COULD A DIP IN MORTGAGE RATES JUMP START THE REAL ESTATE MARKET?
January 17, 2019
After increasing by nearly a full percent in 2018, average 30-year mortgage rates have been trending downwards for about two months now, due in part to volatility in the stock market. If these rates hold or continue to decrease, it could provide a boost to the Peninsula real estate market in early 2019.
It seemed that years of rapid growth in home prices finally caught up to us a bit in the final quarter of 2018, and rising interest rates only served to compound affordability issues. Homes were sitting on the market for an average of 30-45 days in the final months of the year, instead of the 10-20 that we had grown accustomed to. As sellers were forced to temper their price expectations, price reductions became much more frequent. It is quite possible that we hit a bit of an “affordability ceiling” here in the Peninsula, with rising interest rates playing a significant role. Lower rates could bring some buyers back into the fold, giving the market a jolt in 2019.
As of January 10th, Freddie Mac listed average 30-year fixed rates at 4.45%, which is down from 4.94% in early November. If you’re curious about current rates, and would like to know what type of mortgage you may qualify for, we’d be happy to connect you with one of our preferred Loan Advisors. Just give us a call at (650) 363-2808