The Associated Press reported this week: “The Federal Reserve kept its key short-term interest rate unchanged Wednesday for a second straight time but left the door open to further rate hikes if inflation pressures should accelerate in the months ahead.
“The Fed said in a statement after its latest meeting that it would keep its benchmark rate at about 5.4%, its highest level in 22 years. Since launching the most aggressive series of rate hikes in four decades in March 2022 to fight inflation, the Fed has pulled back and has now raised rates only once since May.
“The central bank’s latest statement noted that the economy ‘expanded at a strong pace’ in the July-September quarter and that job gains ‘remain strong.’ And it reiterated that future rate hikes, if the Fed finds them necessary, remain under consideration.”
How has this translated in our local market?
I am not sure that local buyers have taken a moment to investigate what their rates may be yet this month. Meaning that homebuyers may still have the sticker shock of “8 rates” and have stepped back from the home buying market.
Current rates, according to my lender, are hovering at 7.5% to 7.75% with no points. And I’m hearing that some sellers are open to credits toward a buyer’s loan, to make it more affordable as well.
Our local inventory has increased, which remains typical for this time of year. We’re also seeing homes that are priced right in certain areas go pending within a 20-day window. Promising, in my opinion.
In fact, one local Realtor priced a home in Concord super low and received 10 offers, bringing the pending price in line with market value for that area. Strategic approach?
In the coming week, I encourage any homebuyers to review the current market and check in with their lender. See if any homes might be interesting for you/your family. If so, reach out to your Realtor and find out if a competitive offer or terms might work for that seller.
You never know until you ask!
