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Sacramento Mortgage Rates: The Local Market Heats Up
Today’s jobs report continued the 3-month trend of losses. In a rather ominous sign, the service sector– responsible for 80% of the economy’s job growth–failed to produce any increase. To make things more dreary, January and February’s losses were revised lower still by a combined 68,000 jobs, for a total of 232,000 jobs lost year to date. Unemployment edged up to 5.1% to no one’s surprise, but on the on the heels of further banking losses and home foreclosures, expectations rose slightly for a 50 basis point Fed cut on the 29th.
Yesterday, Freddie Mac reported a weekly average 30 year fixed rate of 5.88% with one-half point, although we’re getting a bit more improvement today. Inflation worries have been sidelined this week by further concerns about the economy. The debate still wages between those who think the economy can weather the financial and housing crisis and those who think we will have a full blown recession before it gets better.
Sacramento Real Estate Heats Up
In an odd sort of paradox, the Sacramento housing market has heated up. Although activity is highly concentrated around bank-owned properties, multiple offers and competitive bidding has replaced the near absence of buyer traffic. I have several all-cash buyer clients who have had offered on numerous properties only to be outbid buy investors and first time buyers. While lending guidelines tighten and change every day, the trophies will go to those who are still well enough qualified to snake through the lending gauntlet.
Prices are still in decline according to my appraisers, but they have obviously reached a threshold of affordability, and buyers are coming out to check out the merchandise.