Market Update: Inflation, Interest Rates, and Local Trends

It is a busy week in the markets! Yesterday’s CPI inflation report showed a slight uptick, largely driven by rising oil prices and the ongoing conflict in Iran. While this news pushed the "10-year yield" higher (which usually drags mortgage rates up with it), there is actually a bit of a silver lining for us right now.

The "Spread" is Saving the Day
Normally, when the economy gets bumpy, the gap between government bonds and mortgage rates (the "spread") gets wider, making your loan more expensive.

• Today: Mortgage rates are hovering around 6.4%.

• The Alternative: If we were seeing the same market behavior we saw in 2023, rates would likely be closer to 7.57% right now.

Despite the headlines, our local market is still showing plenty of life. We are noticing that the $700k – $900k price point is currently the most challenging range in Sacramento and surrounding areas, requiring extra preparation and strategy to navigate.

Preparation is everything. Whether you are buying or selling, having a plan before you hit the market is the difference between a headache and a win.

Here's a good example from a recent client:

Community Spotlight: Playing for a Cause

On Monday night, I had the pleasure of attending a charity poker tournament hosted by Tyler Soderstrom of the Sacramento A’s at the Kimpton Sawyer Hotel downtown.

It was an incredible evening focused on raising funds for two vital organizations:

• EASE (Empower. Advocate. Serve. Equip.)

• Keaton’s Child Cancer Alliance

The energy was high, and it was inspiring to see the Sacramento community and the A’s organization come together for such a meaningful cause.

The Tournament Results

I managed to hold my own at the poker table, making it all the way to the final two tables before my luck ran out! I also jumped into the silent auction to try and snag some memorabilia. While I put up a good fight, I ultimately got outbid on both a signed Roger Craig jersey and a signed Fred Warner jersey.

Even without the jerseys, it was a win for the community, and I’m proud to support the work these organizations are doing right here in our city.

Have a great week!

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

Welcome to luxury living in the highly coveted Camden Passage neighborhood! This stunning 2,871 sq. ft. masterpiece perfectly blends sophisticated design with eco-conscious efficiency. The heart of the home features a chef's dream kitchen, anchored by custom Brazilian imported Titanium granite counters complete with breathtaking natural crystals and a lifetime seal, complemented by a 36 inch Italian gas stove, a Bosch 3-tier dishwasher, and instant hot water. Elegance flows through every inch of the interior, from the hand-scraped oak mocha flooring to the show-stopping 42ft red oak staircase adorned with solid brass balusters. Designed for modern versatility, the home offers 5 spacious bedrooms + FLEX room, and 3 full baths, including a convenient full bed and bath on the main level. The primary suite is a true sanctuary, boasting a spa-inspired bathroom with a curbless walk-in rain shower, a standalone soaking tub, and wrap-around wall tiles accented by gold-framed mirrors, towel warmer and his and her vanities. Beyond the aesthetics, this home is built for the future withO OWNED 10KW Kyocera solar panels (this means only $50/mo electric bill) and a sparkling pool featuring a brand-new variable speed pump and filter assembly. From the black granite and marble fireplace to the meticulously curated finishes, this residence isn't just a house, it's a lifestyle statement. Conveniently located near shopping, eateries and in the highly desirable Elk Grove School District. Just minutes to Camden Lake, walk the tree-lined streets, and enjoy the peace that comes with lake community living. Join the optional HOA and partake in the fun, community events that make this neighborhood so special.

  Listed at $875,000 by Kimberly J. Yee - GUIDE Real Estate
9223 Camden Lake WAY, Elk Grove, CA 95624

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

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