July 2016 – Falling Interest Rates + Strong Economy

Britain’s June vote to exit the EU has already had an impact on the market in the US, including here in Napa. Mortgage rates have dropped almost a quarter of a percent, making the monthly payments on our pricey housing slightly more affordable 카오스베인 다운로드. The result is that it will support continuing increases in sales prices, as decreases in interest rates always do. For example, a $1,000,000 loan at 3.75% costs $4,631/month, but at 3.5% you can borrow $1,032,000 for the same monthly payment 다운로드. And monthly payments are what buyers focus on. The Federal Reserve Bank of San Francisco published its upbeat Economic Forecast in June which indicated continued strong job and economic growth, continued low business and mortgage interest rates (this was published prior to the vote in Britain), coupled with historically low unemployment and inflation below the Fed’s target of 2% 다운로드. The conclusion is that they see Gross Domestic Product growth around 2% for the year, at a “pace consistent with moderate ongoing expansion, which we expect to continue over the next few years.”

For more information on our local market, see hereJuly 2016 KWNV Market Report Newsletter