Monday, April 16, 2012
Market Snapshot
March employment report shocked markets with its weakness. Non-farm jobs were widely expected to have increased 201K, as reported up just 120K; non-farm private jobs were expected up 224K, as reported +121K. The unemployment rates declined to 8.2% frm 8.3% suggesting more people are not looking for jobs. On Wednesday ADP said private jobs increased 209K. The bond and mortgage markets rallying hard this morning, at 9:00 the 10 yr note yield at 2.08% down 10 basis points frm yesterday’s close and mortgage prices +16/32 (.50 bp). Employment data has always been difficult to forecast, usually there is a burst of volatility on the data, today is one major example. If the stock market were trading today the DJIA would open down 150 points based on trading in the futures markets. The Feb jobs originally reported +227K was revised to 240K; Jan jobs originally reported +284K revised to 275K. A smaller than forecast addition of 120,000 jobs last month broke a pattern that was giving U.S. voters a growing sense of security.
Tuesday, March 13, 2012
"What up" for the near future!
The near term outlook for US interest rates is flat; the bond and mortgage markets have for months been in a narrow range. There is little likelihood that rates will change much until there are new fundamentals and we don’t see where that would come from. That said, given the unsettled mid-east and in Europe as it heads into another recession shocks and surprises are not out of the equation.
Thursday, March 1, 2012
Home Loan Underwater?
Changes to Underwater Refinance Plan Going Into Effect
See If You Can Benefit
On October 24, 2011, President Obama announced plans to open up refinancing to more homeowners who are underwater. This proposal was a revision to the previous Home Affordable Refinance Program (HARP) and is now known as HARP 2.0.
Some of the major changes under HARP 2.0 include:
No underwater limits: Previously, borrowers whose loan-to-value limits were greater than 125 percent were ineligible to refinance. Now, borrowers can refinance no matter how far their homes have fallen in value.
Appraisals may be eliminated and underwriting relaxed for most borrowers: Being able to use this program may save time and money, and remove some of the anxiety from the refinancing process.
Deadline extended: Borrowers now have until December 31, 2013 to get refinanced under HARP 2.0.
These changes will be put into effect by Fannie Mae and Freddie Mac the week of March 19, 2012.
It's also important to note that the HARP 2.0 Program is for loans that were secured by Fannie Mae and Freddie Mac prior to June 1, 2009. Currently, loans obtained after this date are not eligible for this program. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:
www.freddiemac.com/mymortgage
www.fanniemae.com/loanlookup/
See If You Can Benefit
On October 24, 2011, President Obama announced plans to open up refinancing to more homeowners who are underwater. This proposal was a revision to the previous Home Affordable Refinance Program (HARP) and is now known as HARP 2.0.
Some of the major changes under HARP 2.0 include:
No underwater limits: Previously, borrowers whose loan-to-value limits were greater than 125 percent were ineligible to refinance. Now, borrowers can refinance no matter how far their homes have fallen in value.
Appraisals may be eliminated and underwriting relaxed for most borrowers: Being able to use this program may save time and money, and remove some of the anxiety from the refinancing process.
Deadline extended: Borrowers now have until December 31, 2013 to get refinanced under HARP 2.0.
These changes will be put into effect by Fannie Mae and Freddie Mac the week of March 19, 2012.
It's also important to note that the HARP 2.0 Program is for loans that were secured by Fannie Mae and Freddie Mac prior to June 1, 2009. Currently, loans obtained after this date are not eligible for this program. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:
www.freddiemac.com/mymortgage
www.fanniemae.com/loanlookup/
Monday, January 30, 2012
Market Update for Jan 30, 2012
Monday, January 30, 2012
The rally in the bond and mortgage markets is continuing this morning, Europe stock markets weaker and US equity markets set to open lower at 9:30. Dec personal income and spending at 8:30 was in line with estimates; income up 0.5% against estimates of +0.4%. Dec spending unchanged against estimates of +0.1%; more evidence that holiday shopping didn’t meet those early lofty estimates. Spending stalled in December as Americans used a jump in incomes to restore depleted savings, indicating the biggest part of the economy will not be a driver of the expansion.
Last week Greek officials were “confident” that they could make a deal with creditors to fend off another debt default cliff. Nothing happened, not necessarily a surprise as we have been subjected to the continual uncertainty and lack of progress for two+ years now. Greece signaled opposition to economic oversight in exchange for aid, taking Italian interest rates higher this morning and driving equity markets lower. European Union leaders gather in Brussels today for their first summit of 2012 to put the finishing touches on a German-led deficit-control treaty and endorse a 500 billion-euro ($661 billion) rescue fund to be set up this year. Greece and its private creditors said Saturday they expect to complete a deal in coming days after bondholders signaled they would accept a bigger cut in their debt holdings----it never ends.
The DJIA opened -100; 10 yr note +17/32 1.83% -7 bp and MBS 30 yr prices +6/32 (.18 bp).
This week’s elephant is the Jan employment report on Friday; current estimates are an increase of 160K non-farm jobs and private non-farm jobs +170K, the unemployment rate at 8.5%. The actual unemployment rate is closer to 16% however, that the “official” rate is at 8.5% is evidence that many have simply dropped out of looking for jobs. Until the Fed revised estimates for growth downward for 2012 and 2013 last week and Q4 GDP advance report was weaker than forecasts (+2.8% against +3.1% expected) there was an increasing belief the economy was gaining a little momentum. Now economic bulls are re-thinking that idea.
The bellwether 10 yr note is working on a key resistance level at 1.80% this morning. In early trade it dropped to 1.82% and at 10:00 sitting at 1.83%. The MBSs are pushing into new highs in prices not seen in over a year. The Fed’s decision to leave the FF rate at 0.0% for the next three years and with no inflation now or on the horizon, the long end of the curve is seeing buying as investors seek yield. The safety trade over Europe’s debt crisis has ebbed recently but still plays a role in the decline in rates.
The rally in the bond and mortgage markets is continuing this morning, Europe stock markets weaker and US equity markets set to open lower at 9:30. Dec personal income and spending at 8:30 was in line with estimates; income up 0.5% against estimates of +0.4%. Dec spending unchanged against estimates of +0.1%; more evidence that holiday shopping didn’t meet those early lofty estimates. Spending stalled in December as Americans used a jump in incomes to restore depleted savings, indicating the biggest part of the economy will not be a driver of the expansion.
Last week Greek officials were “confident” that they could make a deal with creditors to fend off another debt default cliff. Nothing happened, not necessarily a surprise as we have been subjected to the continual uncertainty and lack of progress for two+ years now. Greece signaled opposition to economic oversight in exchange for aid, taking Italian interest rates higher this morning and driving equity markets lower. European Union leaders gather in Brussels today for their first summit of 2012 to put the finishing touches on a German-led deficit-control treaty and endorse a 500 billion-euro ($661 billion) rescue fund to be set up this year. Greece and its private creditors said Saturday they expect to complete a deal in coming days after bondholders signaled they would accept a bigger cut in their debt holdings----it never ends.
The DJIA opened -100; 10 yr note +17/32 1.83% -7 bp and MBS 30 yr prices +6/32 (.18 bp).
This week’s elephant is the Jan employment report on Friday; current estimates are an increase of 160K non-farm jobs and private non-farm jobs +170K, the unemployment rate at 8.5%. The actual unemployment rate is closer to 16% however, that the “official” rate is at 8.5% is evidence that many have simply dropped out of looking for jobs. Until the Fed revised estimates for growth downward for 2012 and 2013 last week and Q4 GDP advance report was weaker than forecasts (+2.8% against +3.1% expected) there was an increasing belief the economy was gaining a little momentum. Now economic bulls are re-thinking that idea.
The bellwether 10 yr note is working on a key resistance level at 1.80% this morning. In early trade it dropped to 1.82% and at 10:00 sitting at 1.83%. The MBSs are pushing into new highs in prices not seen in over a year. The Fed’s decision to leave the FF rate at 0.0% for the next three years and with no inflation now or on the horizon, the long end of the curve is seeing buying as investors seek yield. The safety trade over Europe’s debt crisis has ebbed recently but still plays a role in the decline in rates.
Saturday, January 28, 2012
2012 Apartment Forecast
.
For apartment owners and investors, a strong recovery in the property sector overshadowed disappointing economic performance
in 2011. The common perception that apartment renter demand is defying economic fundamentals is understandable
but only partially true. Favorable demographics among prime renters, the release of pent-up demand as young adults debundle
from family and roommates and increased renter demand due to falling homeownership certainly drove more renters
to apartment communities last year. At the same time, young adults captured a majority of the 1.8 million private-sector jobs
created over the past year, which emphasizes the importance of underlying economic performance as a major driver of rental
demand. This becomes more important in 2012 and beyond as the white-hot levels of post-recession net absorption cools off
to healthy but less-spectacular levels. Simply stated, we still need jobs to drive long-term demand. On that front, investors
should take comfort in the better-than-expected economic readings that streamed in month after month following the U.S.
debt downgrade in August of last year. Improvements in retail sales, private sector jobs and manufacturing point to a much
stronger economic footing than expected by most economists despite heightened macro concerns—namely the European
debt crisis and the U.S. political paralysis. It is unlikely that the macro clouds will measurably dissipate in 2012, but economic
momentum points to moderately better performance this year, certainly enough to support the apartment expansion cycle
now in full swing.
Developers are getting busy, as are lenders and equity investors, and after the brief pause in late 2011, we should see
more projects started, steadily boosting additions to supply over the next three years. For the time being, demand will outstrip
supply additions by a wide margin, leading to lower vacancy across virtually all markets and the first year of broadening rent
growth. Beyond 2012, caution in metro and submarket selection will be much higher as new supply ramps up
in 2011. The common perception that apartment renter demand is defying economic fundamentals is understandable
but only partially true. Favorable demographics among prime renters, the release of pent-up demand as young adults debundle
from family and roommates and increased renter demand due to falling homeownership certainly drove more renters
to apartment communities last year. At the same time, young adults captured a majority of the 1.8 million private-sector jobs
created over the past year, which emphasizes the importance of underlying economic performance as a major driver of rental
demand. This becomes more important in 2012 and beyond as the white-hot levels of post-recession net absorption cools off
to healthy but less-spectacular levels. Simply stated, we still need jobs to drive long-term demand. On that front, investors
should take comfort in the better-than-expected economic readings that streamed in month after month following the U.S.
debt downgrade in August of last year. Improvements in retail sales, private sector jobs and manufacturing point to a much
stronger economic footing than expected by most economists despite heightened macro concerns—namely the European
debt crisis and the U.S. political paralysis. It is unlikely that the macro clouds will measurably dissipate in 2012, but economic
momentum points to moderately better performance this year, certainly enough to support the apartment expansion cycle
now in full swing.
Developers are getting busy, as are lenders and equity investors, and after the brief pause in late 2011, we should see
more projects started, steadily boosting additions to supply over the next three years. For the time being, demand will outstrip
supply additions by a wide margin, leading to lower vacancy across virtually all markets and the first year of broadening rent
growth. Beyond 2012, caution in metro and submarket selection will be much higher as new supply ramps up
Monday, October 24, 2011
Oct/Nov 2011 Outlook.
■Increased caution among prospective homebuyers, together with steep financing hurdles, will continue to slow home sales, a trend that will strengthen apartment operations. In addition, the apartment sector is benefiting from tight supply conditions; stock additions over the first two quarters of 2011 marked one of the lowest 6-month totals on record. As a result, U.S. apartment vacancy retreated below the 10-year annual average of 5.9 percent in the second quarter. Although more projects are starting to move forward, the supply/demand balance will remain favorable, with vacancy to close 2011 at 5.6 percent.
Wednesday, October 12, 2011
Latest Rates for So Ca Real Estate
The stock market continues on a rally which is taking investors away from the bond market causing our rates to increase. They are still very low but up from a couple of weeks ago.
Conforming 30 Year Fixed (up to $417,000) is at 3.99% at 1 Point and 4.25% at Zero, High Balance ($417,000 to $625,500) is at 4.25% at one point and 4.5% at zero and Jumbo (over $625,500) is at 4.875% at 1 Point. FHA is at 3.75% at no points up to $417,000 and 4% for the High Balance.
Conforming 30 Year Fixed (up to $417,000) is at 3.99% at 1 Point and 4.25% at Zero, High Balance ($417,000 to $625,500) is at 4.25% at one point and 4.5% at zero and Jumbo (over $625,500) is at 4.875% at 1 Point. FHA is at 3.75% at no points up to $417,000 and 4% for the High Balance.
Sunday, September 25, 2011
New 2011 Loan Rates Sept.
The Fed's latest assessment of the economy spooked investors. Though the central bank has been warning of slower growth for months, its signal of "significant downside risks to the economic outlook, including strains in global financial markets" added to the pessimistic forecast. The stock market plunged.
The Fed however surprised markets with the announcement it would turn back to buying Mortgage Backed Securities with principle pay downs on MBSs it holds and instead of investing back into treasuries as it had been doing, investing in more Mortgage Backed Securities. This caused rates to dip even further.
Conforming 30 Year Fixed (up to $417,000) is at 3.75% at zero points, High Balance ($417,000 to $625,500) is at 3.875% at zero points and Jumbo (over $625,500) is at 4.5%. Other programs are attached.
Check out our Jumbo rates. They cannot be beat.
30 Year Fixed - 4.5%
10 Year Fixed - 4.125%
7 Year Fixed - 3.875
5 Year Fixed - 3.5%
All with 25% down and one point. (20% down allowed in some zip codes but rates will be higher)
The Fed however surprised markets with the announcement it would turn back to buying Mortgage Backed Securities with principle pay downs on MBSs it holds and instead of investing back into treasuries as it had been doing, investing in more Mortgage Backed Securities. This caused rates to dip even further.
Conforming 30 Year Fixed (up to $417,000) is at 3.75% at zero points, High Balance ($417,000 to $625,500) is at 3.875% at zero points and Jumbo (over $625,500) is at 4.5%. Other programs are attached.
Check out our Jumbo rates. They cannot be beat.
30 Year Fixed - 4.5%
10 Year Fixed - 4.125%
7 Year Fixed - 3.875
5 Year Fixed - 3.5%
All with 25% down and one point. (20% down allowed in some zip codes but rates will be higher)
Saturday, July 9, 2011
Dismal Numbers!
Friday, July 08, 2011
Stunned!! The only way to describe what we saw at 8:30 when the BLS employment report was released, mouths dropped, words were hard to come by with one of the weakest monthly employment reports in over a year. Non-farm jobs, expected up 100K were up just 18K; private sector jobs expected up 125K, up just 57K. It wasn't just June data; May non-farm jobs were revised frm +54K to +29K and April jobs lower by 4K frm what what was originally released. The jobs were the weakest since Sept 2010. The unemployment rate, expected unchanged at 9.1%, increased to 9.2%, the highest since Dec 2010. Average hourly earnings -0.1%, normally up 0.2% a month. No matter how the report is spun when Pres Obama speaks at 10:35; this is a very serious blow to the view that the economy is improving and has turned markets upside down.
Prior to the release of employment the 10 yr note yield was up to 3.18% +4 bp frm yesterday's close; mortgage prices -7/32 (.22 bp) frm yesterday's close. At 9:00 the 10 yr note rate was down to 3.03% -11 bp frm yesterday's close and mortgage prices +18/32 (.56 bp). Stock indexes were better prior to 8:30, at 9:00 the DJIA -132, down 155 points from pre employment.
At 9:30 the DJIA opened -100, the 10 yr note 3.05% -9 bp and mortgage prices -16/32 (.50 bp). Crude oil -$1.60, gold up $12.50.
Until the report this morning the rate markets were decidedly bearish and equity markets were looking for the economy to rebound. Our outlook was for rates to edge a little higher with the 10 yr note likely to climb to 3.25% before the selling would abate. With this report that forecast is dashed, at least in the near term. Employment reports are always market movers as is the case today, however the data for June has really rattled markets more so than usual. Markets are going to take more than a day or two to wrestle with the deeper meaning for the economic outlook and whether we are headed into a double dip recession. While that is an extreme view, nevertheless May and June job growth (+47K in 2 months) won't be dismissed and forecasts of growth will likely be revised lower.
The bond and mortgage market outlook, bearish until 8:30, have shaken off all of the optimistic economic estimates. What was is no longer. Without job growth the economy cannot grow, stocks are going to be weak today and early next week. The 10 yr note will test 3.00% today and Monday. While the data today shocked everyone, it will take sometime to sift out the longer term meaning. Look for some to argue that May and June were just big bumps in the road to recovery and stronger growth; the bullish views on the economy won't die easily. Market volatility will likely remain at very high levels.
Although the employment situation as reported has caused many to re-consider their outlook for economic growth, what the Fed might do, what Congress might do, and where interest rates will trade now; the resolution will take time. We still believe the 10 yr note will have difficulty holding under 3.00% as we noted previously. Next week Treasury will auction a total of $66B, the first auctions since the end of QE 2, $21B of the total of 10 yr notes. Two weeks ago Treasury auctions met with weaker demand than had been the case for over a year. How the auctions go will be major test.
Thursday, July 7, 2011
Mid July 2011 Rates
Rates continue to bounce around slightly as economic news comes in. Last weeks stock market rally, the deal worked out to keep Greece afloat and the end of Quanititave Easing (QE 2) had rates going up. They eased a bit early this week with the debt ceiling debates seem to be making progress and no government shutdown expected. Rates were up slightly this morning with an increase in ADP non-farm jobs. All eyes are on the official June employment data due to be released tomorrow (Friday).
Conforming 30 Year Fixed (up to $417,000) is at 4.375%, High Balance ($417,000 to $729,750) is at 4.625% and Jumbo (over $729,750) is at 5.25%. Other programs are attached.
The loan limits are set to expire 09/30/2011. There has been no announcement regarding changes after this date but tell your buyers to beware if they are in the higher end of the conforming limit ($650,000 to $729,750).
Conforming 30 Year Fixed (up to $417,000) is at 4.375%, High Balance ($417,000 to $729,750) is at 4.625% and Jumbo (over $729,750) is at 5.25%. Other programs are attached.
The loan limits are set to expire 09/30/2011. There has been no announcement regarding changes after this date but tell your buyers to beware if they are in the higher end of the conforming limit ($650,000 to $729,750).
Thursday, June 30, 2011
Take Advantage of This Program!
I wanted to let everyone know that Fannie Mae has extended the 3.5% in closing cost assistance until October 31, 2011 for the HomePath properties. They are also paying $1,200 to the buyer’s agent as a bonus.
Remember that any buyer purchasing a HomePath property can put as little as 3% down and there is no appraisal needed and no Monthly Mortgage Insurance which saves the borrower around $265 per month on a sales price of $300,000.
You can view the listed HomePath properties on Fannie Mae’s website at www.homepath.com
Friday, June 24, 2011
June Home Forecast 2011
At 8:30 May durable goods orders were better than thought, up 1.9% and ex transportation up 0.6%. April durables were revised better, overall from -3.6% to -2.7% and ex transportation from -1.6% to -0.4%. Q1 GDP final report improved from +1.8% in the preliminary report last month to +1.9%. It is old news and the fractional increase is relatively meaningless to traders.
Most of the talk this morning is still over the IEA and Obama Administrations decision to take oil from the strategic reserve to supposedly drive down the price of oil thus gasoline. Both oil and Gasoline had already fallen in the past two weeks, gasoline down about 20% from recent highs and crude oil down about $10.00 frm recent highs. Was it just a political move by Obama, or was it necessary? I'll leave the answer to those that are more familiar with the details in the global oil markets. 60 mil barrels accounts from anywhere between 16 hours and 8 hours of oil usage globally, we hear both stats being bantered around. Politically Republicans saying tapping the reserve at this point was unnecessary and set a bad precedent; Democrats saying it is necessary for improving economic recovery. The other view being talked about, showing OPEC they can't get away with not increasing output as it did a week ago.
As far as helping economic recovery with 60 mil more oil over the next 30 days seems a little too optimistic. The world will get 2 mil barrels a day for 30 days, then what? If the global economy were to immediately re-start growth the price of oil and gasoline will climb right back up. The only way to get oil lower and keep it low is for oil producers to open the taps and increase output dramatically and that isn't on the table now, and likely will never be there.
Yesterday afternoon reports hit that the EU and IMF had agreed on a bail-out package for Greece; the news hit at 3:00 with the DJIA down 180 points, at the end of the session an hour later the DJIA closed down 59 points. The news was welcome but at the moment there still is no lock on the plan. Greece’s next hurdle is to shepherd 78 billion euros ($111B) of austerity measures through parliament, after yesterday’s endorsement of the program by from the European Commission, the European Central Bank and the International Monetary Fund. “We have agreed that there will be a new program for Greece,” German Chancellor Angela Merkel told reporters at an EU summit in Brussels today. “This is an important decision that says once again we will do everything to stabilize the euro overall.”
In Washington, the land of Oz, the work on the budget and debt increase continues. Work of course is a relative term, in this case the work is about who gets re-elected. That is what we have in Washington, people sent there to work on their re-election campaigns. Stupid is as stupid does according to Forrest Gump, he must have spent time in the city. Republicans walked away from discussions yesterday, a show of adolescent behavior; Democrats equally childish, unwilling to accept cuts in most programs unless they get tax increases. The saga will go on and on until the final hour on August 1st, then it will not be a meaningful measure as our leadership continues to kick the can down the road as they have done for the last three years with no budget. Let the next Congress deal with it, I want to be re-elected and get my pension, health care and all the perks I can get! I couldn't care any less about what has to be done, its al;l about me!
At 9:30 the DJIA opened down 19 points after trading higher in pre-market activity. The 10 yr note moved back to unchanged after being down 8/32 at 9:00. Mortgage prices at 9:00 were down 5/32 (.15 bp), at 9:30 off 3/32 (.09 bp). The 10 yr note holding at and unable to break below 2.90% but may make it as long as the equity markets are under pressure as the economic outlook weakens.
Most of the talk this morning is still over the IEA and Obama Administrations decision to take oil from the strategic reserve to supposedly drive down the price of oil thus gasoline. Both oil and Gasoline had already fallen in the past two weeks, gasoline down about 20% from recent highs and crude oil down about $10.00 frm recent highs. Was it just a political move by Obama, or was it necessary? I'll leave the answer to those that are more familiar with the details in the global oil markets. 60 mil barrels accounts from anywhere between 16 hours and 8 hours of oil usage globally, we hear both stats being bantered around. Politically Republicans saying tapping the reserve at this point was unnecessary and set a bad precedent; Democrats saying it is necessary for improving economic recovery. The other view being talked about, showing OPEC they can't get away with not increasing output as it did a week ago.
As far as helping economic recovery with 60 mil more oil over the next 30 days seems a little too optimistic. The world will get 2 mil barrels a day for 30 days, then what? If the global economy were to immediately re-start growth the price of oil and gasoline will climb right back up. The only way to get oil lower and keep it low is for oil producers to open the taps and increase output dramatically and that isn't on the table now, and likely will never be there.
Yesterday afternoon reports hit that the EU and IMF had agreed on a bail-out package for Greece; the news hit at 3:00 with the DJIA down 180 points, at the end of the session an hour later the DJIA closed down 59 points. The news was welcome but at the moment there still is no lock on the plan. Greece’s next hurdle is to shepherd 78 billion euros ($111B) of austerity measures through parliament, after yesterday’s endorsement of the program by from the European Commission, the European Central Bank and the International Monetary Fund. “We have agreed that there will be a new program for Greece,” German Chancellor Angela Merkel told reporters at an EU summit in Brussels today. “This is an important decision that says once again we will do everything to stabilize the euro overall.”
In Washington, the land of Oz, the work on the budget and debt increase continues. Work of course is a relative term, in this case the work is about who gets re-elected. That is what we have in Washington, people sent there to work on their re-election campaigns. Stupid is as stupid does according to Forrest Gump, he must have spent time in the city. Republicans walked away from discussions yesterday, a show of adolescent behavior; Democrats equally childish, unwilling to accept cuts in most programs unless they get tax increases. The saga will go on and on until the final hour on August 1st, then it will not be a meaningful measure as our leadership continues to kick the can down the road as they have done for the last three years with no budget. Let the next Congress deal with it, I want to be re-elected and get my pension, health care and all the perks I can get! I couldn't care any less about what has to be done, its al;l about me!
At 9:30 the DJIA opened down 19 points after trading higher in pre-market activity. The 10 yr note moved back to unchanged after being down 8/32 at 9:00. Mortgage prices at 9:00 were down 5/32 (.15 bp), at 9:30 off 3/32 (.09 bp). The 10 yr note holding at and unable to break below 2.90% but may make it as long as the equity markets are under pressure as the economic outlook weakens.
June Pending Home Sales 2011
LOS ANGELES (June 21) – California pending home sales rose in May, posting the first year-over-year increase in 18 months, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today. Pending home sales:
Pending home sales in California rose in May, according to C.A.R.’s Pending Home Sales Index (PHSI)*. The index was 118.3 in May, up 1.6 percent from April’s revised index of 116.4, based on contracts signed in May. The index also was up 12 percent from May 2010. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
“May marked the first year-over-year increase in pending sales since November 2009 and the largest annual increase since August 2009,” said C.A.R. President Beth L. Peerce. “May’s increase in pending sales is consistent with our expectation that home sales in the second half of 2011 should be higher compared with the second half of 2010, and as a result, annual sales for all of 2011 should match or exceed last year’s annual pace.”
Distressed housing market data:
The total share of all distressed property types sold statewide was unchanged in May from April’s 48 percent, but up from 46 percent in May 2010.
Non-distressed sales made up the remaining share at 52 percent in May, unchanged from April but down from 54 percent in May 2010.
Of the distressed properties sold statewide, the total share of REO (real estate-owned) sales was 28 percent in May, unchanged from April, but up from 26 percent in May 2010.
At 19 percent, the statewide share of short sales also was unchanged in May, but down from 20 percent in May 2010.
Wednesday, June 15, 2011
Thursday, April 28, 2011
April May 2011 Rates
Rates continue to be stable over this week with 30 Year Fixed Conforming (up to $417,000) at 4.75 %, High Balance ($417,000 to $729,750) at 4.875% and Jumbo (over $729,750) at 5.75%. FHA is at 4.5% for Conforming and 4.625% for High Balance.
The FHA Condominium approval checklist is below. To check to make sure a condo is approved, simply go into the link below and enter the zip code that the property is located in. Check to make sure the condo approval expiration date is before the loan closing date.
https://entp.hud.gov/idapp/html/condlook.cfm
The FHA Condominium approval checklist is below. To check to make sure a condo is approved, simply go into the link below and enter the zip code that the property is located in. Check to make sure the condo approval expiration date is before the loan closing date.
https://entp.hud.gov/idapp/html/condlook.cfm
Tuesday, March 15, 2011
What is a Mello-Roos fee?
What is a Mello-Roos fee?A Mello-Roos fee is a separate charge on a property tax bill in addition to the 1% property tax rate allowed by Proposition 13. The funds are used exclusively to pay for public facilities such as police and fire departments, schools, parks, roads and libraries, etc.
How are Mello-Roos assessment fees established?Mello-Roos fees are normally established at the request of a major developer to finance the necessary public facilities to serve the new development. The public agency issues tax-exempt bonds to pay for these public facilities over a number of years. Commercial and industrial property owners are also subject to Mello-Roos.
Who authorized the establishment of Mello-Roos districts?The Mello-Roos Community Facilities Act of 1982 was co-authored by Senator Henry Mello and Assemblyman Mike Roos and authorized by State law to allow any public agency to implement fees and issue the necessary tax exempt bonds.
How can I determine if my property is in a Mello-Roos district?Your property tax bill will identify Mello-Roos fees as a Community Facilities District (CFD), followed by a number and the amount of tax.
How much is a typical Mello-Roos assessment fee?Typically, a formula that relates to the size of the home (lot size or square footage) is used to determine the amount of an individual assessment. The amount of taxes is established before the home is built as is not based on the current value of the property.
How do I pay these taxes?Your Mello-Roos tax will typically be collected with your general property tax bill.
What happens if a tax payment is late?Because the Mello-Roos tax is usually collected with your general property tax bill, the Facilities District that obtained the lien may withdraw the assessment from the tax roll and begin foreclosure proceedings. Mello-Roos taxes are subject to the same penalties that apply to regular property taxes.
How long will these Mello-Roos fees last?Typically, the bonds are paid off in 20 years, but State law allows up to 40 years. Those who purchase a new home have the option to pay for their Mello-Roos tax in its entirety at the time of purchase.
Will my Mello-Roos fee increase?It can, however, this special tax can increase only at a maximum rate of 2% per year over a 25 year period. On the other hand, it's also possible that this tax will decrease, should State or other funds become available that could be used to reduce existing bond indebtedness, or be used to construct new facilities in lieu of additional bond sales.
Who can I contact regarding Mello-Roos fees?Contact your local County Assessor's Office. They have the phone numbers and names of persons to call for each Mello-Roos District.
Thursday, March 10, 2011
2011 March Interest Rates
Rates continue at the same levels and although volatile, are moving up and down in range daily. Conforming 30 Year Fixed (under $417,000) is at 4.75%, High Balance ($417,000 to $729,750) is at 4.875 and Jumbo (over $729,750) is at 5.75%.
Remember to get your FHA buyers locked into a property and open escrow prior to April 18, 2011. After that date, the mortgage insurance rates will go from a factor of .9% to 1.15%. On a $300,000 purchase price, the monthly payment will increase $60 per month. On a $500,000 purchase price, the monthly payment will increase $100 per month.
Monday, October 18, 2010
When was the Supplemental Property Tax law enacted?
When was the Supplemental Property Tax law enacted?
Governor George Deukmejian signed this Tax into law in July of 1983. It is expected to produce over $300million per year in revenue to aid California Schools.
How does this Tax effect Homeowners?
Supplemental Property Taxes only effect individuals who are buying property or initiating new construction. After the purchase or new construction is complete, the new owner will receive a bill for supplemental property taxes, which will become a lien against the property as of the date of ownership changes or upon the date of completion of new construction.
When and how are bills generated?
It is not easy to predict when the new property owner will be billed. It could be as soon as 3 weeks after escrow closes or new construction is complete. It also could take 6 months or more depending on the county the property is located and work loads of the assessors office, Controller and Tax collector. The Assessor will appraise the property and advise the owner of the supplemental assessment amount. The owner has the option to discuss the valuation, apply for a homeowners exemption and be informed about there right to file an assessment appeal. The Assessor then will calculate the amount of the supplemental tax bill to the property owner. This will include the amount owed, due date and if not paid, the delinquent date.
How will the amount of the bill be determined?
There is a formula used to determine the tax bill. The total Supplemental assessment will be prorated based on the number of months remaining until June 30. The supplemental tax becomes effective on the first day of the month following the month in which the change of ownership took place or new construction was completed. If it takes place July, 1 then there will be no supplemental assessment of the current tax roll and the entire supplement assessment will be made to the tax roll being prepared.
Can the Supplemental Tax Bill be paid in installments?
All payments are made in two equal installments. If the bill is mailed within the months on July through October the first installment will be delinquent on Dec, 10. The second installment will be delinquent April, 30.
Will Supplemental Property Taxes be prorated in Escrow?
Not usually . Unlike ordinary annual taxes, the supplemental tax is a one time tax due for the period from the date of new ownership or completed construction. The obligation of this tax is entirely that of the property owner.
Governor George Deukmejian signed this Tax into law in July of 1983. It is expected to produce over $300million per year in revenue to aid California Schools.
How does this Tax effect Homeowners?
Supplemental Property Taxes only effect individuals who are buying property or initiating new construction. After the purchase or new construction is complete, the new owner will receive a bill for supplemental property taxes, which will become a lien against the property as of the date of ownership changes or upon the date of completion of new construction.
When and how are bills generated?
It is not easy to predict when the new property owner will be billed. It could be as soon as 3 weeks after escrow closes or new construction is complete. It also could take 6 months or more depending on the county the property is located and work loads of the assessors office, Controller and Tax collector. The Assessor will appraise the property and advise the owner of the supplemental assessment amount. The owner has the option to discuss the valuation, apply for a homeowners exemption and be informed about there right to file an assessment appeal. The Assessor then will calculate the amount of the supplemental tax bill to the property owner. This will include the amount owed, due date and if not paid, the delinquent date.
How will the amount of the bill be determined?
There is a formula used to determine the tax bill. The total Supplemental assessment will be prorated based on the number of months remaining until June 30. The supplemental tax becomes effective on the first day of the month following the month in which the change of ownership took place or new construction was completed. If it takes place July, 1 then there will be no supplemental assessment of the current tax roll and the entire supplement assessment will be made to the tax roll being prepared.
Can the Supplemental Tax Bill be paid in installments?
All payments are made in two equal installments. If the bill is mailed within the months on July through October the first installment will be delinquent on Dec, 10. The second installment will be delinquent April, 30.
Will Supplemental Property Taxes be prorated in Escrow?
Not usually . Unlike ordinary annual taxes, the supplemental tax is a one time tax due for the period from the date of new ownership or completed construction. The obligation of this tax is entirely that of the property owner.
Sunday, October 10, 2010
Wednesday, September 29, 2010
October 2010 Rates
Rates are still volatile but trending lower after the Federal Reserve announcement last week that they may resort to further means to ease rates. They have not announce exactly what that would be but the bond markets are reacting favorably in anticipation.
Conforming 30 Year Fixed (under $417,000) are at 4% with High Balance ($417,000 to $729,750) at 4.375% and Jumbo at 5.5%. 15 Year Fixed Conforming is at 3.75%, High Balance is at 3.875% and Jumbo is at 5%.
This is an excellent time for buyers to get into a house as the affordability index is high due to these lower rates!
Sunday, September 26, 2010
Saturday, September 25, 2010
Bank Rates for Sept-October 2010
The Federal Reserve Board issued a statement this week saying that they were concerned that inflation is too low. This statement is fueling a decline in the dollar, higher gold and other commodity prices and lower interest rates.
30 Year Fixed (under $417,000) are at 4%, High Balance ($417,000 to $729,750) are at 4.25% and Jumbo (over $729,750) are at 5.5%. Conforming 15 Year Fixed at at 3.75%, High Balance at 3.875% and Jumbo at 5.25%.
The October 4th date for the change in the FHA mortgage formula is quickly approaching. Make sure your FHA clients are aware of this change which will increase their monthly payments.
Monday, September 13, 2010
FHA Changes for October 2010
FHA has made changes to the qualifying guidelines for an FHA loan which will go into effect on any new originations with case numbers pulled on or after October 4, 2010. The most notable change for the borrowers qualifications are the new MI requirements.
Effective October 4, 2010 on all new originations, up front Mortgage Insurance (MI) which is financed into the loan goes from 2.25% to 1% for loans greater than 15 years in duration and over 95% loan to value. HUD has also changed the monthly mortgage insurance from the current .55% to range from .85% (95% or less LTV) to .90% (over 95% LTV) on 20 and 30-year loans and 0% (90% or less LTV) to .25% (over 90% LTV) for 15-year loans.
Here is what this means for the average FHA borrower purchasing a home for $300,000 and is going to put down 3.5% and will finance his/her upfront mortgage insurance premium. Here is how the deal looks today versus post October 4th 2010 changes.
OLD NEW
Borrowers Payment @ 4.5% $1,499.85 $1,481.52
MMI Monthly Payment $ 132.69 $ 217.13
Total Payment $2,010.04 $2,076.15
FHA has essentially lowered the borrowers Principal & Interest payment and increased the borrowers Monthly Mortgage Insurance by $66.11 which is not a substantial increase for qualifying. The reason HUD has done this is to provide FHA much needed capital. This will build the capital needed much quicker on a monthly bases versus financing a large amount of the overall insurance over the life of the loan.
**please remember that the borrowers will also need to impound their property taxes and hazard insurance into the monthly payment**
Effective October 4, 2010 on all new originations, up front Mortgage Insurance (MI) which is financed into the loan goes from 2.25% to 1% for loans greater than 15 years in duration and over 95% loan to value. HUD has also changed the monthly mortgage insurance from the current .55% to range from .85% (95% or less LTV) to .90% (over 95% LTV) on 20 and 30-year loans and 0% (90% or less LTV) to .25% (over 90% LTV) for 15-year loans.
Here is what this means for the average FHA borrower purchasing a home for $300,000 and is going to put down 3.5% and will finance his/her upfront mortgage insurance premium. Here is how the deal looks today versus post October 4th 2010 changes.
OLD NEW
Borrowers Payment @ 4.5% $1,499.85 $1,481.52
MMI Monthly Payment $ 132.69 $ 217.13
Total Payment $2,010.04 $2,076.15
FHA has essentially lowered the borrowers Principal & Interest payment and increased the borrowers Monthly Mortgage Insurance by $66.11 which is not a substantial increase for qualifying. The reason HUD has done this is to provide FHA much needed capital. This will build the capital needed much quicker on a monthly bases versus financing a large amount of the overall insurance over the life of the loan.
**please remember that the borrowers will also need to impound their property taxes and hazard insurance into the monthly payment**
Monday, September 6, 2010
Thursday, August 26, 2010
Thursday, July 8, 2010
July Loan Rate Update
Rates continue at low levels as concerns have grown that the economic recovery could falter in the second half of the year. The economy continues a slow recovery evidenced by the unfavorable jobs report, auto sales and manufacturing activity decreases, drop in home sales due to the end of the Federal Tax Credit and stocks down 10% for the second quarter, all causing low consumer confidence.Now for the good news...rates are at the lowest level in over 50 years!
Conforming 30 Year Fixed (under $417,000) are at 4.375%, High Balance ($417,000 to $729,750) are at 4.5% and Jumbo at 6%. Conforming 15 Year Fixed are especially low at 3.75%, 4.0% and 5.75%, respectively.
Friday, July 2, 2010
Monday, June 21, 2010
Sunday, June 13, 2010
Saturday, June 12, 2010
Thursday, June 10, 2010
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Southern California Units that are still a good buy. Even in this tought Real Estate Market!
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Monday, May 17, 2010
Thursday, May 13, 2010
May Rates 2010
Rates are at lower levels as the decreases in the stock market has caused investors to move their money to the safety of the bond markets.
Confoming 30 Year Fixed (under $417,000) is at 4.75% with High Balance ($417,000 to $729,750) at 5%. FHA is at 4.75% for conforming and 4.875% for High Balance. Jumbo (over $729,750) is at 5.875% for 30 Year Fixed and 4.75% for 5 Year Fixed.
Thursday, April 15, 2010
Rates For April
Rates continue at great levels with Conforming 30 Year Fixed (up to $417,000) at 4.875% and High Balance ($417,000 to $729,750) at 5.125%.
More lenders are re-introducing Jumbo Loans (over $729,750) with 30 Year Fixed at 6% and 5 Year Fixed at 4.75%. Jumbo Loans are available up to $3 Million so have your buyers in this market call me.
More on the Fannie Mae Home Path and the Freddie Mac Home Steps Programs
There are great loans available from Fannie Mae on purchases of Fannie Mae owned properties. You can check on their website for listings by zip code at www.homepath.com. These guidelines are much easier to qualify for especially for condos that do not need complex approval.
Unique Home Path Financing offers:
Up to 95% Loan to Value/5% Downpayment with NO MORTGAGE INSURANCE
Up to 6% Seller Contribution (This will be needed as the high LTV is expensive...see pricing below)
No Appraisal Required
Available for Investors with 10% Down (call for adds)
There are adds for Condos, High Loan to Value, Investment Property and FICO Scores between 620 and 720 which can be covered by asking for up to 6% Seller Concession.
Example:
Purchase Condo at 95% Loan to Value
Up to $417,000 Loan Amount - 5% With 3.25 Point Add with 720 FICO Score Plus Closing Costs
High Balance Loan Amount - 5.25% With 3.25 Add with 720 FICO Score Plus Closing Costs
More lenders are re-introducing Jumbo Loans (over $729,750) with 30 Year Fixed at 6% and 5 Year Fixed at 4.75%. Jumbo Loans are available up to $3 Million so have your buyers in this market call me.
More on the Fannie Mae Home Path and the Freddie Mac Home Steps Programs
There are great loans available from Fannie Mae on purchases of Fannie Mae owned properties. You can check on their website for listings by zip code at www.homepath.com. These guidelines are much easier to qualify for especially for condos that do not need complex approval.
Unique Home Path Financing offers:
Up to 95% Loan to Value/5% Downpayment with NO MORTGAGE INSURANCE
Up to 6% Seller Contribution (This will be needed as the high LTV is expensive...see pricing below)
No Appraisal Required
Available for Investors with 10% Down (call for adds)
There are adds for Condos, High Loan to Value, Investment Property and FICO Scores between 620 and 720 which can be covered by asking for up to 6% Seller Concession.
Example:
Purchase Condo at 95% Loan to Value
Up to $417,000 Loan Amount - 5% With 3.25 Point Add with 720 FICO Score Plus Closing Costs
High Balance Loan Amount - 5.25% With 3.25 Add with 720 FICO Score Plus Closing Costs
Monday, January 25, 2010
Saturday, January 23, 2010
Monday, December 21, 2009
Friday, December 11, 2009
December Loan Rates 2009
Rates continue to be very low. Investors interest in longer term US debt is not presently strong which may cause rates to rise in the near future.
For now, Conforming 30 Year Fixed (up to $417,000) is 4.75%, High Balance ($417,000 to $729,750) is 4.875 and Jumbo (over $729,750) is at 6.125%.
Five Year Fixed Conforming is at 3.75%, High Balance is 4% and Jumbo is 4.75%.
Beware that many investor/bank guidelines for FHA loans are requiring a second appraisal on loan amounts above $417,000. This is coming up during underwriting. It is not an FHA guideline but has been noted on the high balance FHA loans lately.
I hope you are enjoying all your Holiday festivities. Please call me if there is anything I can do to help you! If I am not in the office I will be available via cell phone or email through the Holidays.
Susan Van Wagenen
Terra Mortgage
Phone: 714-323-5559
Fax: 714-242-9666
susanvanwagenen@earthlink.net
Five Year Fixed Conforming is at 3.75%, High Balance is 4% and Jumbo is 4.75%.
Beware that many investor/bank guidelines for FHA loans are requiring a second appraisal on loan amounts above $417,000. This is coming up during underwriting. It is not an FHA guideline but has been noted on the high balance FHA loans lately.
I hope you are enjoying all your Holiday festivities. Please call me if there is anything I can do to help you! If I am not in the office I will be available via cell phone or email through the Holidays.
Susan Van Wagenen
Terra Mortgage
Phone: 714-323-5559
Fax: 714-242-9666
susanvanwagenen@earthlink.net
Friday, December 4, 2009
Rates Are the Best Ever!
Rates continue at very low levels with 30 Year Fixed Conforming (up to $417,000) at 4.75%, High Balance ($417,000 to $729,750) at 4.875%, and Jumbo at 6.125%.
Five Year Fixed Conforming is at 3.75%, High Balance at 4% and Jumbo at 4.75%.
Fannie Mae is implementing some new guidelines December 12th. The most important is that the maximum allowable debt ratio will be reduced to 45%. Please make sure that your clients that were pre-approved prior to that date with higher ratios may need to be run again after 12/12/2009.
Five Year Fixed Conforming is at 3.75%, High Balance at 4% and Jumbo at 4.75%.
Fannie Mae is implementing some new guidelines December 12th. The most important is that the maximum allowable debt ratio will be reduced to 45%. Please make sure that your clients that were pre-approved prior to that date with higher ratios may need to be run again after 12/12/2009.
Thursday, September 3, 2009
September Lending Update
Rates are almost to 4.875% for a 30 day lock. I can actually get 4.875% on a 15 day lock but I hesitate to post that since you must float the loan until final underwriting approval and be able to close in 15 days. Beware of many lenders that post lower rates that may be for short lock periods. I really try to be realistic for you.Conforming 30 Year Fixed (under $417,000) is at 5% with High Loan Balance ($417,000 to $729,750) is at 5.375%. FHA is at 5% and 5.125% for the High Loan Balance. Jumbo 30 Year Fixed is coming back at 6.5% and 5 Year Fixed is at 5.375%. Fantastic!
Attention buyers time is running out for the $8,000 first time homebuyer tax credit is set to expire at the end of this year. The purchase transaction must close on 11/30/2009 to qualify.
Thursday, August 27, 2009
Susan's Corner
Rates have eased again this week as there were good reports affecting the long term bond yields reflecting an easing of risk aversion to mortgages. China has shown increased interest in buying US Bonds again.The Conference Board released the Consumer confidence Index for August on Tuesday and the reading was 54.1 versus a forecast of 46.6. This means that consumers were more optimistic about their own financial situations.
The Commerce Department showed a 4.9% increase in durable goods orders for the manufacturing sector. Also released was the July's New Home Sales data that came in at 9.6% above forecast and the best level since September 2008. Last week the Existing Home Sales rose 7.2% month over month to the highest level in two years.
Conforming 30 Year Fixed interest rates are at 5% (up to $417,000) with Conforming High Balance at 5.5% ($417,000 to $729,750). FHA is at 5% and 5.25%. Jumbo loan (over $729,750) continue to be available for 3, 5, 7 and 10 Year Fixed with 5 Year Fixed at 5.75%.
The 5 and 7 year fixed product is coming back into the market for conforming loan with 5 year fixed at 4.25%.
This should be good news to get our buyers to market! Please call me with any questions.
Susan
Susan Van Wagenen
Terra Mortgage
Phone: 714-323-5559
Fax: 714-242-9666
susanvanwagenen@earthlink.net
Monday, August 24, 2009
Wednesday, July 22, 2009
Susans Corner
Rates are lower this week due to a bond rally as a result of the Fed ChairmanBernanke's semi-annual testimony to Congress on the state of the economy and
monetary policy. He stated that the economy's slowdown has slowed
significantly, meaning the recession my be ending relatively soon. He cautioned
that there is uncertainty ahead for the economy and strengthening may be
gradual. He also stated that the labor market remains weak and unemployment
will likely remain higher until 2012.
The weak employment and housing markets should help keep inflation under control
in the near future making bonds more attractive to investors and favorable
mortgage rates.
Conforming fixed rates (under $417,000) are at 5.125% and High Balance ($417,000
to $729,750) are at 5.5%. FHA rates are the same today.
The Housing and Economic Recovery Act's (HERA) Mortgage Disclosure Improvement
Act (MDIA) goes into effect with loans registered after July 30, 2009. I will
summarized what the changes mean to our transactions.
1) Saturdays count as a business day for the disclosure dates discussed below.
2) Upfront fees (except credit report fee) cannot be be charges until the
borrower receives the initial Truth in Lending/Good Faith Estimate from the
Lender. TERRA MORTGAGE DOES NOT CHARGE UPFRONT FEES. Wells Fargo (for one) is
including the appraisal fee in this and saying that the appraisal cannot be
ordered until the 4th day after disclosures are sent to the borrwer. Other
lenders are not including the payment to the appraisal company since it is not a
payment to the lender but to a third party appraisal company. I will get
clarification on this as the date gets closer. We would hate to see the
appraisal ordering delayed in the already muddied process due to the Home
Valuation Code of Conduct (HVCC) instituted May 1st.
3) The initial Truth in Lending/Good Faith Estimate is required on all
purchases and refinances of primary residences and second homes. This does not
apply to non-owner occupied loans. TERRA MORTGAGE HAS ALWAYS SENT THE
DISCLOSURES CONTAINING THE TRUTH IN LENDING/GOOD FAITH ESTIMATE OUT TO THE
BORROWERS WITHING THE FIRST WEEK THAT THE LOAN IS OPENED.
4) The Truth in Lending/Good Faith Estimate must be provided at least seven
business days before the closing/sign date. Loans cannot close until the 8th
business day. (It has been very difficult to close loans that quickly anymore
anyways.
5) An increase in fees by more than .125% or 1/8th requires re-disclosure of
the Truth in Lending/Good Faith Estimate at least three days before closing. If
mailed, the documents are considered "received" 3 business days after mailing.
WHENEVER A BORROWER HAS AN EMAIL ADDRESS, I EMAIL THESE DOCUMENTS TO CUT THE 3
DAY MAIL TIME.
This is the change that is going to sting us. If charges change to the borrower
at the end of escrow, we will need to re-discloses and hold closing for the
three day wait time. That would include lock extension charges, adjustments in
points (borrowers may decide to pay more in points to lower their rate at the
end of a transaction), escrow fees, title fees, appraisal review charges or any
miscellaneous charges. We, at Terra Mortgage, will do everything we can to
ensure we have charges from all parties set three days prior to documents.
I just want you to all be prepared for some possible hold ups at the end of a
transaction. I promise to keep them to a minimum!
Susan
Susan Van Wagenen
Terra Mortgage
Phone: 714-323-5559
Fax: 714-242-9666
susanvanwagenen@earthlink.net
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Information You need!
HVCC Continues to devastate home values across the US. We fear that with higher Fannie and Freddie loan limits it will carry through to our former “jumbo” markets, leading the country even further into recession.
As we’ve shared, Representatives Childers (D-MS) and Miller (R-CA) introduced legislation (H.R. 3044) requesting an 18 month moratorium on the Home Valuation Code of Conduct (HVCC). H.R. 3044 now has 22 co-sponsors and now is the time to forward our petition to every person you know and every representative in the country.
Read some of the comments in the petition and you will soon understand the harmful nature of this horribly misguided code. ThinkBigWorkSmall applauds the introduction of H.R. 3044 and would like to thank Representative Childers (D-MS) and Representative Miller (R-CA) for their continued efforts and leadership on this issue but it is not enough.
Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo’s rule. HVCC needs to be permanently reversed in order to restore lower costs to the consumer and to protect the thousands of real estate transactions stalled by this horribly misguided code.
Please sign and forward the following petition and forward to everyone you know in the industry and ask them to forward to their representatives: www.hvccpetition.com
As we’ve shared, Representatives Childers (D-MS) and Miller (R-CA) introduced legislation (H.R. 3044) requesting an 18 month moratorium on the Home Valuation Code of Conduct (HVCC). H.R. 3044 now has 22 co-sponsors and now is the time to forward our petition to every person you know and every representative in the country.
Read some of the comments in the petition and you will soon understand the harmful nature of this horribly misguided code. ThinkBigWorkSmall applauds the introduction of H.R. 3044 and would like to thank Representative Childers (D-MS) and Representative Miller (R-CA) for their continued efforts and leadership on this issue but it is not enough.
Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo’s rule. HVCC needs to be permanently reversed in order to restore lower costs to the consumer and to protect the thousands of real estate transactions stalled by this horribly misguided code.
Please sign and forward the following petition and forward to everyone you know in the industry and ask them to forward to their representatives: www.hvccpetition.com
Tuesday, July 21, 2009
$8,000 Credit Running Out Soon...
Bringing the Dream of Homeownership Within Reach
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.
Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Breaking news: Tax Credit Can Be Used on Closing Costs.
Who Qualifies?
First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:
The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.
Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Breaking news: Tax Credit Can Be Used on Closing Costs.
Who Qualifies?
First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:
The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.
Wednesday, July 1, 2009
Friday, June 19, 2009
Rate Updates
Wednesday's bond rally was short lived fueled by a lower than expected Consumer Price Index and a weaker than expected Producer Price Index meaning inflation was less of a threat than many had thought. This is good news because if the Fed becomes concerned about inflation, we would likely see bonds fall and mortgage rates rise.
Borrowers need to get in the market and grab this interest rates before we see inflation as a result of the mounting deficits which will cause our rates to rise.
Wednesday afternoon, this rally quickly turned sour as reports of a weakening dollar makes bonds less valuable to international investors. Rates have increased again this morning due to bond weakness although we are still lower than last week.
Conforming and FHA 30 Year Fixed Rates (up to $417,000) are at 5.5% and HIgh Balance (Up to $729,750) are at 5.875%.
Jumbo Loans are Available - 5, 7 and 10 year rates are available for those borrowers with loans over $729,750. The current 5 year fixed rate is 5.875%.
Borrowers need to get in the market and grab this interest rates before we see inflation as a result of the mounting deficits which will cause our rates to rise.
Wednesday afternoon, this rally quickly turned sour as reports of a weakening dollar makes bonds less valuable to international investors. Rates have increased again this morning due to bond weakness although we are still lower than last week.
Conforming and FHA 30 Year Fixed Rates (up to $417,000) are at 5.5% and HIgh Balance (Up to $729,750) are at 5.875%.
Jumbo Loans are Available - 5, 7 and 10 year rates are available for those borrowers with loans over $729,750. The current 5 year fixed rate is 5.875%.
Friday, June 12, 2009
Susans Mortgage Minute
While the stock markets are rising over the past week, the bond markets are facing the opposite. Treasury yields/mortgage rates are rising. Rising stocks prompt people to move their money away from the bond market and into stocks. This week there was news that Russia will start selling some on the US Treasury Securities it currently holds. All of the above cause the rates to increase.This morning had good news, however, as the 30 Year bond auction was met with strong demand from investors which improved this mornings rate slightly. This rally may be short-lived if there are no other reports to continue its support. Conforming 30 year fixed rates are at 5.75% and High Balance at 6%. (Yes those rates are down from early this morning!) FHA are the same. Still at historically low but 1% above two weeks ago.Call Susan at 714-747-5670
Sunday, May 31, 2009
Data Quick Website..Great Information!
California April Home SalesAn estimated 37,967 new and resale houses and condos were sold statewide last month. That was up 4.8 percent from 36,215 in March and up 21.9 percent from 31,150 in April 2008. Sales have increased on a year-over-year basis the last 10 months. California sales for the month of April have varied from a low of 27,625 in 1995 to a peak of 71,638 in 2004, while the average is 45,088 sales. MDA DataQuick's statistics go back to 1988... full story
Monday, May 18, 2009
Monday, April 27, 2009
Saturday, April 25, 2009
Wednesday, April 22, 2009
Thursday, April 9, 2009
Save the Mortgage Interest Deduction!
Save the Mortgage Interest Deduction!
“Our initial analysis of your budget proposal forecasts home price declines and added damage to the broader economy because of reduced consumer spending, additional increases in foreclosures and additional increases in joblessness.”
February 26, 2009, Letter to President Obama
Charles McMillan, CIPS, GRI
2009 President, National Association of REALTORS®
This is not what Homeowners want to read right now. In this uncertain economy, home ownership must be protected.
The Mortgage Interest Deduction is the most important tax benefit of homeownership, yet the federal government has proposed taking it away, which will adversely impact the housing market and values in California.
C.A.R.’s Government Affairs Team and the REALTOR® Action Fund is fighting to save the Mortgage Interest Deduction. Your help is needed! A $49 investment will help educate, advocate and protect your interests. For the price of a slice of pizza each month, you can protect homeownership. C.A.R.’s bi-partisan REALTOR® Action Fund fights for Congressional incumbents and candidates who have protected your right to serve clients and sell real estate.
Critical to protecting homeownership and revitalizing the market is saving the Mortgage Interest Deduction. Please join with C.A.R.’s Government Affairs Team and the REALTOR® Action Fund and invest $49 today.
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Monday, April 6, 2009
!!Hot!! Foreclosure Properties Call Mike Colonna 714-747-5670
Address City St Zip Property Retail Value
2718 7TH AVE LOS ANGELES CA 90018 Ranch $130,000.00
2428 E 112TH PL LOS ANGELES CA 90059 MFD/2 unit $130,000.00
223 S ACACIA AVE COMPTON CA 90220 Condo $80,000.00
2704 BLACK GUM CT CHULA VISTA CA 91915 Condo $180,000.00
78341 DARBY RD INDIO CA 92201 Ranch $389,374.00
13967 CACTUS DR DESERT HOT SPRINGS CA 92240 Ranch $55,000.00
21199 NEOLA RD APPLE VALLEY CA 92308 Ranch $125,000.00
10545 VALENCIA ST BLOOMINGTON CA 92316 1 story/bnglw $80,000.00
17939 RAYMOND CT FONTANA CA 92336 1 story/bnglw $100,000.00
16370 MESQUITE STREET HESPERIA CA 92345 Ranch $110,000.00
145 N RIVERSIDE AVE RIALTO CA 92376 MFD 2 unit $243,184.00
13047 MADISON CIR VICTORVILLE CA 92392 2 story $120,000.00
2671 N I ST SAN BERNARDINO CA 92405 Ranch $95,000.00
130 132 134 W 11TH SAN BERNARDINO CA 92410 Land Only $30,000.00
918 AND 922 CENTER ST RIVERSIDE CA 92507 MFD - 2 unit $160,000.00
510 E 10TH ST HANFORD CA 93230 Bungalow $78,000.00
1951 G ST WASCO CA 93280 Ranch $50,000.00
709 32ND ST BAKERSFIELD CA 93301 Ranch $70,000.00
2301 GREENWOOD BAKERSFIELD CA 93306 Ranch $80,000.00
2608 KAIBAB AVE BAKERSFIELD CA 93306 Ranch $70,000.00
2900 SHELLEY LN BAKERSFIELD CA 93306 Ranch $50,000.00
4100 HIGHLAND HILLS BAKERSFIELD CA 93308 Ranch $90,000.00
344 REAL RD BAKERSFIELD CA 93309 Ranch $60,000.00
21226 78TH ST CALIFORNIA CITY CA 93505 Ranch $85,000.00
21406 79TH ST CALIFORNIA CITY CA 93505 Ranch $75,000.00
8570 JACARANDA AVE CALIFORNIA CITY CA 93505 Ranch $111,400.00
38626 SAN MICHELE CT PALMDALE CITY CA 93550 Ranch $160,000.00
37515 PERSIMMON LN PALMDALE AREA CA 93551 2 story $232,602.00
2718 7TH AVE LOS ANGELES CA 90018 Ranch $130,000.00
2428 E 112TH PL LOS ANGELES CA 90059 MFD/2 unit $130,000.00
223 S ACACIA AVE COMPTON CA 90220 Condo $80,000.00
2704 BLACK GUM CT CHULA VISTA CA 91915 Condo $180,000.00
78341 DARBY RD INDIO CA 92201 Ranch $389,374.00
13967 CACTUS DR DESERT HOT SPRINGS CA 92240 Ranch $55,000.00
21199 NEOLA RD APPLE VALLEY CA 92308 Ranch $125,000.00
10545 VALENCIA ST BLOOMINGTON CA 92316 1 story/bnglw $80,000.00
17939 RAYMOND CT FONTANA CA 92336 1 story/bnglw $100,000.00
16370 MESQUITE STREET HESPERIA CA 92345 Ranch $110,000.00
145 N RIVERSIDE AVE RIALTO CA 92376 MFD 2 unit $243,184.00
13047 MADISON CIR VICTORVILLE CA 92392 2 story $120,000.00
2671 N I ST SAN BERNARDINO CA 92405 Ranch $95,000.00
130 132 134 W 11TH SAN BERNARDINO CA 92410 Land Only $30,000.00
918 AND 922 CENTER ST RIVERSIDE CA 92507 MFD - 2 unit $160,000.00
510 E 10TH ST HANFORD CA 93230 Bungalow $78,000.00
1951 G ST WASCO CA 93280 Ranch $50,000.00
709 32ND ST BAKERSFIELD CA 93301 Ranch $70,000.00
2301 GREENWOOD BAKERSFIELD CA 93306 Ranch $80,000.00
2608 KAIBAB AVE BAKERSFIELD CA 93306 Ranch $70,000.00
2900 SHELLEY LN BAKERSFIELD CA 93306 Ranch $50,000.00
4100 HIGHLAND HILLS BAKERSFIELD CA 93308 Ranch $90,000.00
344 REAL RD BAKERSFIELD CA 93309 Ranch $60,000.00
21226 78TH ST CALIFORNIA CITY CA 93505 Ranch $85,000.00
21406 79TH ST CALIFORNIA CITY CA 93505 Ranch $75,000.00
8570 JACARANDA AVE CALIFORNIA CITY CA 93505 Ranch $111,400.00
38626 SAN MICHELE CT PALMDALE CITY CA 93550 Ranch $160,000.00
37515 PERSIMMON LN PALMDALE AREA CA 93551 2 story $232,602.00
Orange County April 2009 Market Survey
Coinciding with a drop in interest rates and a Wall Street rebound, demand for Orange County housing increased by 22% in just two weeks. Demand, the number of new pending sales over the past month, increased from 2,670 pending sales two weeks ago to 3,247 today, a 577 home increase. Last year’s high of 3,060 pending sales was reached on June 12. Orange County demand has not reached this level since September 2005, the beginning of the current downturn. Last year there were 962 fewer pending sales, totaling 2,285, and two years ago there were 1,114 fewer, totaling 2,133. The active listing inventory shed 580 homes in the past two week, a 5% decrease, totaling 11,026. The active listing inventory has not seen these lower levels since the beginning of April 2006. Last year there were 15,474 homes on the market, 4,448 additional homes compared to today. Two years ago there were 14,010 homes on the market, 2,894 additional homes. The expected market time dropped from 4.35 months two weeks ago to 3.4 months today. The expected market time last year was at 6.77 months, and two years ago it was at 6.57 months. This is the lowest expected market time since March 2006. The distressed homes inventory, foreclosures and short sales, dramatically changed over the past two weeks, dropping by 581 homes to 4,092. The height of the distressed inventory, 5,950, was achieved on August 7, 2008. There are 1,858 fewer distressed homes on the market compared to the height, a 31% drop. The distressed inventory now represents 37% of the current active inventory, dropping from 40% two weeks ago. Foreclosures now have an expected market time of 0.77 months, or three weeks. There are 170 fewer foreclosures on the market, totaling 731. Demand for foreclosures is at 953 pending sales. The foreclosure market is extremely hot. Buyers can expect to compete with multiple offers and sales prices above their list prices. The short sale inventory shed 391 homes in the past two weeks to 3,379 homes. The short sale inventory height, 4,701, was reached on August 7, 2008, coinciding with the total distressed inventory height. There are 1,322 fewer short sales on the market today. Demand for short sales increased by 205 pending sales, totaling 967. Since short sales are subject to lenders approval and are often not changed to pending status until lender approval is received, this may be a sign that lenders are gearing up to curb foreclosures through the accommodation of short sales. Total Orange County pending sales continues to reach record heights week after week. I started tracking the statistic back in September of 2006. After increasing by 355 homes over the past two weeks, the total pending count has reached 4,905 pending sales. Last year at this time, total pending sales totaled 2,852, 1,698 fewer than today. Two years ago it was at 3,047, 1,858 fewer.
Friday, March 20, 2009
Latest Loan News....
This week's Federal Reserve Board meeting adjourned Wednesday afternoon with extremely favorable news regarding the Fed's investment in Treasury securities and mortgage-related bonds. No change was made to short term interest rates as the are already close to zero.
In an effort to push interest rates lower, the central bank announced it will be buying up to $300 Billion in longer term bonds over the next six months. They also said that they plan to purchase $750 Billion in mortgage backed sercurities to free up more capital for mortgage lending.
This will likely give the housing and mortgage sectors a much needed boost!
Conforming 30 year fixed rates are at 4.75% to $417,000 and 4.875% between $417,000 and $625,500. FHA is at 4.875 to $417,000 and 5% for High Balance. With the jumbo market (over $625,500), the best product is the fixed period arm with the Five Year Fixed at 5.5%.
Let's hope for food things in the very near future.
In an effort to push interest rates lower, the central bank announced it will be buying up to $300 Billion in longer term bonds over the next six months. They also said that they plan to purchase $750 Billion in mortgage backed sercurities to free up more capital for mortgage lending.
This will likely give the housing and mortgage sectors a much needed boost!
Conforming 30 year fixed rates are at 4.75% to $417,000 and 4.875% between $417,000 and $625,500. FHA is at 4.875 to $417,000 and 5% for High Balance. With the jumbo market (over $625,500), the best product is the fixed period arm with the Five Year Fixed at 5.5%.
Let's hope for food things in the very near future.
Tuesday, March 17, 2009
Thursday, March 5, 2009
Home Loan News...the Latest!
Weakness in the stock market and moves by the central banks in Europe have helped the bond market this week.The European Central Bank and the Bank of England both cut rates by 1/2%.
The Bank of England announced a plan to purchase long term bonds which boosted bond markets around the world.
As a result, rates have improved across the board.
New guidelines have not been released for the higher loan limits. They are now telling us not to expect anything before April 4th.
Conforming and FHA 30 year Fixed (up to $417,000) is at 5%.
As a result, rates have improved across the board.
New guidelines have not been released for the higher loan limits. They are now telling us not to expect anything before April 4th.
Conforming and FHA 30 year Fixed (up to $417,000) is at 5%.
High Loan Balance (up to $625,500) is at 5.25% with a lender offering an excellent promotion for a undetermined period of time.
High Balance FHA is at 5.5%. Conforming 5 Year fixed loans are available at 4.5%.
I have a new jumbo product that offers 3, 5, 7 and 10 year Fixed Loans.
I have a new jumbo product that offers 3, 5, 7 and 10 year Fixed Loans.
They require 25% down and are priced at one point. The 5 year fixed rate up to $1,000,000 is 5.5%. This loan is available up to $2,000,000. If you have a client interested in loans above $625,500 let me know so that I can get them a custom quote.
Susan Van Wagenen
Terra Mortgage
Phone: 714-323-5559
Fax: 714-242-9666
susanvanwagenen@earthlink.net
.
Susan Van Wagenen
Terra Mortgage
Phone: 714-323-5559
Fax: 714-242-9666
susanvanwagenen@earthlink.net
.
Wednesday, March 4, 2009
Huntington Beach Market Report
HUNTINGTON BEACH
Josh Atwood'sSunday March 1, 2009 market update Median List Price THIS WEEK Real-Time Market Profile Trend $ 799,000
Average Days on Market 143 Asking Price per Square Foot $ 394 Percent of Properties with Price Decrease 47 % Percent Relisted (reset DOM) 16 % Percent Flip (price increased) 4 %
The median single family home price in HUNTINGTON BEACH this week is $799,000.
Market Action Index* Cold!
Buyer's 16 Median Number of Bedrooms Median Number of Bathrooms Median House Size (sq ft) Median Lot Size 2,151 4.0 3.0 4,501 - 6500 Sq. Feet Days-on-market has been trending up recently but the Market Action Index and inventory levels are basically flat and not providing strong indications for the market.
However, prices continue demonstrate a nice up trend in general over the last several weeks. The Market Action Index answers the question "How's the Market?"
By measuring the SUPPLY AND DEMAND current rate of sale versus the amount of the inventory. Local conditions are currently quite strongly in the Buyer's Market zone (below 30). The 90-day Market Action Index stands at 16. With several months of inventory available at the current sales rate, buyers should find ample choice. Index above 30 implies Seller's Market conditions. Below 30, conditions favor the buyer. Bed Bath Med. Sqft Med. Age Inven.
Fountain Valley Market Update
FOUNTAIN VALLEY
Josh Atwood's 92708 Sunday March 1, 2009 market update
The median single family home price in FOUNTAIN VALLEY 92708 this week is $595,000. Median List Price THIS WEEK Real-Time Market Profile Trend $ 595,000
Average Days on Market 111
Asking Price per Square Foot $ 311 Percent of Properties with Price Decrease 39 % Percent Relisted (reset DOM) 6 % Percent Flip (price increased) 7 %
Market Action Index* Cold!
Buyer's 18 Median Number of Bedrooms Median Number of Bathrooms Median House Size (sq ft) Median Lot Size 1,949 4.0 3.0 6,501 - 8,000 Sq. Feet Inventory has been tightening but days-on-market and the Market Action Index have been basically unchanged, not providing strong indication for market conditions.
PRICE This week prices in this zip code bumped up a bit but the trend of recent weeks is generally downward.
A pickup in demand will be reflected in the Market Action Index, so watch that chart to try to identify a trough in the market.
The Market Action Index answers the question "How's the Market?" By measuring the SUPPLY AND DEMAND current rate of sale versus the amount of the inventory.
Local conditions are currently quite strongly in the Buyer's Market zone (below 30).
The 90-day Market Action Index stands at 18. With several months of inventory available at the current sales rate, buyers should find ample choice.
Seal Beach Market Update
SEAL BEACH
Josh Atwood's 90740 Sunday March 1, 2009 market update
The median single family home price in SEAL BEACH 90740 this week is $997,437.
Median List Price THIS WEEK Real-Time Market Profile Trend $ 997,437 Average Days on Market 164
Asking Price per Square Foot $ 470 Percent of Properties with Price Decrease 41 % Percent Relisted (reset DOM) 9 % Percent Flip (price increased) 4 % Market Action Index* Cold! Buyer's 9 Median Number of Bedrooms Median Number of Bathrooms Median House Size (sq ft) Median Lot Size 2,012 3.0 2.6 4,501 - 6500 Sq.
Feet Inventory has been tightening and days-on-market increasing recently.
"How's the Market?" By measuring the SUPPLY AND DEMAND current rate of sale versus the amount of the inventory.
Local conditions are currently quite strongly in the Buyer's Market zone (below 30).
The 90-day Market Action Index stands at 9.
With several months of inventory available at the current sales rate, buyers should find ample choice.
Tuesday, March 3, 2009
Bank Rates and Latest News Updates!
This site not only gives you the latest information re: Bank Ratesbut is a great up to date news source re: the banking industry.
http://bankdeals.blogspot.com/
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