This entry was posted on Friday, November 9th, 2007 at 8:27 pm and is filed under Mortgage Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Sacramento Mortgage Rate Update: Rates Improve
Mortgage rates improved slightly this week, dropping to a national average of 6.24% with .4 points, according the Freddie Mac’s weekly survey.
Fed Chairman Ben Bernanke indicated in his testimony to Congress that the risks of inflation and a slowing economy are now in balance. However, there seemed to be an underlying concern about the economy that was underscored by Friday’s Consumer sentiment report. The reading fell below expectations to 75.0, the lowest point in 12 years.
While this pattern is often associated with a recession, it is usually accompanied by job losses. Unemployment remains lows and worker productivity rose this week. The November sentiment appeared to be largely the product of high gas prices and declining real estate values.
Interest rate forecast: mostly sunny with a chance of showers if inflation rears its head.
Real Estate forecast: I wouldn’t invest in rentals just yet and I certainly wouldn’t try to flip property, but now is a great time to buy a home in Sacramento. Two years into this decline, prices are attractive, choices abundant, competition non-existent, and sellers motivated. Sure, values may decline further before they turn the corner, but once we hit bottom buyers lose some of that advantage.
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