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Wow. How far we've come on interest rates. My clients buying a home in Vacaville just locked in 6.625% conventional 30yr with only 10% down payment, and no rate buydown, just straight rate lock. We've come a long way. Refinance applications are up over 35% WoW (week over week), and 117% from this time last year. This is no surprise, as most likely those refinances are homes bought last year that had to lock in at 7.25% - 7.5%. Now, interestingly, purchase applications are only up 3% WoW and down -8% from this time last year. As I've pointed out multiple times over the last few weeks and months, buyers will want to see stability here at these levels before diving in head first. With that said, 3% increase ain't nothing, and if we continue to see weekly increases then we can expect some more demand and activity come back into the market. This comes at a time when we usually hit our inventory peak. The supply we've been building over the first 7 months of the year could see a turn back down, which will maintain price levels and also increase competition again with less supply. If you know someone thinking about buying, I wouldn't advise them to wait to get the ball rolling.
On a success note, two of my most recent transactions representing buyers have resulted in appraisals coming in OVER value. This is the results of good timing and being aware of the market dynamics. The current home in escrow that appraised OVER value is in Vacaville. Now, I am not familiar with Vacaville or Solano County, at all. However, I can become familiar within one or two trips and a deep dive into recent area activity and comp sales, and I did. My clients will now be walking into their new homes with a house worth more than what they paid. It's a beautiful thing.
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