New Conforming Loan Limit and FHA Loan Limit Could help Californias

With the housing market already receiving a little help from the federal funds rate cut made during the inter-meeting a few days ago and another possible rate cut coming up; buyers and homeowners will possibly feel more willing to take the plunge and buy or refinance due to the Economic Stimulus Package of 2008.

 2/14/08 Update: H.R. 5140 Economic Stimulus Package signed by Presiden Bush raises Conforming Loan limit 

3/06/08 Update: New FHA & Conforming Loan Limit for California released by HUD 

Yesterday the House of Representatives signed off on Read more

January 25th, 2008 · Filed Under Keeping an Eye on the Market, Mortgage - Loan Information

2 Comments 

Interest Rates may Drop Lower

The Federal Reserve, in an effort to avoid a recession, surprisingly made an inter-meeting rate cut to the federal funds rate. This latest rate cut left the federal funds rate at 3.5 percent.

The next meeting, on January 29-30, is their formal meeting and it is expected Read more

January 22nd, 2008 · Filed Under Keeping an Eye on the Market, Mortgage - Loan Information

1 Comment 

Positive and Negative Appreciation Seen in the Housing Market Across the U.S.

The rate of home appreciation in the U.S. remained slow but positive in the first quarter of 2007. Each quarter the Office of Federal Housing Enterprise Oversight, an independent entity within the Department of Housing and Urban Development (HUD), releases the housing report House Price Index (HPI).

The HPI uses information from Freddie Mac and Fannie Mae (for which OFHEO has supervisory oversight) to estimate house prices based on mortgage closings of the same house over time. However these one-on-one comparisons of sales prices or appraisal figures Read more

June 12th, 2007 · Filed Under Keeping an Eye on the Market, Real Estate Information

Comment 

Rates Are on the RISE

Interest rates have been on the rise for the past few weeks, with the rate for a 30-year fixed rate mortgage rising to an average of 6.53% according to Freddie Mac. This increase in mortgage rates has dissuaded borrowers from refinancing according to the Mortgage Bankers Association. Are they hoping rates will come down? May be…but what will happen if rates continue to creep up? Borrowers will simply have to refinance or buy with a higher interest rate than the rate they could have obtained today.

June 12th, 2007 · Filed Under Keeping an Eye on the Market

Comment 

Santa Clara County’s Real Estate Market Maintains Its Strength

Although sales volume in the Bay Area continues to be low, the Bay Area as a whole saw median house prices climb last month compared to March of 2006.

The possibility of a slowdown in job growth and or a sizable increase in mortgage rates could Read more

April 20th, 2007 · Filed Under Keeping an Eye on the Market

Comment 

Positive Outlook for 2007 and a Recovery into 2008

According to the National Association of Realtors® consumers are beginning to respond to more favorable housing market conditions but new-home constructions will still be dampened until inventories decline further.

David Lereah, NAR’s chief economist feels we’ve reached the bottom of the cooling housing market in 2006 and the recovery will come well into 2008.

The forecast of the Read more

February 7th, 2007 · Filed Under Keeping an Eye on the Market, Real Estate Information

Comment 

Summary Aug-Dec 2006 Good News!!

These are excellent news for people looking to buy and or refinance. Mortgage rates have continued to slowly drift lower and lower BUT how long will this last??!

Here is a summary of how interest rates have showed according to Freddie Mac’s Primary Mortgage Market Survey

30-year fixed-rate mortgage (FRM) as follows:
For the week ending August 31st the rate averaged 6.44%
For the week ending September 28th the rate averaged 6.31%
For the week ending October 26th the rate averaged 6.40%
For the week ending November 9th the rate averaged 6.33%
For the week ending November 22nd the rate averaged 6.18%
For the week ending November 30th the rate averaged 6.14%
For the week ending December 7th the rate averaged 6.11%

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) as follows:
For the week ending August 31st the rate averaged 6.11%
For the week ending September 28th the rate averaged 6.00%
For the week ending October 26th the rate averaged 6.14%
For the week ending November 9th the rate averaged 6.08%
For the week ending November 22nd the rate averaged 5.99%
For the week ending November 30th the rate averaged 5.95%
For the week ending December 7th the rate averaged 5.92%

One-year Treasury-indexed (ARMs) as follows:
For the week ending August 31st the rate averaged 5.59%
For the week ending September 28th the rate averaged 5.47%
For the week ending October 26th the rate averaged 5.60%
For the week ending November 9th the rate averaged 5.55%
For the week ending November 22nd the rate averaged 5.49%
For the week ending November 30th the rate averaged 5.46%
For the week ending December 7th the rate averaged 5.43%

Frank Nothaft, Freddie Mac vice president and chief economist, explained “higher rates have resulted in houses sitting on the market for longer periods of time, changing the real estate sector into more of a buyer’s market from the seller’s market of the last few years. This is a plus, as it allows potential homebuyers more time to look around and decide what they really want and what they can afford” “And with short-term interest rate increases seemingly on hold, for a while at least, interest rates overall should not experience any big shifts in either direction” “A slowing housing market and signs that inflation is leveling off have helped to lower mortgage rates lately and keep them more affordable” “Looking forward in the housing market, we think that housing is about 2/3 of the way through the correction, and should stabilized by mid-year 2007”

My personal input on all this is as I have said it before, if you have a variable loan that will be re-adjusting soon or if you have an interest only loan, I suggest you refinance now and fix that rate for a longer period of time. You don’t want to be stuck if interest rates end up shooting up next year.

December 13th, 2006 · Filed Under Keeping an Eye on the Market

Comment 

We are in the fifth straight week that Long-term rates dip!

Last week, Freddie Mac’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) averaged 6.48% (with an average of 0.4 points) for the week ending August 24, 2006. This average is LOWER from last week; which was at 6.52%.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.14% for the same week (with an average of 0.5 points). This average is LOWER from last week when it averaged 6.18%.

One-year Treasury-indexed ARMs averaged 5.60% for the same week (with an average of 0.7 points). This average is LOWER from last week when the average was at 5.65%.

Frank Nothaft, Freddie Mac vice president and chief economist, explained “The Fed has acknowledged that it is closely monitoring the housing market as it slows down from last year’s record pace” “Although this fuels arguments about whether we will experience a soft landing or a bursting housing bubble, market watchers also perceive that it is possible that the Fed may stop raising short-term interest rates over the near term. This perception takes upward pressure off mortgage rates.”

Many are speculating that rates will continue to stabilize for the rest of the year and yet others speculate that rates might continue to rise a bit more for the end of the year. In reality nobody can predict the future but we should look at what is happening RIGHT NOW and see that interest rates have stopped rising and in some cases it has dropped enough for the consumer to take advantage and lock in good interest rates before a possible future increase. DON’T get stuck with an interest only ARM or an Option ARM loan in the hopes that rates won’t continue to rise.

August 29th, 2006 · Filed Under Keeping an Eye on the Market

Comment 

Mortgage rates have been dropping since the last weeks of July!

Last week, Freddie Mac’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) averaged 6.55% (with an average of 0.4 points) for the week ending August 10, 2006. This average is LOWER from last week; which was at 6.63%.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.21% for the same week (with an average of 0.4 points). This average went LOWER from last week when it averaged 6.27%.

One-year Treasury-indexed ARMs averaged 5.69% for the same week (with an average of 0.8 points). This average went UNCHANGED from last week when the average was at 5.69%.

Frank Nothaft, Freddie Mac vice president and chief economist, explained “The weaker than expected jobs report combined with the Fed’s decision to pass on raising rates at this last meeting led directly to lower rates this week” “Fed Chief Bernake, in his semi-annual speech to Congress, hinted that another rise in overnight lending rates might not be imminent and financial markets breathed a collective sight of relief,” Frank also mentioned on the previous release “Although lower rates are a welcome sight, we still feel that the 30-year fixed-rate mortgage rate will drift up and down somewhat over the next few months, but will average less than seven percent for the year.”

The present average rates have been slowly coming down from the peak they hit so far this year in week ending July 20th, back to similar averages seen back in the week ending April 27th of this same year.

As you can see, although interest rates have been rising steadily through out the year, now we might be seeing a well needed pause to the rising of interest rates. Lower rates will definitely help many homeowners with ARMs to refinance into a longer term hybrid arm or simply a fixed rate mortgage rather than waiting until later when rates may be higher.

August 17th, 2006 · Filed Under Keeping an Eye on the Market

Comment 

Mortgage rates rise this week was caused by the fear of inflation!

This week, Freddie Mac’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) averaged 6.67% (with an average of 0.4 points) for the week ending June 1, 2006. This average is HIGHER from last week; which was at 6.62%.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.26% for the same week (with an average of 0.5 points). This average went HIGHER from last week when it averaged 6.21%.

One-year Treasury-indexed ARMs averaged 5.68% for the same week (with an average of 0.7 points). This average went HIGHER from last week when the average was at 5.61%.

Frank Nothaft, Freddie Mac vice president and chief economist, explained “The Fed released the minutes of its most recent FOMC meeting, which showed that some members were concerned about inflationary pressure. This caused the bond market yields to rise, and brought about market speculation that the Fed may hikes rates sooner than had been expected,” ”All this combined to nudge rates up again this week”

If you are thinking about refinancing those interest only, option arm or a short term hybrid arm, do it now get an fixed rate mortgage or a long term hybrid arm.

June 2nd, 2006 · Filed Under Keeping an Eye on the Market

Comment 

Mortgage watch 5/19/2006

Provided by Mortgage Track
Mercury News
Average Rates

May 19th, 2006 · Filed Under Keeping an Eye on the Market

Comment 

Long term Mortgage Interest rates drifted higher this week!

This week, Freddie Mac’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) averaged 6.60% (with an average of 0.5 points) for the week ending May 18, 2006. This average is HIGHER from last week; which was at 6.58%.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.23% for the same week (with an average of 0.5 points). This average is slightly HIGHER from last week when it averaged 6.22%.

One-year Treasury-indexed ARMs averaged 5.62% for the same week (with an average of 0.7 points). This average is UNCHANGED from last week when the average was at 5.62%.

Frank Nothaft, Freddie Mac vice president and chief economist, explained “While financial markets try to decipher the spate of recently released economic reports, mortgage rates drifted s lightly higher,” “The current debate is between rising inflation and slower consumer spending. Until the market finds out which influence will be the strongest, mortgage rates should continue to fluctuate as they have the last couple of weeks.”

If you are thinking about refinancing those interest only, option arm or a short term hybrid arm, do it now get an fixed rate mortgage or a long term hybrid arm.

May 19th, 2006 · Filed Under Keeping an Eye on the Market

Comment 

Mortgage Interest rates were mixed this week!

This week, Freddie Mac’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) averaged 6.58% (with an average of 0.5 points) for the week ending May 11, 2006. This average is slightly LOWER from last week; which was at 6.59%.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.22% for the same week (with an average of 0.5 points). This average is slightly HIGHER from last week when it averaged 6.21%.

One-year Treasury-indexed ARMs averaged 5.62% for the same week (with an average of 0.7 points). This average is LOWER from last week when the average was at 5.67%.

Frank Nothaft, Freddie Mac vice president and chief economist, explained “Less-than-expected job growth in April helped mortgage rates to level off this week. Even ARM rates were little affected by the Federal Reserve’s increase in the federal funds rate” “However, next week’s release of the April Consumer and Producer Price Indexes may lift mortgage rates higher if the figures show an acceleration in inflation.”

If you are thinking about refinancing those interest only, option arm or a short term hybrid arm, do it now get an fixed rate mortgage or a long term hybrid arm.

May 16th, 2006 · Filed Under Keeping an Eye on the Market

Comment 

Mortgage watch 5/5/2006

Provided by Mortgage Track
Mercury News
Average Rates

May 5th, 2006 · Filed Under Keeping an Eye on the Market

Comment 

Gradual rise in fixed rate mortgage rates continued this week!

This week, Freddie Mac’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) averaged 6.59% (with an average of 0.6 points) for the week ending May 4, 2006. This average is slightly HIGGER from last week; which was at 6.58%.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.21% for the same week (with an average of 0.7 points). This average remained UNCHANGED from last week when it averaged 6.21%.

One-year Treasury-indexed ARMs averaged 5.67% for the same week (with an average of 0.8 points). This average went slightly LOWER from last week when the average was at 5.68%.

Frank Nothaft, Freddie Mac vice president and chief economist, explained “Mortgage rates have drifted upward for the sixth week running, which is consistent with Freddie Mac’s economic forecast” “We expect that mortgage rates will continue to trend upward over the coming year, but that upward trend will be modest at best” “Meanwhile, with gradually rising rates, refinance activity can be expected to shift. Fewer families will be refinancing, but of those who are, a larger percentage will be drawing some equity out of their homes, many to pay off previously existing home equity loans and lines of credit as those loans become more expensive.”

Attention everyone with an interest only, option arm or a short term hybrid arm, don’t wait until interest rates creep up more, refinance for a fixed rate mortgage or a long term hybrid arm and take advantage NOW of the slow rise on interest rates.

May 5th, 2006 · Filed Under Keeping an Eye on the Market

Comment 

Mortgage watch 4/28/2006

Provided by Mortgage Track
Mercury News
Average Rates

April 28th, 2006 · Filed Under Keeping an Eye on the Market

Comment 

Long-Term mortgage rates rise for fifth straight week!

This week, Freddie Mac’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) averaged 6.58% (with an average of 0.5 points) for the week ending April 27, 2006. This average is UP from last week; which was at 6.53%.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.21% for the same week (with an average of 0.6 points). This average is UP from last week when it averaged 6.16%.

One-year Treasury-indexed ARMs averaged 5.68% for the same week (with an average of 0.7 points). This average went HIGHER from last week when the average was at 5.63%.

Frank Nothaft, Freddie Mac vice president and chief economist, explained “Indications of a stronger economy gave rise to an increase in mortgage rates this week” “Consumer confidence and existing home sales unexpectedly rose. Much of this strength is attributed to a health labor market, which translates into greater consumer spending. This should support an active housing market over the next few months” “We expect mortgage rates to gradually rise throughout the year. A stronger labor market, coupled with moderation in house price growth, means our outlook for overall housing conditions remains upbeat”

My advise to everyone with an interest only, option arm or a short term hybrid arm is to get rid of those loans and refinance for a fixed rate mortgage or a long term hybrid arm and take advantage of the slow rise on interest rates.

April 28th, 2006 · Filed Under Keeping an Eye on the Market

Comment 

Mortgage Rates keep RISING!

This week, Freddie Mac’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) averaged 6.49% (with an average of 0.6 points) for the week ending April 13, 2006. This average is HIGHER from last week; which was at 6.43%.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.13% for the same week (with an average of 0.7 points). This average is HIGHER from last week when it averaged 6.11%.

One-year Treasury-indexed ARMs averaged 5.61% for the same week (with an average of 0.8 points). This average is HIGHER from last week when the average was at 5.57%.

Frank Nothaft, Freddie Mac vice president and chief economist, explained “Mortgage rates continued to creep up following the unexpected drop in March’s unemployment rate. That drop indicated there may be some upward pressure on wages in the near future, which could lead to a rise in inflation,” “And the threat of a higher rate of inflation, as we all know, invariably leads to higher mortgage rates,” ”With all that said, Freddie Mac’s outlook for 30-year mortgage rates for 2006 continues to expect that rates will fluctuate somewhere between 6.25% and 6.75% over the course of the year.”

Get rid of those interest only or negative amortization loans NOW and refinance for a better loan and rate.

April 17th, 2006 · Filed Under Keeping an Eye on the Market

Comment 

Mortgage watch 4/14/2006

Provided by Mortgage Track
Mercury News
Average Rates

April 17th, 2006 · Filed Under Keeping an Eye on the Market

Comment 

Mortgage Rates went UP this week

This week, Freddie Mac’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) averaged 6.35% (with an average of 0.5 points) for the week ending March 30, 2006. This average is HIGHER from last week; which was at 6.32%.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.02% for the week ending March 30, 2006 (with an average of 0.6 points). This average is HIGHER from last week when it averaged 5.96%.

One-year Treasury-indexed ARMs averaged 5.51% this week (with an average of 0.8 points). This average is HIGHER from last week when the average was at 5.41%.

Frank Nothaft, Freddie Mac vice president and chief economist, explained “The Fed raised rates this week, as was expected, but the market was a little surprised at the Committee’s coments, which implied more tightening in the future” “That raised the expectation that inflation may be more of a threat that was previously thought, and that kind of thinking promotes upward pressure on mortgage rates like we saw across the board this week.”

My advice is that if you have an interest-only loan or an option arm, you should think about refinancing NOW and try to fix your rate.

April 1st, 2006 · Filed Under Keeping an Eye on the Market

Comment 

Older Posts →