Mortgage rates bounce back up: Sacramento housing market update

Lauren Williamson is the Financial and Home Services Editor for the Hearst E-Commerce team. She previously served as Senior Editor at Chicago magazine, where she led coverage of real estate and business, and before that reported on regulatory law and financial reform for a magazine geared toward in-house attorneys. You can reach her at [email protected] Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research.Mobile app users, click here for the best viewing experience.The average for a 30-year fixed-rate mortgage jumped back up to 6.52% as of April 11, just the week after dropping to their lowest level in two months, according to Mortgage News Daily. The recent fluctuations have been one factor contributing to the slow start of the spring homebuying season in Sacramento.The average rate on a 15-year mortgage is 5.93%, while 30-year jumbo mortgage rates and 5/1 ARM rates sit at 6.00% and 6.70%, respectively.PHNwYW4+PC9zcGFuPjxzY3JpcHQgYXN5bmM9InRydWUiIHNyYz0iaHR0cHM6Ly9zdGF0aWMubXlmaW5hbmNlLmNvbS93aWRnZXQvbXlGaW5hbmNlLmpzIj48L3NjcmlwdD48ZGl2IGNsYXNzPSJteUZpbmFuY2Utd2lkZ2V0IiBkYXRhLWFkLWlkPSIyNDgxNTAwZi0zZDMxLTQ0MzYtYjZlYy1lYmFlZDk3Y2NkN2IiIGRhdGEtY2FtcGFpZ249ImhlYXJzdHR2LW10Z3B1cmNoLW11bHRpIiBkYXRhLXN1Yi1pZD0iaHR0cDovL3d3dy5rY3JhLmNvbS9hcnRpY2xlL3NhY3JhbWVudG8taG91c2luZy1tYXJrZXQtbW9ydGdhZ2UtcmF0ZXMtYm91bmNlLXVwLzQzNTY4ODA0Ij48L2Rpdj4=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Mortgage rate trendsAlthough the 30-year rate dipped to 6.16% mid-week last week, a cooler-but-not-yet-cold jobs report on April 7 helped lift them back up. The U.S. added 236,000 new jobs in March, while unemployment dropped to 3.5%. Even though employment remains robust, it’s the smallest gain in jobs in more than two years, a sign that the Federal Reserve’s efforts to tame inflation might be starting to turn the tide. “The labor market in March came in like a lion with a banking crisis and more layoffs, and is going out like a lamb with a solid jobs report,” Glassdoor Lead Economist Daniel Zhao said in a statement. “The labor market is still strong, but it’s gliding slowly back down to Earth.”Mortgage rates rose precipitously between early February and the second week of March as key indicators suggested that the Federal Reserve had more work to do in its fight against inflation. However, the failure of Silicon Valley Bank and others in subsequent days destabilized the economy enough that some wondered whether the Fed would raise the federal funds rate at all during its March 22 meeting. The Fed doesn’t set mortgage rates, but its actions influence them, and the more hawkish it is on inflation, the higher mortgage rates tend to go.The Fed ended up raising the target federal funds rate by another 0.25%, bringing it to 4.75%-5%. Fed Chair Jerome Powell indicated during a private meeting with Republican congressmen last week that the Fed will impose one more rate hike in 2023, bringing the benchmark borrowing rate to 5.1%. Sacramento housing market trendsA year ago, the Sacramento housing market was riding high — but now it’s seeing some of the largest declines in the U.S. The median sale price for homes in Sacramento during March was $453,000, a 13% drop over the same month in 2022, according to Redfin. More recent data that accounts for the four weeks prior to April 6 saw the median sale price fall 11.7% over the same period last year, the second largest decline in the U.S. Pending home sales dropped 46.5% in Sacramento during that same four-week period year-over-year, while new listings declined 46.4%. After four consecutive weeks of increases, new mortgage purchase applications nationwide fell 4.1% from the week before, according to the Mortgage Bankers Association. “Spring has arrived, but the housing market is missing the customary burst in listings and purchase activity that typically mark the season,” said Mike Fratantoni, MBA’s SVP and chief economist, in a statement.Another factor complicating matters for potential homebuyers: Many economists predict a credit crunch is coming — when banks restrict borrowing to steady their finances — which would make it harder over the coming months to get a mortgage. Despite the recent ups and downs for mortgage rates, comparing offers among multiple lenders will help you find the best loan for your situation. PHNwYW4+PC9zcGFuPjxzY3JpcHQgYXN5bmM9InRydWUiIHNyYz0iaHR0cHM6Ly9zdGF0aWMubXlmaW5hbmNlLmNvbS93aWRnZXQvbXlGaW5hbmNlLmpzIj48L3NjcmlwdD48ZGl2IGNsYXNzPSJteUZpbmFuY2Utd2lkZ2V0IiBkYXRhLWFkLWlkPSI1NjZkNGU5OC0yMWM1LTRmMjAtOTMyMS01OGZmNmE4MTZiNWYiIGRhdGEtY2FtcGFpZ249ImhlYXJzdHR2LW10Z3JlZmktbXVsdGkiIGRhdGEtc3ViLWlkPSJodHRwOi8vd3d3LmtjcmEuY29tL2FydGljbGUvc2FjcmFtZW50by1ob3VzaW5nLW1hcmtldC1tb3J0Z2FnZS1yYXRlcy1ib3VuY2UtdXAvNDM1Njg4MDQiPjwvZGl2Pg==30-year fixed mortgage interest ratesOn average, the interest rate for a 30-year mortgage on April 11 was 6.52%, up from 6.37% on April 4. 15-year fixed mortgage interest ratesOn average, the interest rate for a 15-year mortgage on April 11 was 5.93%, up from 5.81% on April 4. Jumbo mortgage interest ratesOn average, the interest rate for a 30-year fixed rate jumbo mortgage on April 11 was 6.00%, up from 5.96% on April 4. 5/1 adjustable-rate mortgagesOn average, the interest rate for a 5/1 ARM on April 11 was 6.70%, up from 6.60% on April 4.(All rates are according to Mortgage News Daily.)What determines mortgage rates?Mortgage rates are influenced by a variety of factors, including:Your credit scoreDown paymentYour debt-to-income ratio (DTI)The type of loan you’re gettingLoan termInterest rate type (fixed vs. adjustable)Inflation and the overall economyThe Federal Reserve (which doesn’t set mortgage rates, but it certainly influences them)Should you lock in your mortgage rate?Locking in your mortgage rate fixes the interest rate for a specific period of time, typically 30, 45 or 60 days. If the lender hasn’t processed your loan within the set timeframe, you can either negotiate for an extension of the lock or go with the current mortgage rate. Once you lock in the rate, it will stay the same unless there are changes to your application, including:Switching to a different type of loanChanging the amount of your down paymentChanging the amount of the loan The home appraisal differs significantly from the estimateYour credit score goes downYour income can’t be verifiedMortgage rates have been especially volatile recently, so it’s hard to say whether it makes sense to lock in your rate. If they continue to go up, locking in your rate will protect you. But if they go down, you could miss out on a lower rate. Here are some scenarios where it makes sense to lock in your rate:You feel you’re already getting the best possible rate for now from your lenderYou’re worried about rates going back upYou have enough time to close before the rate lock expiresYou want peace of mind around your mortgage rateYou don’t want anything unexpected happening related to the mortgage rate at closingPHNwYW4+PC9zcGFuPjxzY3JpcHQgYXN5bmM9InRydWUiIHNyYz0iaHR0cHM6Ly9zdGF0aWMubXlmaW5hbmNlLmNvbS93aWRnZXQvbXlGaW5hbmNlLmpzIj48L3NjcmlwdD48ZGl2IGNsYXNzPSJteUZpbmFuY2Utd2lkZ2V0IiBkYXRhLWFkLWlkPSIyNDgxNTAwZi0zZDMxLTQ0MzYtYjZlYy1lYmFlZDk3Y2NkN2IiIGRhdGEtY2FtcGFpZ249ImhlYXJzdHR2LW10Z3B1cmNoLW11bHRpIiBkYXRhLXN1Yi1pZD0iaHR0cDovL3d3dy5rY3JhLmNvbS9hcnRpY2xlL3NhY3JhbWVudG8taG91c2luZy1tYXJrZXQtbW9ydGdhZ2UtcmF0ZXMtYm91bmNlLXVwLzQzNTY4ODA0Ij48L2Rpdj4=Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.This article was reviewed by Jill Slattery, who serves as VP of Content for the Hearst E-Commerce team. Email her at [email protected].

Lauren Williamson is the Financial and Home Services Editor for the Hearst E-Commerce team. She previously served as Senior Editor at Chicago magazine, where she led coverage of real estate and business, and before that reported on regulatory law and financial reform for a magazine geared toward in-house attorneys. You can reach her at [email protected] Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research.

Mobile app users, click here for the best viewing experience.The average for a 30-year fixed-rate mortgage jumped back up to 6.52% as of April 11, just the week after dropping to their lowest level in two months, according to Mortgage News Daily. The recent fluctuations have been one factor contributing to the slow start of the spring homebuying season in Sacramento.The average rate on a 15-year mortgage is 5.93%, while 30-year jumbo mortgage rates and 5/1 ARM rates sit at 6.00% and 6.70%, respectively.

Mortgage rate trendsAlthough the 30-year rate dipped to 6.16% mid-week last week, a cooler-but-not-yet-cold jobs report on April 7 helped lift them back up. The U.S. added 236,000 new jobs in March, while unemployment dropped to 3.5%. Even though employment remains robust, it’s the smallest gain in jobs in more than two years, a sign that the Federal Reserve’s efforts to tame inflation might be starting to turn the tide. “The labor market in March came in like a lion with a banking crisis and more layoffs, and is going out like a lamb with a solid jobs report,” Glassdoor Lead Economist Daniel Zhao said in a statement. “The labor market is still strong, but it’s gliding slowly back down to Earth.”Mortgage rates rose precipitously between early February and the second week of March as key indicators suggested that the Federal Reserve had more work to do in its fight against inflation. However, the failure of Silicon Valley Bank and others in subsequent days destabilized the economy enough that some wondered whether the Fed would raise the federal funds rate at all during its March 22 meeting. The Fed doesn’t set mortgage rates, but its actions influence them, and the more hawkish it is on inflation, the higher mortgage rates tend to go.The Fed ended up raising the target federal funds rate by another 0.25%, bringing it to 4.75%-5%. Fed Chair Jerome Powell indicated during a private meeting with Republican congressmen last week that the Fed will impose one more rate hike in 2023, bringing the benchmark borrowing rate to 5.1%. Sacramento housing market trendsA year ago, the Sacramento housing market was riding high — but now it’s seeing some of the largest declines in the U.S. The median sale price for homes in Sacramento during March was $453,000, a 13% drop over the same month in 2022, according to Redfin. More recent data that accounts for the four weeks prior to April 6 saw the median sale price fall 11.7% over the same period last year, the second largest decline in the U.S. Pending home sales dropped 46.5% in Sacramento during that same four-week period year-over-year, while new listings declined 46.4%. After four consecutive weeks of increases, new mortgage purchase applications nationwide fell 4.1% from the week before, according to the Mortgage Bankers Association. “Spring has arrived, but the housing market is missing the customary burst in listings and purchase activity that typically mark the season,” said Mike Fratantoni, MBA’s SVP and chief economist, in a statement.Another factor complicating matters for potential homebuyers: Many economists predict a credit crunch is coming — when banks restrict borrowing to steady their finances — which would make it harder over the coming months to get a mortgage. Despite the recent ups and downs for mortgage rates, comparing offers among multiple lenders will help you find the best loan for your situation. 30-year fixed mortgage interest ratesOn average, the interest rate for a 30-year mortgage on April 11 was 6.52%, up from 6.37% on April 4. 15-year fixed mortgage interest ratesOn average, the interest rate for a 15-year mortgage on April 11 was 5.93%, up from 5.81% on April 4. Jumbo mortgage interest ratesOn average, the interest rate for a 30-year fixed rate jumbo mortgage on April 11 was 6.00%, up from 5.96% on April 4. 5/1 adjustable-rate mortgagesOn average, the interest rate for a 5/1 ARM on April 11 was 6.70%, up from 6.60% on April 4.(All rates are according to Mortgage News Daily.)What determines mortgage rates?Mortgage rates are influenced by a variety of factors, including:Your credit scoreDown paymentYour debt-to-income ratio (DTI)The type of loan you’re gettingLoan termInterest rate type (fixed vs. adjustable)Inflation and the overall economyThe Federal Reserve (which doesn’t set mortgage rates, but it certainly influences them)Should you lock in your mortgage rate?Locking in your mortgage rate fixes the interest rate for a specific period of time, typically 30, 45 or 60 days. If the lender hasn’t processed your loan within the set timeframe, you can either negotiate for an extension of the lock or go with the current mortgage rate. Once you lock in the rate, it will stay the same unless there are changes to your application, including:Switching to a different type of loanChanging the amount of your down paymentChanging the amount of the loan The home appraisal differs significantly from the estimateYour credit score goes downYour income can’t be verifiedMortgage rates have been especially volatile recently, so it’s hard to say whether it makes sense to lock in your rate. If they continue to go up, locking in your rate will protect you. But if they go down, you could miss out on a lower rate. Here are some scenarios where it makes sense to lock in your rate:You feel you’re already getting the best possible rate for now from your lenderYou’re worried about rates going back upYou have enough time to close before the rate lock expiresYou want peace of mind around your mortgage rateYou don’t want anything unexpected happening related to the mortgage rate at closingEditorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.This article was reviewed by Jill Slattery, who serves as VP of Content for the Hearst E-Commerce team. Email her at [email protected].

https://www.kcra.com/article/sacramento-housing-market-mortgage-rates-bounce-up/43568804

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