FEDERAL RESERVE BANK HOLDS FIRM ON INTEREST RATES
Janet Yellen, Chair of the Federal Reserve Bank, met Wednesday with members of her Board of Trustees and told them now is not the time to raise mortgage interest rates. Current 30-year fixed rate mortgages remain below 4-percent for those with outstanding credit scores. Yellen, under political pressures no doubt with the upcoming Presidential Election, decided to hold the rates at these extremely low numbers but said things may change in the future.
As we have been telling you, now is the time to get prequalified for your chance to move up to a new home or purchase your first home. Contact a local mortgage lender to get help in moving forward to your new home.
Well some readers have been agreeable to making their move now. After a couple months of lackluster growth in transaction volume, California existing home sales rose to their highest level in nearly four years in June. Sales surpassed the 400,000 mark for the fourth consecutive month according to the California Association of Realtors.
Closed escrow sales of existing, single-family, detached homes in the state totaled a seasonally adjusted annualized rate of 450,960 units last month according to information collected by CAR from more than 90 local Realtor associations including the Tulare County Association of Realtors representing Visalia, Tulare and Porterville.
The June figure was up 10 percent from the revised 409,840 level in May and up 2.2 percent compared with home sales in June 2015 of 441,450. The statewide sales figure represents what would be the total number of homes sold during 2011 when sales of existing homes rose 11.3 percent from December 2010.
“Market conditions suggest that demand for housing will remain steady through the rest of the summer,” said CAR President Pat “Ziggy” Zicarelli. “However, inventory is still tight, especially at the low end of the market, and this keeps competition for those homes at an extremely high level. The recent march of mortgage rates to ever lower levels will also add to the strong demand for entry-level homes.”
Here in Visalia, rising demand combined with tight supply kept upward pressure on prices in June. The median price of an existing, single-family detached home increased to $211,820 in 2016 from $205,260 in June 2015. Our new home builders have beautiful new construction reaching into the low $400,000 range. There are many subdivisions in the $200’s and $300’s in Visalia, Tulare and Porterville.
Call your local mortgage lender to get prequalified and don’t forget to ask them where the new subdivisions are located in your town.
Country Club Mortgage
559.734.5000 Central Valley Phone
805.544.2775 Central Coast
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400 E. Main St. Suite 120 Visalia, CA 93291
6795 N. Palm, Suite 101 Fresno CA 93711
4211 Spring Tree Ln. Bakersfield CA 93314
1204 Nipomo St. San Luis Obispo CA 93401
NMLS # 293517 | DRE # 01474957
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