Interest Rate Scare - TemporaryTodays interest rates for a 30year fixed conforming loan are back at 4.625% and 7% for a jumbo.
Buyers sitting on the fence should take last weeks spike in rates as a reality check. Last week buyers found that their interest rate shot up almost a full percentage overnight.
Can it happen again...absolutely. We're in an extremely volatile market. Buyer's take advantage while you can. In my recent experience with buyers looking to purchase homes in San Diego, I learned that all signs point to a rebounding marketthe market. My clients are looking for homes all over San Diego in prices ranging from $200K to the mid $600K's. Its been tough, most properties have multiple offers and are being over bid.
This market is reminding me of when I first got into the business in early 2001. Properties were flying off the market. Although I'm not saying we're anywhere near where we were during the boom, I think the the over-bidding, short market times, and scarcity of properties (saleable properties, not tear-downs) is an indication that the market has bottomed out.
I'm strongly suggesting that my clients at the lower end of the range act quickly before there's no more houses in their price.
