There are a few things going on in our current market that I want to talk about today.
The Federal Reserve has raised interest rates. However, they raised the federal funds rate, which is what banks use to lend to each other. So, while the federal rate increase could affect credit card loans or car loans, it did not have an immediate impact on mortgage rates.
Mortgage rates are determined more by the marketplace. As of right now, rates are around 4.25%, which is still very good. Many people were worried about the Fed raising rates but the market already anticipated that increase, so mortgage rates have not changed much. Of course, you should always check with your lender and see what kind of rate you can get with your specific financial situation. However, I wouldn’t be too concerned about interest rates if I were you.
Another question I’m getting a lot in our current market is, “Why is it taking so long to close my escrow?” Recently, the San Luis Obispo multiple listing service went through a major overhaul. Appraisers and Realtors alike are dealing with a bit of a learning curve right now. Changing the MLS is like an operating system update for your phone, except much more complicated. So, just be aware that if you are in escrow, it could take a little bit longer.
Recent sales data isn’t where it used to be, which causes issues for appraisers, and some agents aren’t sure where to find listings. It’s almost like we went back to the old days when all of the listings were in a book and agents had to call each other to learn more about homes, which isn’t necessarily a bad thing.
Ultimately, the new MLS system will really help homebuyers and sellers. It will just take a little bit of time for real estate agents and appraisers to adjust. For now, the good news is that you don’t have to worry about the Fed’s interest rate hike. Our market is still very healthy.
If you have any other questions about either of these topics or if you would like to learn more about our current market, give me a call or send me an email. I look forward to hearing from you.