Interest rates are still driving the Oakland and Berkeley real estate markets. ;
After a brief pullback in January and early February, rates again are headed up. As of February 16, the average 30-year fixed mortgage rate was 6.78%.
This is unwelcome news to East Bay home buyers, who were just beginning to feel ok about interest rates in the mid 5% range. This volatility in rates makes it hard for buyers to gauge what they can truly afford and tends to keep them on the sidelines.
Buyers have always shopped around for the best mortgage rate, but rarely dig deeper. Freddie Mac published a report last week that quantified the benefit of getting multiple mortgage quotes, finding that buyers who got four quotes saved $1,200 more each year than buyers who got only one. Buyers who shopped around could have significant annual savings.
When I meet with new buyers, I always discuss the importance of getting preapproved with different types of lenders. Mortgage brokers versus banks, that sort of thing. In the East Bay real estate market, a local lender with a reputation to protect will work hard to resolve problems that arise quickly. Sellers know this. Sellers’ agents know this. This reality means having an online lender can sometimes be disadvantageous. Not all lenders are created equal.
Balancing the lowest interest rates available against a lender who can offer a smooth transaction and can help get your offer accepted has always been a tightrope I help my clients walk. Helping buyers find the best rate with a skilled, knowledgeable lender is an important part of what I do, now more than ever.