Business / Economy

OPINION: Interest rate increase can be a good sign

Renee Kunz with Intero Real Estate shares a few market observations.

The following update and statistics are for November 2016 and have been provided by Renee Kunz, office manager at Intero Real Estate in Hollister. 

The real estate market in San Benito County ended strong in 2016. It was a seller’s market and the average days on the market increased slightly over 2015; however, on average, prices have improved.

Interest rates have ticked up over the past few weeks which in turn is compelling buyers to get off the fence and buy a home now. Do not be scared of this rate increase. It is the sign of a recovering economy! Not to mention rates are still incredible. Rates are under 4.5 percent.! Think back to the early 1980s with rates in the low 20’s. Comparatively, we have it great and new home sales are strong! We have great builders in our local market and they are satisfying a strong need for the consumer.

The real estate market being strong has a positive impact not just for the consumers who own or are selling real estate, but it creates a stronger tax base, provides more workers to fill open positions and in general is a stimulus to our economy in San Benito County.

A recent article posted by Monterey Bay Economic Partnership provides interesting comparative statistics between Monterey, Santa Cruz and San Benito  ounties.

The Sacramento Business Journal announces that Governor Brown is presenting a plan to increase housing construction and reduce costs to builders statewide.

Rates as of Jan. 18, were provided by Intero and are listed below:

30-Year Conforming Fixed INTEREST: 4.125% APR: 4.198%

15-Year Conforming Fixed INTEREST: 3.500% APR: 3.628%

30-Year Jumbo Fixed INTEREST: 4.000% APR: 4.023%

30-Year FHA Fixed INTEREST: 3.875% APR: 4.969%

 

 

 

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Renee Kunz VP & Managing Officer License:00963855

I am the Vice President and Managing Officer of Intero Real Estate Services in Hollister. I was raised in San Benito County and returned to the area with my husband as an adult and we are raising our children here. I have managed the Hollister Office since 2002. We are celebrating our 15th year of business this year. I obtained my broker's license in 1987. I am a third generation Realtor who is passionate about the real estate industry. Follow me on facebook: https://www.facebook.com/thekunzteam/