October 2022

www.thelompocvision.com The Lompoc Vision “Good News You Can Use.” 9 Nine of our employees feted marked 20 years of service: Amparo Aguilar, Angela Villagomez, Chad Signorelli, An- gelica Ramos, Ericson Cruz, Diane Drewes, Lori Jantz, Maribel Arteaga and Susan Davis. Jody Curts stood alone for the quarter century, or 25 year, achievement. Recognized with great celebration for 30 years of service to the hospital district were Rolanda Cordero and Rosa Por- tillo. We thank all of them for their hard work, dedication and service to the community. Community lecture: If you are interested in learning more about colon cancer and colon cancer screening, please at- tend our Lompoc Hospital District Foundation Community Lecture on Oct. 19. Dr. Rahim Raoufi will be the speaker that evening, starting at 6 p.m. in the Ocean’s Seven Café at the hospital. Please join us! Get boosted: Our weekly vaccination clinic now offers the new Covid-19 bivalent booster intended to provide more protection against the Omicron variant. Vaccinations are given from 3 to 6 p.m. on Fridays at the hospital. Walk-ins are accepted, but appointments are preferred. Visit myturn. ca.gov to find an appointment. Lots of happenings at LVMC (continued from page 8) R i s i n g interest rates are up again, sit- ting at 6.29% as this is writ- ten, and up from 3.25% just a year ago. And higher rates don't just affect the abil - ity of today's buyers to make that new home a reality - they're hurting the sellers, too. The most obvious is a reduction in eligible buyers which equates to a longer time on the market and with that, the possibility of having to reduce one's listing price to get it sold. The other is the realization that by leaving one's cur- rent home with its low interest rate, sellers transition to be- coming buyers who likewise find themselves facing much higher rates. That means that for some sellers who don't need to sell right now, they are just aren't. For them, it may make more sense to sit and wait for a change in administra- tions and policies. So while inventory is meaningfully up from this time last year (there are over 50 ACTIVE single-family homes now on the market) we're also seeing the buying pool mean- ingfully lowered. This has shifted the position of power to buyers. For example, a year ago some buyers did not hesi- tate to write an offer "sight unseen." They rarely asked for repairs that weren't significant and often overlooked out - dated kitchens, baths or landscaping ills. With inflation at 4% and higher, even those who flunked high school math understood it was like getting an interest-free mortgage loan. Now we're seeing much more discriminating buyers - they take note of popcorn ceilings, older kitchen cabinets and 20-year old roofs. They want to negotiate the price and still come in with a list of upgrades or repairs. Sellers are understandably in a state of shock, realizing they missed the prime time for selling by just months. And even though the Feds warned of oncoming interest rate hikes, the industry was not prepared for the whopping increases 2022 has thus far experienced. Last year, when announcements were made by all the experts, we were told to prepare for three or four quarter-point increases made incrementally. The jaw-dropping change in policy for a much more aggressive approach came about because those in power believe that by slowing down the runaway housing train they could tame the country's overall infla - tion problems. With elections coming in just weeks, the last thing the Democrats want is to have an economy of- ficially labeled as a recession. Of course, raising the rates does slow down the housing market but it's only one part of the economy. The administration's propensity for printing unlimited amounts of greenbacks for whatever cause the White House chooses directly impacts the economy more, and above all, the average working American. It devalues whatever income that person makes because the paycheck HOW INTEREST RATES ARE IMPACTING THE HOUSING MARKET by Connie Barlow simply isn't keeping up while prices on everything continue to rise. Simply said, a dollar isn't worth a dollar anymore and its value continues to diminish every week. (Tooth fairy, take note). Even Biden's supporters are raising eye- brows at how "easy money" is flowing out of the coffers. Former Senator Everett Dirksen was once quoted as say- ing, "A billion here, a billion there and pretty soon you're talking about real money." And speaking of how these rates have impacted the in- dustry, lenders whose primary livelihood counted on a lu- crative refinance market are probably out looking for part time work elsewhere. The old-timers will boast they've been down this road before and can weather the storm again. But to help things along they're also resurrecting old programs that made it easier in the days of 8% and 9% rates - for example, the 2-1 buydown comes to mind. Say the interest rate is a fixed 6%. In this program, the buyer must qualify for 6% but it may mean no more eating out, selling the beloved pickup, skipping charitable donations and looking for clothes on sale at Costco. So to make things a little easier, the rate is lowered to 4% the first year. The second year it increases to a manageable 5%. Year three presumes the buyer is now making more money and the loan terms escalate to 6%, remaining at 6% for the life of the loan. Who wouldn't want that? Well, it comes with a stiff fee and it's not unusual for lenders to suggest that sellers contribute. Another popular program in a market where interest rates are rising quickly is to sign up for a "lock and shop." This allows a buyer to lock in a rate for a given time period even before getting an offer accepted. Finally, you can also expect state and county/city programs to become popular as they offer to assist a buyer in the downpayment requirements, some be- ing outright grants. Advice to buyers: If you are actively looking for a home and don't want to rent (that's another column), negotiating price and terms have returned. Be sure to work with an agent and lender who are knowledgeable about programs. To sellers: Be prepared to be flexible, make sure your home looks and smells great and fix anything that needs fixing. After all, it's always the right time to buy or sell for some- one. Questions or comments may be directed to Connie Bar- low, CA license 01164405 at Keller Williams Realty: 805- 757-8521 or email at ConnieandChuck@kw.com