Yes, interest rates went up this week. Again. Conforming loan rates are now hovering around 4.2%-4.3%. The lenders that I've spoken with don't expect them to go down much in the near future, if at all. They are still at historic lows, but that probably doesn't make you feel much better if you're a buyer.
And here are some interesting local stats from California Association of Realtors:
- From 2001 - 2007, all-cash purchases were about 6.2%-8.4% of total sales,
- In April 2013, all cash purchases were 29.3% of total sales,
- 27% of California sales are to non-U.S. citizens,
- 66% of investor buyers are holding for the long term,
- 75% plan to hold for about 6 years,
- 25% are flippers,
- 67% investors are paying cash,
- For those who sell, the return on investment is around 14%,
- 78% of investor purchases were single family homes,
- 14% were multi-family homes.
Will this all change? Of course. When? I don't know. But the real estate market has really surprised all of us with its quick turn arounds in the last few years.
