when you are ready!