INTEREST RATES DOWN FROM LAST WEEK and a note about WEALTH

Mortgage interest rates are down from last week! Please read on to see why this is noteworthy...

During our California Brokerage meeting this morning, we delved into current market conditions. Particularly in the Bay Area, it is no secret that the real estate market is continuing to thrive, even through turbulent times. There is a popular saying that holds true: The best time to buy a property was 20 years ago, and the second-best time is now! Any savings an interest rate reduction can accomplish is significantly offset by the cost of waiting to time the market which may lead to missed opportunities because prices continue to rise.

Take a look at the graph below from California Association of Realtors - since 1989, the average net wealth of an American family has been in the range of $4,000 to $7,000. In contrast, the average net wealth of a family owning a home has been in the range of $200,000 to $260,000.

When interest rates move down even slightly AND one has the financial capacity to buy now, it presents an even more compelling reason to consider buying now. Please also note: The interest rates we’re seeing now are very much within historic average rates. The COVID rates were an anomaly, one that is probably a once-in-a-lifetime kind.

Please let me know if you'd like to talk more, whether you’re considering buying or simply want to catch up, I’d love to chat!

510.684.3939

#interestrates #mortgage #homeownership #realestate