PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiIHNyYz1odHRwczovL3N0YXRpYy5teWZpbmFuY2UuY29tL3dpZGdldC9teUZpbmFuY2Vfdmlld3BvcnRfZGV0ZWN0aW9uLmpzPjwvc2NyaXB0PjxzY3JpcHQgYXN5bmMgdHlwZT0idGV4dC9qYXZhc2NyaXB0Ij5teWZpV2F0Y2hXaWRnZXQoJ215ZmlXaWRnZXRfMTUnKTtteWZpV2F0Y2hXaWRnZXQoJ215ZmlXaWRnZXRfOCcpO215ZmlXYXRjaFdpZGdldCgnbXlmaVdpZGdldF8xNS4xJyk7PC9zY3JpcHQ+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.No news isn’t necessarily good news with mortgage rates these days, as they remain stuck in the upper 6% range. The only bright spot? They’re not quite reaching the 20-year highs they touched in the fall when they topped 7%. The current mortgage rate for a 30-year fixed-rate mortgage was 6.92% as of June 23, down 0.03% from the week before, according to Mortgage News Daily.That lack of movement has continued to strain the housing market in Sacramento and beyond. The number of houses for sale in May across the U.S. was half what it was in 2019, according to the latest data from the National Association of Realtors (NAR).“Mortgage rates heavily influence the direction of home sales,” said NAR Chief Economist Lawrence Yun. “Relatively steady rates have led to several consecutive months of consistent home sales.”The average for a 15-year fixed-rate mortgage was 6.30%, as of June 23, while the average for a jumbo mortgage was 6.72%. The average for a 5/1 ARM, meanwhile, was 6.90%. It’s not impossible to find better mortgage rates, however, by shopping around with various lenders.Sacramento housing market trendsIn May, the median home sale price in Sacramento was $490,000, down 7.5% from this time last year, according to Redfin. The housing market in Sacramento remains very competitive, with Redfin giving the city a “Compete Score” of 83 (with 100 being the most competitive score). For comparison, Folsom has a Compete Score of 81 and El Dorado Hills has a Compete Score of 75.The number of homes sold in Sacramento is also down year-over-year, and on average homes are staying on the market two days longer than they were one year ago (10 days vs. eight days, so homes are still moving relatively quickly). For reference, in January and February homes in Sacramento were staying on the market for an average of 40 days. The average home in Sacramento sells for about 2% above list price these days. But less home are selling above list price this year. In May 2022 about 70% of homes in Sacramento were selling above list price, whereas in June 2023 that percentage is 58.8%.Is it a good time to buy a home in Sacramento?The answer to that question really depends on how badly you need to move right now. Sacramento remains a very competitive housing market, but that’s unlikely to change any time soon. It’s a great city and many people in the Bay Area realized the benefits of Sacramento and made the move there during the pandemic. Mortgage rates also remain high, but there are no indications that rates will drop substantially in the coming months (if anything, they could even inch up if the Fed decides to raise interest rates in July). So the short answer is: Now is an OK time to buy a home in Sacramento if you need to. National Housing market trendsExisting home sales rose 0.2% from April to May, yet remain down more than 20% year over year, according to NAR. The median existing home price, meanwhile, was $396,100, down 3.1%, driven largely by declines in the South and West. (Prices in the Midwest and Northeast, however, were up.)Homebuyers this spring have been particularly sensitive to changes to mortgage rates. Indeed, as mortgage rates remained relatively flat the past few weeks, so did mortgage applications: They rose just 0.5% for the week ending June 16 over the week before, according to the Mortgage Bankers Association. Homebuyers watching mortgage rates and waiting for the perfect moment to strike might not want to wait too long. Many economists predict an incoming credit crunch — when banks restrict borrowing to steady their finances — which would make it harder over the coming months to get a mortgage. That means potential homebuyers could have a window of opportunity right now to lock in a satisfactory rate. Comparing rates between multiple lenders will help you find the best loan for your situation. Mortgage rate trendsThirty-year fixed-rate mortgage rates have more than doubled from the historically low rates of 2020 and 2021, when rates plummeted below 3%. Some economists are hopeful, however, that the Federal Reserve’s decision at its June 14 meeting to hold the federal funds rate steady will trigger a decline in mortgage rates — albeit a slow one, since it takes a while for the effects of policy to trickle down to consumer products. Mortgage rates are more closely tied with the direction of the 10-year Treasury yield, which fell to around 3.7% in recent weeks on news that inflation is starting to cool. “That normally means the 30-year mortgage rate is around 5.5% to 5.7%,” Yun told Realtor magazine. “Of course, we know mortgage rates have been near 7% recently, but the potential for a decline is real as we progress through the year.”Many analysts zeroed in on the suggestion that two more quarter-point rate hikes will come later this year, once the Fed sees the full impact of its actions to date. In the meantime, there are signs that the Fed’s policy moves are working: The Consumer Price Index rose 4% year-over-year in May, the smallest increase since 2021, though still well above the 2% target.The Fed’s goal for raising interest rates is to slow the economy enough to temper inflation. Economists continue to predict a recession in 2023, and once the economy finally cools, mortgage rates will likely fall, though it’s hard to say exactly when that will happen. 30-year fixed mortgage interest ratesOn average, the interest rate for a 30-year mortgage on June 23 was 6.92%, down slightly from 6.95% on June 16. 15-year fixed mortgage interest ratesOn average, the interest rate for a 15-year mortgage on June 23 was 6.30%, the same as it was on June 16. Jumbo mortgage interest ratesOn average, the interest rate for a 30-year fixed rate jumbo mortgage on June 23 was 6.72%, up slightly from 6.69% on June 16. 5/1 adjustable-rate mortgagesOn average, the interest rate for a 5/1 ARM on June 23 was 6.90%, the same as it was on June 16.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 go up again, 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 Lauren Williamson, who serves as the Home and Financial Services Editor 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].
Hearst 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.No news isn’t necessarily good news with mortgage rates these days, as they remain stuck in the upper 6% range. The only bright spot? They’re not quite reaching the 20-year highs they touched in the fall when they topped 7%. The current mortgage rate for a 30-year fixed-rate mortgage was 6.92% as of June 23, down 0.03% from the week before, according to Mortgage News Daily.That lack of movement has continued to strain the housing market in Sacramento and beyond. The number of houses for sale in May across the U.S. was half what it was in 2019, according to the latest data from the National Association of Realtors (NAR).
“Mortgage rates heavily influence the direction of home sales,” said NAR Chief Economist Lawrence Yun. “Relatively steady rates have led to several consecutive months of consistent home sales.”
The average for a 15-year fixed-rate mortgage was 6.30%, as of June 23, while the average for a jumbo mortgage was 6.72%. The average for a 5/1 ARM, meanwhile, was 6.90%. It’s not impossible to find better mortgage rates, however, by shopping around with various lenders.
Sacramento housing market trendsIn May, the median home sale price in Sacramento was $490,000, down 7.5% from this time last year, according to Redfin. The housing market in Sacramento remains very competitive, with Redfin giving the city a “Compete Score” of 83 (with 100 being the most competitive score). For comparison, Folsom has a Compete Score of 81 and El Dorado Hills has a Compete Score of 75.The number of homes sold in Sacramento is also down year-over-year, and on average homes are staying on the market two days longer than they were one year ago (10 days vs. eight days, so homes are still moving relatively quickly). For reference, in January and February homes in Sacramento were staying on the market for an average of 40 days. The average home in Sacramento sells for about 2% above list price these days. But less home are selling above list price this year. In May 2022 about 70% of homes in Sacramento were selling above list price, whereas in June 2023 that percentage is 58.8%.Is it a good time to buy a home in Sacramento?The answer to that question really depends on how badly you need to move right now. Sacramento remains a very competitive housing market, but that’s unlikely to change any time soon. It’s a great city and many people in the Bay Area realized the benefits of Sacramento and made the move there during the pandemic. Mortgage rates also remain high, but there are no indications that rates will drop substantially in the coming months (if anything, they could even inch up if the Fed decides to raise interest rates in July). So the short answer is: Now is an OK time to buy a home in Sacramento if you need to. Existing home sales rose 0.2% from April to May, yet remain down more than 20% year over year, according to NAR. The median existing home price, meanwhile, was $396,100, down 3.1%, driven largely by declines in the South and West. (Prices in the Midwest and Northeast, however, were up.)Homebuyers this spring have been particularly sensitive to changes to mortgage rates. Indeed, as mortgage rates remained relatively flat the past few weeks, so did mortgage applications: They rose just 0.5% for the week ending June 16 over the week before, according to the Mortgage Bankers Association. Homebuyers watching mortgage rates and waiting for the perfect moment to strike might not want to wait too long. Many economists predict an incoming credit crunch — when banks restrict borrowing to steady their finances — which would make it harder over the coming months to get a mortgage. That means potential homebuyers could have a window of opportunity right now to lock in a satisfactory rate. Comparing rates between multiple lenders will help you find the best loan for your situation. Mortgage rate trendsThirty-year fixed-rate mortgage rates have more than doubled from the historically low rates of 2020 and 2021, when rates plummeted below 3%. Some economists are hopeful, however, that the Federal Reserve’s decision at its June 14 meeting to hold the federal funds rate steady will trigger a decline in mortgage rates — albeit a slow one, since it takes a while for the effects of policy to trickle down to consumer products. Mortgage rates are more closely tied with the direction of the 10-year Treasury yield, which fell to around 3.7% in recent weeks on news that inflation is starting to cool. “That normally means the 30-year mortgage rate is around 5.5% to 5.7%,” Yun told Realtor magazine. “Of course, we know mortgage rates have been near 7% recently, but the potential for a decline is real as we progress through the year.”Many analysts zeroed in on the suggestion that two more quarter-point rate hikes will come later this year, once the Fed sees the full impact of its actions to date. In the meantime, there are signs that the Fed’s policy moves are working: The Consumer Price Index rose 4% year-over-year in May, the smallest increase since 2021, though still well above the 2% target.The Fed’s goal for raising interest rates is to slow the economy enough to temper inflation. Economists continue to predict a recession in 2023, and once the economy finally cools, mortgage rates will likely fall, though it’s hard to say exactly when that will happen.
30-year fixed mortgage interest ratesOn average, the interest rate for a 30-year mortgage on June 23 was 6.92%, down slightly from 6.95% on June 16. 15-year fixed mortgage interest ratesOn average, the interest rate for a 15-year mortgage on June 23 was 6.30%, the same as it was on June 16. Jumbo mortgage interest ratesOn average, the interest rate for a 30-year fixed rate jumbo mortgage on June 23 was 6.72%, up slightly from 6.69% on June 16. 5/1 adjustable-rate mortgagesOn average, the interest rate for a 5/1 ARM on June 23 was 6.90%, the same as it was on June 16.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 go up again, 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 closing
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 Lauren Williamson, who serves as the Home and Financial Services Editor for the Hearst E-Commerce team. Email her at [email protected].
https://www.kcra.com/article/sacramento-housing-market-june-28/44347437
