Dear SAR REALTOR®and Affiliate Members,
Back in June, we saw an abrupt increase in mortgage interest rates in response to financial market volatility that occurred as a result of higher than anticipated inflation numbers. This last week, we also saw an abrupt increase in mortgage interest rates, again thanks to financial market volatility after high inflation metrics and the Federal Reserve increasing the Fed Funds rate. To quote one of my lender friends, Conforming 30 year fixed mortgage rates took “a peak over the wall” at 7% and have since retreated back into the 6s again. I was a newer REALTOR the last time we saw these rates in 2006/2007.
When I bought my first condo in 1998 at age 20, my interest rate was 7.125%. Personally, I had no context for how good or bad this rate was, but my parents emphasized how amazing this rate was because the house i grew up in that they bought in the early 80s came with a 14% interest rate.
I hear some people exclaim Armageddon is upon us. Spoiler alert: it’s not. It’s not time to panic. It’s time to retool your skills, empower yourself to meet your clients‘ needs, and candidly it’s just time to get used to what is, quite honestly, a more normal interest rate environment. The low mortgage rates we’ve all grown accustomed to have been maintained at an artificially low by a Federally-subsidized bond market.
Is this a little painful: yes.
Your association is here to support you with a wide variety of educational offerings available on-demand, hybrid, and in-person. I strongly suggest carving out some time to refresh your existing skills and learn some new ones. View our Education Portal.
Our amazing Education Committee is chaired by Katie Butler of Better Homes and Gardens Reliance Partners and Vice-Chaired by Jim Pojda of Lyon Real Estate. Their committee is constantly reviewing new and course offerings for members that are relevant to current needs and market conditions. If you have a suggestion for a class you’d like to see SAR offer please email Judy Shrivastava, staff liaison to the committee at firstname.lastname@example.org.
In addition to our education offerings, SAR has numerous free Forums and other meetings where you can sharpen your skills. This next week I highly encourage you to attend our Main Meeting on Tuesday, featuring our speaker City of Sacramento police chief Katherine Lester, who will address realtor safety and our Sacramento community. On Thursday next week, we have the Affiliate & Finance Forum which should be extremely valuable for members who want to hear about the current market conditions. And ongoing, we have regional meetings, and more.