Recent Posts
ArchiveCommon Tags
Conforming Mortgage Rates Continue To Fall In CoronaMay 11th, 2012 | corona home loans, Economic Outlook, Mortgage Rates, Conforming Mortgage Rates Continue To Fall In Corona Conforming mortgage rates continue to fall in Corona and throughout the nation! For the second straight week, the 30-year fixed rate mortgage fell to a new, all-time low nationwide. According to Freddie Mac’s weekly mortgage rate survey, the average 30-year fixed rate mortgage rate dropped one basis point to 3.83% this week for borrowers willing to pay 0.7 discount points plus a full set of closing costs. The 15-year fixed rate mortgage also set a mortgage rate record, registering 3.05% with an accompanying 0.7 discount point plus closing costs. Discount points are a one-time, up-front closing cost, based on the loan size. 0.7 discount points is equal to 0.7% of the borrowed amount. A home buyer in Corona opening a $200,000 mortgage and paying 0.7 discount points, therefore, would be subject to a one-time $1,400 fee paid at closing.
Falling mortgage rates are nothing new throughout Southern California. Since peaking in February 2011, mortgage rates of all types have been in steady decline. The 30-year fixed rate mortgage has shed 122 basis points since that date, falling from 5.05%; the 15-year fixed rate mortgage has shed 124 basis points, falling from 4.29%.
Low rates also help existing homeowners to lower monthly mortgage payments. For example, as compared to mortgage rates just 15 months ago, homeowners refinancing into today’s 30-year fixed rate mortgage stand to save 13.4 percent on their respective mortgage payments. A comparison :
A homeowner with a $300,000 mortgage in February 2011, with a 30-year fixed rate mortgage rate, would save $2,600 annually with a refinance to this week’s low rates. Even accounting for discount points and closing costs, the “break-even point” on savings like that comes relatively quickly. Mortgage rates can’t be predicted so there’s no guarantee of low rates forever. If today’s rates meet your budget, consider locking something in. Contact me to discuss refinancing option! Until next time SoCal…
The Economic Recovery Continues NationwideMay 11th, 2012 | Economic Outlook, The Economic Recovery Continues Nationwide The economic recovery continues nationwide, but the recovery’s an uneven one. Some metropolitan areas are faring very well this year, posting measurable gains in both employment and housing. Other metropolitan areas, by contrast, are struggling. To help identify those markets in which growth is occurring, the National Association of Homebuilders created the Improving Market Index, a metric analyzing three separate, independently collected data series “indicative of improving economic health”. The IMI’s three collected data series are :
A metropolitan area is considered to be “improving” if all three indicators show growth at least six months after the respective area’s most recent trough, or “bottoming out”. In May, there are exactly 100 U.S. markets that qualify for the NAHB’s Improving Market Index, down from 101 last month but higher by more than 800% from the reading in September 2011, the index’s inaugural release. 17 areas were added to the Improving Market Index list this month including Phoenix, Arizona; Ann Arbor, Michigan; and Bend, Oregon. 18 areas were removed from the May IMI. 83 metropolitan areas remained from April. There is little actionable information in the Improving Markets Index but the report does a good job of highlighting how “real estate markets” can’t be summarized on a national level and remain relevant to everyday home buyers and sellers across California and nationwide. For example, Fort Collins, Colorado is listed as an Improving Market. However, Greeley, Colorado — located just 30 miles away — was just downgraded from the same list. Home values and economies vary by region, by state, by city, by neighborhood, and even by street. The complete Improving Markets Index can be viewed at the NAHB website, but for the best read of what’s happening in your neighborhood, talk to a local real estate agent. Until next time SoCal...
Projected Mortgage Rates & Home SalesJanuary 18th, 2012 | Mortgage Rates, Economic Outlook, Projected Mortgage Rates & Home Sales Happy Wednesday all..... Today Freddie Mac released its U.S. Economic and Housing Market Outlook for January showing that while the economy is undoubtedly in a better place than the same time a year ago, a speedy recovery still seems unlikely this year.
Highlights Noted:
Click here to view the complete January 2012 U.S. Economic and Housing Market Outlook [PDF]. Freddie Mac compiles data on major economic and housing and mortgage market indicators and offers forecasts based on those indicators. According to Frank Nothaft, Freddie Mac vice president and chief economist, "With the new year comes a sense of cautious optimism. There are some positive signs in the job market and consumer confidence; housing is starting to raise hopes for continued gradual economic recovery. But the economy still is giving some mixed messages." According to the Bureau of Labor Statistics, California has a seasonally adjusted 11.3% unemployment rate. Bottom line: Mortgage rates are projected to remain low and home sales are expected to grow for the time being! Contact me for a custom rate quote! Make it a great day!
|
||||
|
