Whats All This Talk About Interest Rates Rising In Visalia CA
Dated: February 8 2019
The ring of 2019 sounded like it was going to push buyers into the market quickly as rates were expected to rise fast! Experts have suspected that rates would rise into the 6's by the end of this year. What we have seen so far has been the opposite. In Visalia, CA rates dropped the beginning of the year and have continued to stay low for now. Our in office lender has suggested in our past sales meeting that the speculation of rising rates may have been an over statement. We are expecting another great year in the life of real estate.
Debbie Carlson contribute to Money.usnews.com says, "RISING INTEREST RATES are having a ripple effect across the housing market as the Federal Reserve increases borrowing costs.
Analysts expect the Fed to raise rates again in December and possibly a few times in 2019. The effect of the Fed’s rate hikes is seen in mortgage rates, which are about 100 basis points higher compared with a year ago at nearly 4.9 percent for a 30-year fixed rate mortgage.
October housing starts data also fell short of expectations. Homebuilder sentiment is falling amid rising mortgage rates and stronger home prices, according to the most recent monthly survey by the National Association of Home Builders/Wells Fargo Housing Market Index. The survey data show that builder confidence dropped eight points to 60 this month; it was 72 at the beginning of the year.
Experts say some areas of real estate and certain regions may hold up better than others with rising interest rates." See the full article, http://https://money.usnews.com/investing/real-estate-investments/articles/how-will-real-estate-withstand-rising-interest-rates