Dolores Robles - Realtor

12/15/2022

"We believe mortgage rates have peaked and we are on the downward, but we will not get back to 3% any time soon. We are expecting around 5.5% this time next year." - Dr. Lawrence Yun

12/03/2022

California zip codes switching from homeowners to renters
Contact me to discuss the latest scoop in real estate!

The California zip codes with the fastest-growing share of renters from 2011 to 2022 include: Los Angeles is home to a glut of renters as one of the most populous (and expensive) metros in the U.S. In the meantime, real estate agents looking ride the renter wave and survive the still undeclared rece...

09/26/2022

The salary you need to afford a home in California

Dolores is a real estate agent with Century 21. Check out Dolores's listings or office listings.

09/20/2022

Ask Me Anything!
Have questions about real estate but not sure where to start?

Have questions about real estate but not sure where to start?

09/13/2022

5 Reasons Why Real Estate Is Considered A Good Long-Term Investment

Dolores is a real estate agent with Century 21. Check out Dolores's listings or office listings.

07/08/2022

What Does an Economic Slowdown Mean for the Housing Market?
What Does an Economic Slowdown Mean for the Housing Market? | MyKCM

According to a recent survey, more and more Americans are concerned about a possible recession. Those concerns were validated when the Federal Reserve met and confirmed they were strongly committed to bringing down inflation. And, in order to do so, they’d use their tools and influence to slow down the economy.

All of this brings up many fears and questions around how it might affect our lives, our jobs, and business overall. And one concern many Americans have is: how will this affect the housing market? We know how economic slowdowns have impacted home prices in the past, but how could this next slowdown affect real estate and the cost of financing a home?

According to Mortgage Specialists:

“Throughout history, during a recessionary period, interest rates go up at the beginning of the recession. But to come out of a recession, interest rates are lowered to stimulate the economy moving forward.”

Here’s the data to back that up. If you look back at each recession going all the way to the early 1980s, here’s what happened to mortgage rates during those times (see chart below):

What Does an Economic Slowdown Mean for the Housing Market? | MyKCM

As the chart shows, historically, each time the economy slowed down, mortgage rates decreased. Fortune.com helps explain the trend like this:

“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”

And while history doesn’t always repeat itself, we can learn from it. While an economic slowdown needs to happen to help taper inflation, it hasn’t always been a bad thing for the housing market. Typically, it has meant that the cost to finance a home has gone down, and that’s a good thing.

Bottom Line
Concerns of a recession are rising. As the economy slows down, history tells us this would likely mean lower mortgage rates for those looking to refinance or buy a home. While no one knows exactly what the future holds, you can make the right decision for yourself by working with a trusted real estate professional to get expert advice on what’s happening in the housing market and what that means for your homeownership goals.

07/07/2022

Algunos aspectos destacados Es importante entender que la historia demuestra que una desaceleración económica no equivale a una crisis de la vivienda. En 4 de las últimas 6 recesiones, los precios de las casas realmente apreciaron. Los precios de las casas solo cayeron dos veces, mínimamente a p...

07/07/2022

Puede ser tentador, especialmente con lo candente que ha estado el mercado de la vivienda en los últimos dos años, considerar vender su casa por su cuenta. Pero el mercado actual se encuentra en un punto de inflexión, por lo que es más esencial que nunca trabajar con un profesional en bienes ra....

06/27/2022

06/17/2022