When Will Mortgage Interest Rates Go Down?
When will mortgage interest rates go down, the caller asked yesterday. Sure, he’s just doing construction across the street or maybe he lives in the neighborhood. Not really a buyer, he says. After a much longer discussion, turns out the caller is actually a vet with a VA eligibility. What he really wanted to know was is it a good time to buy a home?
But like so many other first-time home buyers today, he asked the question of when will mortgage interest rates go down. As though that is some kind of secret measurement of the gateway to homeownership.
Never. That’s my answer. Our days of historically low interest rates, oh, please dear, God, let them be over. Interest rates have been superficially suppressed for almost 10 years and are not an indicator of a strong economy.
You live long enough, you see everything. Why, in 1995, I recall feeling almost giddy that I was able to score an interest rate of 8%. Also, when making the transition in the 1970s from escrow officer to real estate agent, I saw first-hand the days of 18% to 20% interest rates.
So when rates hover around 5% today, which gets buyers fretting and wondering: when will mortgage interest rates go down, part of me says they have no idea how good they have it. It also makes me want to ask: hey, have you looked at your VISA card statement lately? Making the minimum payment, are we? How much is that interest rate?
Quentin Fottrell, personal finance editor at MarketWatch, says making minimum payments on a credit card is insane. He offers the following: “A $2,000 credit balance with an 18% annual rate, with a minimum payment of 2% of the balance, or $10, whichever is greater, would take 370 months or just over 30 years to pay off.”
Yet, you don’t hear anybody complaining about that 18% credit card interest rate. Instead, they focus on a 5% mortgage interest rate and wonder when will mortgage interest rates go down.
Further, what do borrowers have to show for paying on that 18% credit card rate? Not a house, that much I can tell you. Generally, it’s impulse purchases or depreciating items. For some borrowers, all living expenses are financed, like gas and groceries.
However, facts are prices are soft on many homes as inventory rises, which makes it a great time to buy. Our Sacramento housing trends for September 2018 show double the number of homes for sale since January. Plenty of selections. Just lock in that interest rate. Because every one-half of a percent drops your purchasing power by about $25,000. That means if you had hoped to buy a $400,000 home, you can only afford $375,000.
Sacramento Fruit Trees Under Quarantine for Oriental Fruit Fly
Bad news yesterday from Soil Born Farms that the city is under quarantine for Oriental fruit fly. This means the Harvest Sacramento program through Soil Born Farms will not happen this winter. Big bummer for many reasons. Harvest Sacramento is made up of volunteers who go to individual homes throughout the city of Sacramento, one neighborhood at a time, to pick fruit. Yes, they pick all of your fruit, for example, so you don’t have to, but they do much more. Harvest Sacramento donates the fruit to charity to feed the hungry and they give you a tax deductible receipt.
We signed up for this program years ago when we discovered we don’t eat enough oranges to really justify an orange tree in our yard in Land Park. They are big, fat juicy naval oranges. But we are too lazy to make orange juice and we just don’t consume a lot of citrus.
Further, just for the record, we did not plant the orange tree. It was a young fledgling tree, still staked to prevent falling over when we bought the house.
One day it did fall over. I was shocked. Looking out our kitchen window, I witnessed a big tree that had fallen face first into the mud after a rain storm. Fearing it was dying, I ran out and staked it up again. Somehow, it survived and now it is mashing our fence, hanging over into the neighbor’s yard. Nobody likes it. But we keep fertilizing and allowing Harvest Sacramento to pick the oranges every winter.
The quarantine for oriental fruit fly means you can eat your own fruit but you cannot throw it away in green waste. If you need to dispose of your fruit, you need to double bag it in plastic bags and put it into your garbage.
Below is a map of the area under quarantine for Oriental fruit fly. The quarantine prohibits sharing or sales of fruit. For more information, call the California Food & Agriculture Pest Hotline at 800.499.1899.
Image: California Department of Food & Agriculture
Authentic Realtors Display a Voice of Reality and Reason
Authenticity seems to be a rare commodity in a search for authentic Realtors. You seem like a real person to me, is what many of my clients say when they call for the first time. Of course I am a real person. Do you think I am a robot? An alien? A cat reincarnated in human form? But what I think they are trying to say is I don’t seem like a salesperson.
As though a salesperson is an evil creature to be avoided at all costs. Because you know what a salesperson will do, right? They will sell you something you don’t want. Which is a real fear of many people when dealing with agents. People worry that a salesperson will take advantage of them. So they search for an un-salesperson, what we call authentic Realtors.
Grounded is another term I’ve heard tossed about. But that’s just trendy. Besides, if you’ve been following the massive 7.5 earthquake in Indonesia, you will learn about liquefaction. This is when the ground turns into soft mud after an earthquake and swallows up people. In Petobo, in the Palu area, when the soil turned into mud, it caused houses to change direction, slide miles away and many sunk below the mud, with only the roof tops poking out of the ground. There is no such thing as grounded. It’s simply a perception.
But authentic Realtors are a reality. These are people who don’t read scripts because they don’t need it. They’ve been around the block enough times to know what to say to people and how to say it, which is with kindness and respect. So many agents I know are afraid to counter a client’s belief or statement. Because they are trying way too hard to be “friends.” They don’t want to make an enemy or cause bad feelings, so the bad news doesn’t reach their clients. The bad news is whatever they think the clients should know but are afraid to disclose.
Give it to a person straight and then offer solutions, that’s my method of operation. Yet some Sacramento Realtors will say: well, it sucks to be you and walk out. Which is what an agent is doing when they know a client is thinking the wrong things and, by extension, doesn’t possess enough information to choose the right moves. When that agent could deliver the information the client needs, but she doesn’t.
Authentic Realtors share information freely. Real agents aren’t worried about competition or how other people will view them. They are not self conscious; but they are self aware. Delivering the truth about a situation is not always easy, but it is necessary. If the client still rejects the notion after that, well, at least her Realtor extended the effort.
How I Finally Quit Smoking When Nothing Else Worked
Instead of talking about Sacramento real estate today, I would like to share with you how I finally quit smoking when nothing else worked. People who know me today are often astonished to learn that I once smoked cigarettes. They do not know I was addicted to smoking for 45 years. Had gone through many attempts to quit, and nothing ever stuck. I always broke down and lit up.
Sometimes, the time between not smoking and smoking was a few weeks; other times a few months. But I always wanted a cigarette. And let’s just say I struggle with saying no to my desires.
How I Got Started Smoking Cigarettes
Diane, my best friend in eighth grade, handed me a cigarette at age 13. We wanted to be “cool kids.” I practiced smoking in the mirror, inhaling smoke up my nose. Blowing smoke rings. Both of my parents at that time smoked brands without filters, like Lucky Strikes.
Only in desperation would I snatch a few cigarettes from them. Instead, it made more sense to swipe a handful of coins off my mother’s dresser to buy my own. Not one of my proudest memories.
Almost everybody I hung out with smoked Old Gold or Marlboros. It was only in my later years that I chose Parliaments as my cigarette of choice. That was a more glamorous brand because your lips barely touch the filter.
Crazy Ways I Previously Tried to Quit Smoking
Along the way I tried Nicotine patches but that wasn’t enough. I tried hypnosis, which did not work on me. Went through Chinese acupuncture with needles stuck in my stomach and head. Lasted without a cigarette for maybe 24 hours. As a last resort, I signed up at a seminar to have drugs shot into a vein in my neck. Don’t even recall what that process was called but it also did not work.
At one point, I even tried a prescription for Chantix, a powerful anti-depressant drug, which produced nightmares and made me sick to my stomach.
Visit to U. C. Davis Med Center for Lung Testing Changed My Life
During late spring of 2010, my doctor suggested I go to U. C. Davis Medical Center for lung capacity testing. Just to determine how damaged my lungs were, not necessarily to quit smoking when nothing else worked. I met with a nurse named Adam, and I remember his name because that’s my husband’s name. He was extremely patient, kind, informative and understanding, very non-judgmental.
Part of the tests involved blowing into tubes and trying to extract every last breath. It was a long process, at least half a day at U. C. Davis Medical Center. Adam also made me laugh.
Then he spent a long time explaining to me the results of the tests. Didn’t this guy have some place to be?? Almost no doctors or nurses have spent a lot of time explaining test results to me or answering questions because everybody needs to adhere to a demanding schedule. But Adam took the time. He explained I once had millions of alveoli in my body, which are tiny air sacs at the end of tiny branches of air tubes in the lungs. Upon inhaling, the alveoli allow oxygen to enter the bloodstream and alveoli also expel carbon dioxide upon exhaling.
Simply put, smoking a cigarette kills alveoli.
Adam said my tests showed if I continued to smoke, my alveoli will continue to die. How long can I continue to smoke before it reaches the danger zone, I asked. I mean, if I had another 10 years, hallelujah, I’d keep smoking. Rats. Adam didn’t say anything. He just smiled and said we all have to make our own decisions.
The First Step to Quit Smoking
I don’t recall if it was that night or a few nights later, but I do know what happened shortly thereafter when I went out on my back deck to smoke a cigarette. Lit up, inhaled. Stood there with a cigarette between fingers, watching smoke curl into the air. Out loud I said to nobody but myself: Why am I killing my alveoli? Why am I harming myself? I have the power to stop. Yet, I am smoking.
My one-sided conversation ended by pronouncing out loud this has got to stop. Yes, I really do need to make myself a priority and start taking better care of my health.
That was the main secret to finally quit smoking when nothing else worked but there is a lot more to this story. Yes, first you need to really commit and be dedicated to stopping. The other times I tried to quit, I wasn’t quite so motivated. So, maybe it would help you, dear reader, to have tests done at U. C. Davis Medical Center; although, I hear Adam has retired.
His positive attitude and wealth of information was really instrumental for me.
Next, I needed help. Motivation and commitment alone was not enough. I had failed so many other times. It has been more than 8 years since I finally quit smoking when nothing else worked. I’d say it has worked this time. Urges to smoke today do not exist.
How My 6-Month Program to Quit Smoking Worked
My method to finally quit smoking when nothing else worked involved combining programs, increasing the time frame, and lowering the dosage of drugs. All of my previous programs to quit smoking lasted a month or two at best. Decided that to permanently stop smoking, I needed to change my behavior over a much longer period of time.
Figured I would need 6 months.
I made an appointment with my doctor to discuss a new prescription for Chantix. The dosage for a 300-pound man was the same as prescribed for a 100-pound woman. That didn’t seem right to me. My doctor said it was all right to reduce the dosage, especially since I was shooting for a 6-month time period to stop smoking.
Besides, they would not give me more pills. Their guidelines suggested a shorter period of time.
Then I bought out the patches inventory from Walgreens over on Broadway by picking up enough boxes of the nicotine patches to last for 6 months. The maker of the patches recommends two weeks on the 21 MG, then two weeks on 14 MG. Followed by the last 2 weeks of 7 MG. Well, six weeks is not enough in my book. Nope, no way to cure a 45-year addiction within 6 weeks.
My preferred method, which I created to quit smoking:
- Two months on the 21 MG + low dose Chantix
- Two months on the 14 MG + low dose Chantix
- Two months on the 7 MG + low dose Chantix
While that might seem excessive to you, it worked for me. To ensure my success, I also cut up all of my Chantix pills into a quantity to last me for a period of time of 180 days. Probably cut the dosage into quarters. Did not experience any further nightmares or any time of adverse reaction to the medication.
By combining the two medications, it worked. Easy as could be. It worked on Day One all the way through Day 180. By the end of six months, I no longer had a desire to smoke. There were no withdrawal symptoms, none that I noticed, anyway. No pain. No regret. No failure.
The Nicotine Patches and Chantix combination over that 6-month period was enough for me to finally quit smoking when nothing else worked. Maybe this method, adjusting for your body weight and temperament, would work for you, too. Of course, check with your doctor.
Why Failure is a Welcome Opportunity
Just don’t give up. Something that has power over a person for 45 years can be stopped. People are all so wound up about failure — in life, in relationships, in business — yet few of us do anything perfectly the first time we try. You might find this hard to believe, but I paid 5 times in the 1970s to take my California real estate exam. Yes, I failed the test 4 times. Because I did not study.
Yup, I was ignorant and young enough to believe my years in title and escrow naturally prepared me for the California real estate exam. Which is why I sat for that exam 5 times. The last time, I studied. So, naturally, I passed. Point is: I did not give up.
Talking about failing, I’ve also been married 5 times. How many women do you know who have had 5 husbands, besides maybe a handful of celebrities? Actually, I don’t think anybody should get married before age 35. That’s just too young. You change too much over the years.
But I could have sworn off marriage all together after divorcing number 4. Until I met my present husband, and we’ve been together now 22 years, married for 19 years. Because I did not give up.
Failures simply put you one step closer to your goal of success.
Free Lung Screening Program at U. C. Davis
My doctor recently enrolled me in a special free program for lung cancer screening at U. C. Davis. It is for former smokers and present smokers. Once a year, candidates receive a free lung X-ray. And guess what? These 66-year-old lungs are in good shape. No evidence of cancer and not a lot of scarring. You need to be between the ages of 55 and 80. Smoked at least a pack a day for 30 years. Further, if a former smoker, to have quit within the past 15 years.
Although my qualifications put me at risk for lung cancer, the doctors say I’m at the extreme other end of patients they see.
That’s good news.
I stopped smoking on June 14, 2010. Flag Day. Also, it was the birthday of a friend who died from lung cancer. As of October 10, 2018, still smoke free. Honestly, I would not smoke again even if I knew I were dying tomorrow.
In conclusion, if I can do this, so can you. It starts with accepting responsibility by taking charge of your health. I hope the story of my journey will help you and those important to you.
Sacramento Housing Trends for September 2018: Twice the Homes
The biggest news to hit our Sacramento housing trends for September 2018 is increased inventory. Our inventory doubled this year. This is welcome news for home buyers, including sellers who plan to move up. For all practical purposes, our market inventory is still low enough to qualify for a seller’s market, even if the market is no longer fully cooperating with that notion. That’s because there are too many opposing forces to make our real estate market in Sacramento a true seller’s market.
Generally, in a true seller’s market, we have the following character attributes:
- Single-digit days on market
- Over list price offers
- Multiple offers
- No seller repairs or credits
- Few price reductions
- Rising prices
Except for highly desirable properties or under-market pricing, those characteristics are not really inherent in our present day Sacramento housing trends for September 2018. Our market is fairly stable and moving toward a buyer’s market.
Surprisingly, here are the characteristics inherent in our present Sacramento real estate market:
- Longer days on market
- Under list price offers
- Single purchase offers
- Seller credits and repairs
- Many price reductions
- Stable prices
However, it doesn’t mean the sky is falling or that the market is collapsing. Just means fewer closed sales, fewer pendings. For example, when I looked at my listing inventory, I have only one pending sale for this month. That is low for me. So I checked out the pending sales for a few other top producers, and we’re all pretty much the same. Some top producers show zero pending sales. It’s unusual for me to enjoy any breathing room.
In our present Sacramento housing trends for September 2018, we’ve got sellers clamoring for information. Everybody wants to know what they can do differently to quickly move a property and few, really, want to lower their prices where they may need to be. Our median sales price in Sacramento County is $360,000, identical to last June. In contrast, our inventory has doubled from January of this year.
What does this mean? It means it’s an excellent time to buy a home in Sacramento. High inventory means more choices. More choices means better chances to negotiate benefits such as repairs or closing cost credits. Not to mention, buying this year means lower interest rates. Next year, buyers will pay more for financing. Call your Sacramento Realtor Elizabeth Weintraub at 916.233.6759 and put 40 years of experience to work for you.