Interest Rates Fuel Housing Market

California home sales perk up in July for first time in more than year. The lowest mortgage interest rates in nearly three years helped jump start California 's housing market to post the first year-over-year sales gain and highest sales level in 15 months according to the California Association of Realtors (CAR). The 30-year, fixed mortgage interest rate averaged 3.77 percent in July, down from 4.53 percent in July 2018, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 3.47 percent, compared to 3.84 percent in July 2018. While it's encouraging that home sales crept higher in July, the market will continue to be challenged by an overarching affordability issue. San Diego County comparatively speaking is still more affordable than other neighboring California areas such as: Orange County, Los Angeles County and the Bay Area. Pricing continues to be of the utmost importance when marketing a home, as those homes priced accordingly continue to attract at least 1 or more interested Buyers resulting in offer(s). Those Sellers who are priced above what the market perceives their value to be continue to sit on the market. According to CAR, Mortgage applications have increased as well this summer, mainly led by a surge in the number of refinance applications which went up by 116% from a year ago. If you have questions about whether refinancing your home is a viable option or debating on whether to move up to that bigger home or downsize into a smaller home...........give me a call so we can discuss your options and what's best suited for you and/or your family.