Mortgage Rates Drop!

If you are in the market to buy or sell Tahoe Keys real estate, chances are you are keeping a close eye on the mortgage rates. After all, even the littlest change can impact your buying power. Interestingly, the past couple months saw hikes as the Federal Reserve raised the interest rates. This created a bit of panic among buyers as they were already feeling the pressure of being in a sellers market. Add in a higher mortgage rate and some folks were left wondering if renting was going to be their only option for the next year or two.  If you are in the market to buy Tahoe Keys real estate, the latest change in mortgage interest rates is likely good news. If you are looking to buy real estate in Tahoe Keys, you are also in luck as we currently are in a buyers market with a month supply of 5.3. Now this neighborhood happens to have the highest median and average sales price for the South Lake Tahoe area, but the fact that there is inventory is cause for celebration. For the first time in months, rates are back down below 4%. This drop comes after experts predicted a hike in interest rates. If this news causes you to feel like you can press pause on buying real estate in Tahoe Keys, don’t get too comfortable. There are two more interest rate hikes on the horizon for 2017, so getting in on a historically low rate again isn’t expected to be the standard for the next year. 

You may be wondering what exactly is going on that would cause the rates to drop below 4% again. In a nutshell, while mortgage interest rates are influenced by the short term interest rates set forth by the Federal Reserve, they are more impacted by the 10 year U.S. Treasury bond market. Investors consider mortgages and bonds safer compared to stock markets. When stocks increase, investors get nervous and put their funds into bonds. When bonds are up, mortgage interest rates go down. Currently, the U.S. stock market keeps climbing so investors are looking for safe places to put their money.

The littlest change in an interest rate can be a big change for someone looking to buy Tahoe Keys real estate. A small percentage increase adds up and may price you out of that home for sale in Tahoe Keys you have been eyeing. If your budget is strict, a lower mortgage rate means a lower monthly payment. If you wait, you could possibly face having a higher rate. As there is no way to predict how long the current trends will last, it is best to take advantage of the current opportunity soon. If you are looking to buy a home for sale in Tahoe Keys, call me at 530-308-4331. I would be happy to guide you. 

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