What’s Going on in the Sacramento Market?



Today we wanted to stop by with some important updates on the local housing market and the mortgage loan market.

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Today we wanted to drop by with an update on our real estate market and the mortgage market.

Interest rates have gone up in the last few months. Just 90 days ago you could get a 30-year fixed mortgage with a 3.875% rate, but now, that same loan will hold a rate of over 4%. This is still a great rate for someone with good credit who puts down a decent down payment. This uptick in rates will only have a small impact on your monthly payment, so you'll only have to worry about the amount you qualified for if you planned on maxing out the amount you qualified for before rates went up.

For a $300,000 loan, this rate will affect affordability by about $10,000 on average. This isn't a ton of money, but it will continue to creep up; the Fed has stated that rates will increase by the end of the year.

Another adjustment in our market is the standard conforming lending limit on FHA and conventional loans. The maximum allowed amount for these loans has gone up a bit, which will be a nice boost for many buyers.

Even though rates rose, they are still
at fantastic levels for buyers.


When it comes to the market itself, we're just as busy now as we were in July. With the election over, people who were on a 'wait and see' basis have entered the market now that they know what the situation is. Rising rates also caused some of these people who were on the fence to hop into the market.

We can also see that inventory is still extremely low. Even if everyone who planned on selling their home in the next two years sold their homes in the first quarter of 2017, we'd still be short on inventory. That means sellers have a great opportunity to get top dollar in this market.

If you're thinking about selling or buying a house or you have any questions about the Sacramento real estate market, don't hesitate to give us a call or send us an email soon. We'd love to help you out!

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