What's going on with Mortgage Rates?

April 17, 2024

What's going on with Mortgage Rates? | Mountain View home of the week 🦅 🌎 ⚓️

Decoding the Mystery of Rising Rates

What in the world is going on with the rates? Didn't the feds promise that they were going to do three rate cuts before the end of the year? And yet what we're seeing is prices going up. I don't get it. This is, here's the problem too, right?

Inventory Shortages and Market Dynamics

There's not enough inventory to meet demand here, right?

I hear places, other places like Florida, certain areas in Florida starting to go down in pricing. Taxes and all these different things, right? I get it. There's like an overabundance of supply in those areas and that's what happens, but for some reason, we're at 6. 88 and here, so you're what, but that's doing is you're pushing a lot of buyers out of the market already stretching on affordability. So I get what the feds are doing.

Election Cycles and Housing Market Predictions

They're probably going to do it right before election time because this is an election cycle. It's pretty normal and it is what it is, but people are so used to being battered and beat up on buying houses. I get where they're coming from, but this is ridiculous.

We'll probably start seeing this come down a little bit at the end of the And I think rates are going to be coming down during the buying cycle. And in fact, they did, right? Like right here, January, they came down and they went up a little bit and now they're hovering.

I wasn't wrong, but this should be at five and a half, not 6. 8. I don't know. I'm frustrated with it. What do you think?

Spotlight on Apple House of the Week

Homes for sale near Apple

This is Apple House of the Week. This is all near. The Apple complex flying saucer is right here. I thought I'd let you see that real quick. And the reason why I picked this one out is a standard 1500 square foot ranch, three bedroom, two bath built in 1960 and it's selling for two and a half million, two and a half million dollars.

Crazy. Let's take a look inside.

Boy, I tell you done with gray. Now, if you look at the cabinets. They look a little grayish, right? It's not really beige. It's not really gray, kind of grayish, with a little bit of wood color in there. So maybe this was a flip. Who knows?

On the market seven days, two and a half million dollars, two and a half million dollars. Crazy mountain view.

Exploring Affordable Housing Options

Mountain View home of the week

The reason why I picked this one is mostly because it's affordable. That's right. Affordable two bedroom, one bath, less than a thousand square feet. Built in 1949. That doesn't even look staged. Maybe they passed in a picture of that dishwasher. I don't know.

That's not virtually staged. Maybe it's the floor and the curtains that are put in there. Let's see how quickly this one sells. This one will probably sell really quick because it's Mountain View. It's downtown 1. 6 million dollars

75 years old on the market 29 days still at 1. 6 million dollars.

Let's take a look at where it really is. The reason why I picked is because it's close to Castro Street, which is the downtown area, right? This whole area is all restaurants. You cross the central expressway and you can saunter back home.

Let's see how big is, it's not even a big lot. I think I'd pass on that one. Okay.

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Bank Owned Properties: A Rare Find

This one is the bank owned of the week for bedroom, two bath, two and a half bath, 2, 100 square feet built in 1971. It's not on the market yet and it's right here. Take a look at where it really is in Milpitas.

And guys, this is the only one that's really available outside of the one in Los Gatos, the only bank-owned that's available. And it's not even on the market yet. This thing's going to fly off the market. So just so you know, here's a map right of San Jose. And these are all. So if you look. There are only these two.

There's one that's a nightmare that you have to, it's red-tagged, you have to have the county come out and tell you what you have to fix before you can actually start fixing it. And then this one that's not even available right now. In. In the area, there are 174 for Santa Clara, and for California. In our area the Bay area, there are 65 bank-owned properties.

That's not a lot. That's nothing.

The Inventory Crisis in Santa Clara County

REO of the Week

So Santa Clara had, I'm sorry. Yeah. Santa Clara had. 67 houses on the market over 40 days. Santa Clara County has 21 houses over 90 days on the market. See, we're just, we don't have enough supply. We don't have enough inventory. San Jose only has 380 houses. We need to be about a thousand, 900 to a thousand.

Santa Clara County needs to be about 2000. I have that list. No, I don't. There you go.

Market Analysis: Seller's Market Continues

Now this is Santa Clara County, right? This chart is right here, historical to 2000 to have it a balanced market, you need to be about 2000 in inventory, right? When it's over here, it's a buyer's market, right? Months of inventory. If it goes over six months, which is right about here, then it's a buyer's market for a few years, it was a buyer's market, but it hasn't been in Almost I'd say 20.

That's June 13. So it's been 10 years since We've seen a buyer's market in 25 years really so going back to that It's still a seller's market We don't have enough inventory and we talk about this every week. Nothing's changed. So anyway, there you go.

Closing Thoughts on the Housing Market

Hopefully, rates will start coming down soon. If you're interested in buying anything, houses are getting selling really quick. So if it's priced right and it looks right, and it's in really great shape, your house is going to have a hundred people at your Open house. If it's overpriced a little bit or the house is dated a little bit, it doesn't really look that great.

You're not going to get as ton of offers, but you're still going to sell the house just because it's a crazy market. That's it for now. I'm Vito with Abitano. We'll see you out there.

Vito Scarnecchia Real Estate Broker, Veteran, Dad DRE#: 01407676 We’re Hiring! 408-705-6817 Vito@abitano.com Website: abitano.com https://www.onereal.com/vito-scarnecchia-1 update your home value: https://hmbt.co/bT7qRJ RELOCATION@ABITANO.COM FREE DESKTOP APPRAISAL https://www.propertyrate.com/agent/vitoscarnecchia If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents! Book appointments here: https://calendly.com/abitano/15min Home Buyers Course YT YouTube.com/SanJoseLiving IG https://www.instagram.com/abitanogroup/ FB https://www.facebook.com/vito.scarnecchia/ LI https://www.linkedin.com/in/vito-scarnecchia/ Blog http://blog.abitano.com/ POD https://spotifyanchor-web.app.link/e/oxdH1Hwfcvb Professional Photography by Kim E https://photosbykime.com / Local Real Estate Market and Home Value Report https://hmbt.co/bT7qRJ Financial Intelligence https://docs.google.com/forms/d/e/1FAIpQLSc0R5pjHIAPguZ5GDEB-fTbGJXKpWK3coK9Khymv_GTWkMnyQ/viewform?usp=send_form https://www.onereal.com/vito-scarnecchia-1 Willow Glen's five most expensive homes https://youtu.be/3A_E2ck0ePg

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