Whoa, did you hear what happened to mortgage rates last Friday?  That was quite the shock to the system.  Will that be enough to kill the buyer momentum before it really kicks off?  I guess we will continue to do what we do here, follow the data, and let it be our guide.  Anyone in the process of getting their pre-approval, offering on homes or in escrow to buy a home woke up Friday morning to a huge shock.  Mortgage rates jumped almost .5% overnight, a huge and rare move.  This is why trying to time the market is such a gamble.  I've been talking about Fed rate cuts, inflation, employment data and mortgage rates for weeks on end, and more recently I specifically highlighted that mortgage rates would need weaker economic data before seeing mortgage rates in the 5s.  The big news last week was the job reports, and specifically the Non Farm Payrolls which were estimated to only be around 147k in added jobs.  The actual number turned out to be 254k, over 100k jobs over the estimate.  This did not show weakness, in fact it showed growth in the only economic data that matters right now.  This created a lot of questions regarding the Fed rate cut path, and big reactions in the bonds and mortgage markets.  A quick look below will show Dara's current 30yr mortgage rate sitting at 6.625%...six days ago it was at 6.125%.

This move can really throw a wrench in the market moving forward.  Sellers that were starting to lean forward may now take a step back.   We do have some pretty important news later this week with the inflation reports of CPI and PPI.  Those two can definitely shake things up again for better or worse.  I've been hearing multiple people talk about waiting for the election to pass.  The election is still  27 days away in November, and then we have the major holidays around the corner.  At this point, my advice to sellers may be to wait until Spring if possible, but again, every situation is different.  Preparation is key.  Asking questions now is key.  Talking to a lender now is key, even if the goal is a year out.

No matter what, home sales happen every single day regardless of market environments.

What are you seeing or hearing? I'd love to know paul@guiderealestate.com
Visit www.paulpelettarealtor.com

Welcome to your dream home in the prestigious Canyon View Estates! This stunning five-bedroom, 5 bath residence offers luxury living at its finest. As you enter, you'll be captivated by the spacious open floor plan, flooded with natural light and designed for both entertaining and everyday living. The gourmet kitchen features top-of-the-line GE Monogram appliances, elegant countertops, and a generous island, perfect for gathering with family and friends. The inviting living areas boast high ceilings and exquisite finishes, seamlessly blending comfort with sophistication. Retreat to the expansive master suite, complete with a spa-like ensuite bath and a private balcony overlooking the serene surroundings. Each additional bedroom offers ample space and its own bathroom, ensuring privacy and convenience for family and guests. Step outside to your outdoor oasis, where you can enjoy the beautifully landscaped yard with an in-ground spa and breathtaking views of the surrounding hills. With an oversized three-car garage and plenty of storage throughout, this home truly has it all. Located in a desirable neighborhood with easy access to local amenities, parks, and top-rated schools, this property is a must-see. Don't miss your chance to own a piece of paradise in Auburn!

  Listed at $995,000 by Bryan B. Lewis - GUIDE Real Estate
13615 Harlequin WAY, Auburn, CA 95603

Know someone who may be interested? Let me know at paul@guiderealestate.com

*These rates are courtesy of Dara Delgado - Home Loans*