Will Lower Rates Escalate Sales?

The real estate industry will soon see what kind of impact weeks of declining mortgage rates have had on home sales. Will it provide the boost some experts are predicting?

Since early November, the 30-year fixed-rate mortgage has fallen nearly half a percentage point, from 4.94 percent to 4.45 percent, at the end of this week. This could provide an important incentive for potential home buyers to make a move. The 30-year rate, which didn’t budge in the latest week of reporting, was on a downward trend for six consecutive weeks prior. Existing-home sales in November were already bouncing back from unusually low volume in the summer months, gaining 1.9 percent month over month, due largely to stability in the overall economy, according to data from the National Association of REALTORS®. But when NAR’s data for December existing-home sales is released next Tuesday, it may reveal whether lower mortgage rates have escalated sales gains.

Freddie Mac reports the following national averages for the week ending Jan. 17:

  • 30-year fixed-rate mortgages: averaged 4.45 percent, with an average 0.4 point, unchanged from last week’s average. Last year at this time, 30-year rates averaged 4.04 percent.
  • 15-year fixed-rate mortgages: averaged 3.88 percent, with an average 0.4 point, dropping from last week’s 3.89 percent average. A year ago, 15-year rates averaged 3.49 percent.
Source: Freddie Mac; “The slowing U.S. housing market may have finally bottomed,” Yahoo! Finance (Jan. 17, 2019)

Historic Placerville, CA., #28 of 50 Best Small Towns in America

Although the gold rush is long over, there is a “wealth” of adventure and activity to be found in Placerville, the heart of the historic Mother Lode. Centrally located in the Sierra Nevada foothills between the Sacramento valley and Lake Tahoe basin, Placerville is a popular locale situated just off Highways 50 & 49.

With its historical landmarks, downtown ambiance with a plethora of shopping and dining experiences, various hotel/motel and bed/breakfast accommodations, local wineries and farms, and an abundance of local recreational activities, Placerville has something for everyone. For more information please check out these links:

Reviews: http://www.bestchoicereviews.org/50-best-small-town-downtowns-in-america/

El Dorado Visitor’s Authority http://www.visit-eldorado.com/

VIDEO of Placerville, region: http://www.youtube.com/watch?v=mGPoK87artA