Home Loan Interest Rates Rise

“The modest uptick in mortgage rates over the last two months reflects declining recession fears and a more sanguine outlook for the global economy,” says Sam Khater, Freddie Mac’s chief economist. “Due to the improved economic outlook, purchase mortgage applications rose fifteen percent over the same week a year ago, the second highest weekly increase in the last two years. Given the important role residential real estate plays in the economy, the steady improvement of the housing market is a reassuring sign that the economy is on solid ground heading into next year.”

Freddie Mac reports the following national averages for the week ending Nov. 14:

  • 30-year fixed-rate mortgages: averaged 3.75%, with an average 0.6 point, rising from last week’s 3.69% average. Last year at this time, they averaged 4.94%.
  • 15-year fixed-rate mortgages: averaged 3.2%, with an average 0.5 point, rising rom last week’s 3.13% average. A year ago, 15-year rates averaged 4.36%.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.44%, with an average 0.4 point, rising from last week’s 3.39% average. A year ago, they averaged 4.14%.
Source: Freddie Mac

Home Design Trends for 2020

From shiny kitchen cabinets to wooden ceiling beams, several home design trends aim to liven up neutral interiors in the new year. Home remodeling website Houzz recently asked designers to chime in about what design trends they expect to grow more popular over the next few months. Here are a few of their trends.

High-gloss kitchen cabinetry. Flat-panel cabinets with a high-gloss finish are gaining popularity. The shinier finish bounces light around the space. Also, the flat-panel design gives a modern look that makes the cabinets appear like they’re receding.

Wooden beams. More attention in home design is being placed on dressing up the home’s fifth wall. Wood ceiling beams are one way to do that.

Brass accents. Kitchen designs are incorporating more black or dark kitchen cabinets paired with brass or gold hardware for a visual pop.

Source: “10 Design Trends Coming to a Home Near You,” Houzz.com (Oct. 29, 2019)

So where are the homes selling in El Dorado County?

A little over 25 percent of all county home sales last month were in El Dorado Hills where the average selling price of $489,000 was 4 percent less than the average selling price at this time last year. The area has 200 homes currently for sale with a median listed price of $561,000.

Cameron Park was the second most active area for sales with 26 homes closing escrow. The average selling price was $257,500; a decline of $47,600 from September of 2009. 

The Greater Placerville area reported 14 sales with an average selling price of $226,500. Sales were off a third and the average selling price declined $47,500 from a year ago same month. 

Last month the more rural areas in the county experienced increasing prices and sales. What’s up with that? 

Diamond Springs/El Dorado for example, reported the same number of sales this September as last but their average selling price of $260,000 was a $60,000 jump from last year. Somerset/South County reported 25 percent more sales and a $50,000 price increase. Pleasant Valley/Placerville South reported their averages selling price of $258,600 which was a $42,000 bump in price from last year. The $247,000 average selling price for a home last month in Mosquito/Swansboro was a $65,500 increase and prices in Cool/Pilot Hill were up $24,500 for the month. 

On the inventory side we have too many short sales and REO listings competing with individual sellers for the attention of too few buyers. The MLS is currently showing 244 active short sale listings without offers and another 196 listings with offers but waiting for an approval from the mortgage holder. Then there are 173 active REO listings. That adds up to half of our current listings that are financially distressed properties.

Information provided by: Ken Calhoon, Pacerville, California

Enhanced by Zemanta