What’s Happening With Rates in the SoCal Market?

Interest rates have come back down from where they were earlier this year. Here are some of the latest numbers you should know.

In my recent email about the state of the market, I mentioned that we are shifting to a buyer’s market, where homes are sitting longer on the market. 

When the Federal Reserve increased the federal discount rate, the interest rate moved up to nearly 5%. Recently, we’ve heard talk of the Fed decreasing this rate by 0.5% and the market has reacted pretty well. Mortgage rates are down 1% since and now sit at around 4% on average. The jumbo rate is around 3.6% too.

What does this mean for you if you’re on the fence about selling your home? Well, it might not be a better time for a while. Inventory is still low and sellers can still get a great price without having to discount your home.

"Don’t get discouraged if you’re a buyer. This is good news."

What does this mean if you’re a buyer? Don’t get discouraged. This is good news. With lower interest rates, you can afford 20% more of a home and with increased inventory, you have more to choose from. If you’re a first-time homebuyer, you should know that a mortgage credit certificate is a good idea and pretty easy to qualify for. This is also a useful tool for those looking to refinance.

With this mortgage credit certificate, you can deduce up to 20% of the interest you pay annually against your tax liability. Let’s say that you have an annual interest payment of $16,000. This gives you $3,200 you can use to write off on your tax liability.

If you have any questions for me about the market, the mortgage credit certificate, or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.