Valley housing market remains slow as mortgage rates stay elevated
FRESNO, Calif. (KFSN) -- With mortgage interest rates still around 6.6%, the housing market remains sluggish.
Paul Salazar, a loan officer with American Pacific Mortgage, says many of his clients are closely monitoring interest rates and waiting for potential decreases later this year.
"So I say to people, just wait. We're looking at about the fall of this year, toward the wintertime. I think we're going to see a rate decrease then. So that also means people who have a high interest rate can refinance," Salazar said.
Salazar said the median home price in the Valley is about $475,000. He said prospective buyers would likely need two incomes and relatively low debt to afford a home at that price point.
"Well, first of all, you probably have to look at two incomes. Or you're probably looking at over $ 85,000 to $ 95,000. And low debt. You gotta have low debt," Salazar said.
Despite current market conditions, Salazar said buyers considering a home purchase should prepare now for increased competition if rates decline.
"This is what I'm telling people right now: you get pre-qualified so that you can make those offers on houses. Because right now, you're only competing with a few people on one house. When interest rates get lower, you're going to have multiple offers and you're going to be competing with a lot of people," Salazar said.
Many industry experts believe interest rates will remain between 6.3% and 6.5% toward the end of the year.
