Marilyn Dashe Newsletter | November 2016
Welcome To My November 2016 Newsletter
It’s one week before Thanksgiving, and our gorgeous San Diego weather continues. It’s slightly cooler now, but that just means it’s not 80 degrees; it’s just almost sweater weather. It’s just perfect for taking long walks and hikes outside.
Early in the month, I went to Minneapolis to see my family and to attend the wedding of a long-time friend. Even though we prepared for cold weather, it turned out to be 70 degrees and sunny the whole time. We loved the glorious fall color and even got to do a little raking. On Sat. night, we went to the wedding at a beautiful venue at the Guthrie Theater in downtown Minneapolis overlooking the Mississippi River. And then on our return to San Diego, we all shared election night on November 8th. I had a party at my house for friends and colleagues and we ended up having a stressful night as the surprise results came in. It was good to be surrounded by friends. And of course, the fallout has continued, affecting people personally and affecting the markets (see News You Can Use). It’s an interesting time for our country.
RE/MAX At The Coast continues to roll along in spite of the election and this supposedly “slow” time of the year. Sandrine Gibson, one of our newer agents, is closing her first escrow this month and also had her first listing appointment. We are so excited for her. I have a new escrow in Carlsbad with a first-time buyer from the Midwest who is so excited to have found a detached home near the ocean; it needs some cosmetic fix-up, but he knows how to do it. It will close very early in December. Our agents, Deanna Russo, and Mark and Carrie Browne also closed escrows this month. And we had one of our most fun and successful office social events ever! Laurel Roberts, our agent and resident artist, hosted a Wine and Paint party at the office. Every one of us (even those of us who had never touched a canvas with a paintbrush) left the office with our very own picture; it was so much fun, and we were all totally amazed that we could do it!
According to the San Diego Union Tribune, mortgage rates have surged nearly half of a percentage point since Donald Trump’s election. Housing analysts say there are two reasons for the change. Foreign investors have pulled out of the bond market because of a lack of confidence, and American investors are taking money out of bonds to put into stocks. Both motives have pushed mortgage rates to their highest point in 2016.
A typical 30-year, fixed-rate mortgage had an interest rate of 3.59% the day before the election and had jumped to 4.02% a week later. Rates are remaining in the low 4’s, according to local lenders. Based on the change, monthly costs for a San Diego County median price home at $495,000 have gone up roughly $97/month, based on a 30-year fixed mortgage with 20% down.
Local lenders anticipate that the rates may go back to below 4% as the shock of the election wears off. Lenders say that these rates react quickly and come back slowly. While no one can predict a long-term effect on interest rates, most lenders are being cautious and telling buyers to wait a couple of weeks. This news should not prevent you from buying a house before the end of the year. There is a lot of inventory with reduced prices and very motivated buyers, and you may be able to qualify for a very good value.
Wishing you and your family a very happy and healthy Thanksgiving holiday! We are taking the train to Santa Monica and will spend the holiday there going to the beach and taking in an art museum. Happy Holidays and when you have any referral or question about real estate, please remember us at RE/MAX At The Coast! We love your referrals!
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