Below is a 10 year chart of the 10-Year Treasury Note Yield, this is the index that mortgage rates are based on. If your in the position to purchase a new home or investment, the cost to borrow money has not been cheaper to in a Looooooooong time. You can see the “average” 10 year range in yellow and we are now below that for the 2nd time in the last 10 years. Now, the bank you borrow the money from will add 2% or so the yield, this is how they make there money. If your looking to purchase property and you have good credit and a solid down payment you may be able to lock in a loan in the 4.2-4.8% range.
If you currently own a home and are paying and interest rate of more than 4.25% – 4.5% on your loan it may be worth to see if you can take advantage of these low rates.
As we enter the last month of summer, or the end of the tourist season for the central coast, sales have begun to slow a bit. We had 18 sales last week which is just about average (20) for the area. July was the peak this year for sales with 141 closed escrows during the month. For more on this years real estate activity check out my post “SD’s Central Coast Estate Sale’s Pulse” soon to be published.
