As we head dead on into summer, SCV home prices are holding their own.
Can you believe it? We’re halfway through 2015. With that, we’ve seen the Santa Clarita real estate market continue to push forward in a positive fashion. Interest rates are still holding just over 4 percent, and the buyers are out there ready to realize their dream of owning a home.
Recent statistics from the Southland Regional Association of Realtors showed the median price of single family homes and condominiums remained basically the same from May to June of this year. Condo prices did not budge, while single family home averages dropped by a few thousand dollars to a median price of $521,000. This type of fluctuation is not unusual, and is typical of the overall Santa Clarita marketplace during the summer months.
Will interest rates rise soon?
For nearly a decade, the Federal Reserve has held off in raising the base interest rate. This is the rate banks and lending institutions pay when they borrow money. In a congressional session that took place over two days, Fed Chairperson Janet Yellen said:
“If the economy evolves as we expect, economic conditions likely would make it appropriate at some point this year to raise the federal funds rate target, thereby beginning to normalize the stance of monetary policy.”
So what does that mean? An improving economy may also bring about a rise in inflation, which is something the Federal Reserve would like to avoid. In this case, raising interest rates may curb inflation, which is their hope. In any case, analysts predict that should the Fed raise rates, it may be later this year, but no later than December.
Can I qualify for a home loan?
There’s only one way to find out for sure. Contact us to find out how what it takes to qualify for a mortgage loan, and how we can help you realize all of your real estate goals.Email Contact Form