Welcome to our weekly market update for the Reno and Sparks, Nevada area.
Interest rates rose again to 5.05% on a 30 year fixed rate with .7 of a point according to Freddie Mac. This is a dramatic jump from 4.81% last week and the highest interest rate since April 2010. A mortgage
amount of $200,000 at last week’s rate would be around $1,050 per month. At this week’s rate it would be $1,079 per month. Now would be a good time to speak with a lender regarding locking in your rate or asking if they think the rates will drop within the coming weeks.
In the Reno/Sparks market there were 104 residential sales from 2/4-2/10. 36% of these were Bank Owned/Corporate Sales, 38% were short sales, 26% were normal owner resale, and 1 relocation. That’s pretty typical for our current market with distressed sales leading the way. The average sale price to list price ratio was 95% which continues the trend from 2010.
In national real estate news there are big happenings with your favorite GSE’s Fannie and Freddie… The Obama Administration is currently looking at options to phase out the two giants… The three current options are largely private, hybrid with federal emergency role, and hybrid with full-time federal reinsurance role….. While this is the best option in the long run there will be higher costs and fees to home buyers in the near future…. Regulators want to require 20% down while most banks push for 10% but wait… Wells Fargo wants 30% down for guaranteed loans.
While nothing is set in stone it looks like those of us who have adjusted to the new norm of real estate will have more to learn.