The Tahoe real estate market is unique. Not only does it perform differently from the national average, but also within the Tahoe market different neighborhoods sometimes vary dramatically. Even though South Lake Tahoe and Incline Village share Lake Tahoe’s shores, their Real Estate markets are not the same.
Differences notwithstanding, the 2017 winter storms have given all the Tahoe markets a boost. Instead of dreary news about low lake levels, we’ve all been treated to more optimistic reports of unusually deep snowpack, and the easing of the drought. All of us living around Lake Tahoe expect to see more visitors this summer.
However, will raising interest rates offset the good news about the Sierra’s winter weather? There have been changes in the first three months of 2017. Interest rates have increased and are now at over 4% for 30-year-fixed-rate mortgages. That along with the tightening of the Federal Reserve’s monetary policy in the last month of 2016 might affect the real estate market.
There are a few things to be aware of as you plan your real estate ventures in 2017. If the stock market continues to rally, mortgage rates will go up. Pay attention to news from Fannie Mae or Freddie Mac as their guidelines may loosen to offset higher interest rates.
It’s unlikely that mortgage rates will decrease. It would take something big happening in the stock market to disturb the current trend. Although if that did happen, be prepared to act on it.