The First Interest Rate Hike in 3 Years

Every two weeks, more or less, California brokers statewide including myself attend and participate in a Zoom call about market conditions, Realtor professional activity, legal counsel advisories, economic updates and other input from our statewide officer leadership. I won't include the entire presentation, but here are two slides from the economic update provided by our Chief Economist of C.A.R.

9-16-26 Rate Hike

Seller Motivation to Sell

 

Contrary to the talk, and hopes, of market sources for many many months, the Federal Open Market Committee met and raised rates on September 16, 2026--with the possibility of another increase before the end of 2026.  What will this mean for buyers and sellers in the future? It means that serious buyers may possibly need to consider which areas are within their consideration, which type of loan will work best for them and investigate conventional, FHA, VA, as well as down payment assistance programs, and considering seller buy down scenarios. Online searches may get you started, but buyers should understand how their credit score and debt will impact the interest rate they may get, and the best way to do this is find an experienced loan officer who will take down all your information and work towards a total loan pre-approval before you start deciding on a particular area or property. Not all lenders work with all down payment assistance programs, for instance, but also may have their own program to offer. Time will be your friend.    

Sellers also need to consider their options in property pricing, property preparation and negotiation with the buyer and their ability to sell first and buy later. Property showing condition is important to consider if you are looking for the best price, in most situations.  A fixer house in a desirable neighborhood may sell fairly quickly, but if you're thinking of selling a condominium, be aware of potential insurance issues for a buyer, that FNMA is now looking a full HOA document reviews for giving final approval to the buyer, and if all necessary repairs have been completed concerning the common areas. 

 What do you have questions about? I'm here to help!

 Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996