September 2022

As the Federal Reserve continues to battle inflation, they have made it clear that they will keep raising interest rates even at the expense of tipping the country into a recession. Higher mortgage rates are near 7% with some people thinking it could hit 8% by the end of the year. The average sale price in September 2022 for a single family home in Alameda was $1,426,000. When rates were lower six months ago around 3.5% the monthly mortgage, interest, tax and insurance cost with a 20% down payment was $6,408 per month. Rates are now around 7% which increases the monthly payment to $8,831 per month. Today's average buyer has to pay $2,423 MORE per month than they did six months ago due to rising mortgage rates. This increase has dampened the number of sales and made many buyers take a pause from home shopping while home sale prices continue to rise due to a lack of inventory.