Current Mortgage Rate Increase: Good or Bad for Home Sellers?

5-Week Streak Broken

Two weeks ago I noted here on the Noble Real Estate Blog that mortgage rates had dropped for the 5th straight week.  In that post I discussed how that was good news for both home buyers and home sellers in Westlake Village, Thousand Oaks, and Newbury Park, CA.

Well, times have changed - Friday showed us an increase for all loan types.  The table below (courtesy of bankrate.com) shows the change over the past two months.

Mortgage rates	30-year fixed	15-year fixed	5/1 ARM	30-year jumbo
6/4/2014	4.32	3.41	3.31	4.35
5/28/2014	4.25	3.35	3.24	4.29
5/21/2014	4.29	3.38	3.21	4.31
5/14/2014	4.33	3.42	3.31	4.35
5/7/2014	4.37	3.45	3.34	4.39
4/30/2014	4.44	3.51	3.35	4.45
4/23/2014	4.48	3.54	3.34	4.47
4/16/2014	4.43	3.48	3.32	4.43
4/9/2014	4.47	3.52	3.34	4.48
4/2/2014	4.54	3.58	3.34	4.54

Will Rates Continue to Climb?

2014 started with the 'experts' expecting the mortgage rates to climb all the way up to 5% (for a Fixed 30-Year).  However, we can see that it's taken nearly 2 whole quarters for rates to reach 4 and 1/3 percent.  

Now that does not mean it cannot climb up reach the expected 5%, but so far the 'climb' has moved slower than expected.

What Does This Recent Rate Increase Mean for Home Sellers?

Realistically, the percent change will have little immediate impact on Home Sellers in the Conejo Valley.  However, if the rates continue to climb it does mean that the number of home buyers could decrease.  

And? (you might be asking)

Typically speaking, as the number of buyers shrinks (due to fewer people wanting to borrow money because of increased mortgage rates) the home buying competition diminishes, which means home values settle instead of climb.

Therefore, if you're looking to sell your home in Westlake Village, CA you would probably be better served to do so sooner than later since the home loan rates could increase considerably still this year.

What If I'm Not 100% I want to Sell?

The best place to start is by having as much information as possible.  And perhaps the most valuable information, in terms of selling your home, is knowing how much your house is worth.

There are websites that claim to provide value estimates of homes.  However, as I shared in my post about pricing, only a Comparable Market Assessment (CMA) will give you an accurate valuation of your home in today's market.

Only a licensed real estate agent can generate such a report.

If you're considering selling your home in Westlake Village, or Thousand Oaks, or Newbury Park, CA, or if you're just curious about your home's value, I would be happy to prepare one for you - absolutely free with no obligations!

Shoot me an e-mail to request a CMA, or if you have any questions whatsoever regarding real estate - I'm here to help!

Margie Noble
Broker/Realtor
Noble Real Estate
BRE License 01859419
www.venturacountyre.com
Phone: 805.844.6257
E-mail: mnoble4re@verizon.net