Marin County Real Estate Update: Interest Rates Climbing
We had our weekly sales meeting yesterday and heard from Adam Wise of North Coast Mortgage, our in-house mortgage broker.
In case you missed the news of the last two weeks, interest rates for mortgages have increased dramatically the the last two weeks. How much?
A conforming 30 year fixed is now around 6 7/8%, and a jumbo is 7 1/8%. That’s almost a half point move from two weeks ago.
What’s this mean if you’re looking at buying a house in Marin County?
First, start looking at other instruments besides the 30 year fixed. Adjustables are starting to make sense again, if you have a substantial down payment and your prospects for increasing income are good. The spread on the jumbo for an adjustable is now almost a full point.
Second, if you’re thinking of buying a home in Marin County, think carefully about your time frame for owning a home. If you’re going to be there for more than a couple years, it still makes sense. Why?
Historically, Marin County prices do not decline substantially. If history is any indication, they rarely do - only twice in the last 41 years. So if you buy now, your chances of massive depreciation are slim.
If interest rates do indeed continue to increase, as many are now predicting, you’re better off locking in now. Selection may be better six months from now - but if prices don’t pull back, and rates continue to climb, you could be priced out of the home you really want.
As always, please contact me for more information or up to date market statistics.
