Federal Reserve Update
On Wednesday, December 14 the Federal Reserve raised its key short-term rate by a quarter-point from 0.5% to 0.75%, which is still considered low. Most banks then raised their prime rate to 3.75% from 3.5%.
It was the first rate hike in 13 months. For most of the last decade interest rates were untouched, in an attempt to improve the economy after the financial crisis. If you applied for a credit card or even a mortgage, these low interest rates certainly helped. With signs of the economy improving the Fed indicated there may be two or three additional interest rate increases in 2017.
With the current average 30 year fixed rate mortgage at about 4.16% and the very likely hikes in 2017 I would encourage buyers and sellers to act sooner rather than later.
Single Family Homes in Folsom - Current Month vs Previous Month
The current average sold price is $509,000, up 1.8%
The average price per square foot is $235.00, up 3.1%
Inventory is at 1.7 months, up 6.4%
Average days on the market is 30 days, down 23.1%
For Sale: 109, down 25.3%
Pended sales: 92, up 17.9%
Sold: 65, down 30.9%