Happy November!

November is here, and I am ready to help you find your dream home. I know some of you are nervous about interest rates, but that is why I am here; to help with any questions and concerns you might have about the market.

View our properties in the new Compass Curated Magazine below: 2020 Victorine Road (pages 30-31), 237 Still Creek Road (page 48), and 599 Justin Morgan (page 49).

I am always here to help you with all your real estate needs. Give me a call 24/7 at (510) 406-4836

Best,

Joujou

Today’s Mortgage + Refinance Rates

After spiking early last week, 30-year fixed mortgage rates have remained below 7% for the past several days. Today, the Federal Reserve meets to discuss its next big policy move. Because markets have already priced in the likelihood of another large hike, mortgage rates shouldn’t be impacted by the Fed’s announcement.

Courtesy Of The Insider

Taking The Fear Out Of Saving For A Home

If you’re planning to buy a home, knowing what to budget for and how to save may sound scary at first, but it doesn’t have to be. One way to take the fear out of budgeting is to understand some of the costs you might encounter.

Courtesy Of Keeping Current Matters

Diablo Valley Real Estate October 2022 Report

DID YOU KNOW?

The Government ‘Stimulus’ That Continues

While the multiple government COVID-related stimulus packages wind down, having fueled the economy and individual coffers with excess capital on a scale never seen before, two other stimulus programs are still actively injecting tons of capital into the system and probably contributing to inflation more than we realize:

The 2021 Infrastructure Bill – a miraculously bi-partisan bill – will inject about $1.2 trillion into the US economy and this will likely keep construction costs for everything up. In this bill lies enormous – and essential – spending to upgrade our roads, bridges, etc, but in the process the demands it will place on many construction materials and labor are certain to keep construction costs in other areas high too. Over 5 million metric tons of steel alone will be needed. Now think concrete, heavy-duty construction machinery, etc. This spending has only just begun.
The 2018 Tax Cuts and Jobs Act. Lowered taxes have fueled the consumer and corporations with more disposable income. Lowered rates on individuals, corporations, and estates have added trillions of dollars into the economy and continue to do so through 2025 when they ‘expire’. Lower taxes put more money into the hands of consumers and businesses, who are then able to spend and invest more.

I’m not speaking for or against the stimulus. But it’s important to be aware of where all excess capital and demand come from and then understand what can cause inflation to spike. We are still unsure how much those who moved to low or no-tax states – with high incomes – fueled local inflation by causing massive new demand and price hikes, especially in real estate. I for one am quite certain that I would spend a lot more on ‘stuff’ if my taxes were lower (New York taxes are rough!), but seeing what impact that has on inflation – especially in the luxury markets where I think inflation runs much, much hotter – concerns me that the buying power of those savings is quite quickly diminished by the forces of free markets that simply climb in and charge lots more knowing there is a higher demand to fuel profits.

- By Leonard Steinberg