Now is the time!

Hope for 2015 Housing Boost from Year-end Jobs Growth

As is the case during the holiday season, home loan application volume slowed down in the last quarter of 2014. Figures reported in mid-December by the Mortgage Bankers Association were down 11.9 percent compared to the same time one year ago. Decreases in total home loan purchase applications were, however, met with net gains from home loan refinances, due to lower interest rates.

Homebuilders were also recalibrating their sales strategies going into next year. According to an early December CNBC report, many homebuilders this season are not raising prices, but are instead seeing more interest from wealthier buyers looking at larger homes. The report also stated that as of now, luxury homebuilders do not foresee raising prices to improve their margins, while others are benefitting from strategic geographic and product changes.

All in all, homebuilder sentiment remained in positive territory in December, staying at 57 on the National Association of Home Builders/Wells Fargo Housing Market Index (NAHB, HMI); anything above 50 is considered positive. Said NAHB Chief Economist David Crowe, "As we head into 2015, the housing market should continue to recover at a steady, gradual pace."

Good Job News to End 2014

A promising November Jobs Report portends economic growth for early 2015, which many hope will trickle to housing. According to the Bureau of Labor Statistics, nonfarm payrolls grew by 321,000, crushing the forecasted figure of 230,000. The unemployment rate was unchanged at 5.8 percent. As noted in Business Insider, "This was the 10th straight month that the U.S. Economy saw payrolls grow by more than 200,000, the longest streak since 1995."

What's in Store for 2015

A December Financial Times consumer survey predicted the following for housing in early 2015: people will continue to try to sell existing homes. As the supply of existing homes for sale goes up, so does competition from new homes and homebuilders. Housing demand will come from young people getting jobs and forming households, but whether they opt for rentals and saving for a down payment rather than buying homes right away remains to be seen. Check back in April's REALinsight for your next quarterly Market Watch.

Sources: CNBC, Financial Times

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/

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.

Property for Exchange Everywhere!

The choice of a tax-deferred exchange affords the seller/taxpayer an exceptional opportunity upon selling the property. A tax deferred exchange can best be defined as a sale without immediate tax implications with a window to replace the property with like-kind property and reduce the basis of the replacement property by the deferred gain, thereby deferring the tax to a future date.

Susan's rates for November 2010

Conforming 30 Year Fixed (under $417,000) is at 4.25%, High Balance $417,000 to $729,750) is at 4.375% and Jumbo (over $729,750) is at 5.5%.

Conforming 15 Year Fixed is at 3.5%, High Balance at 3.75% and Jumbo is at 5.125%.

These rates are off from the lows of 3.875% but still very low.

Rates for October 2010

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!

Trade AnythingAnywhere Sept 2010

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