Sacramento Real Estate Views

Mortgage Rates Decline in Sacramento

Mortgage Applications Up 17%

The average rate for a 30 year, fixed rate mortgage declined this week from 5.08% to 5.07% (WooHoo!)  While not a dramatic decline, a tenth of a point is a tenth of a point!

Rates one year ago at this time were 5.93%.  The difference between purchasing a $200,000 right now versus last year is quite nice.

At 5.93%, a $200,000 home last year would’ve cost $1382.44 per month.  Now, the same home would cost $1,285.33.

This includes loan principal, interest, taxes and insurance. (Disclaimer: this is an estimate) That’s roughly $97 per month less and could purchase a months worth of latte’s from Starbucks for even the worst addict!

Incidentally, a $200,000 home is pretty nice in Sacramento right now.  I have an investor who paid $132,000 for a home and rents it out for $1300, more than it would cost so own right now.  Purchasing is cheaper than renting in many cases.

ATTENTION: If you’re a first time home buyer, as of today, you have 80 days to close on a home before the $8000 tax credit expires.  See the countdown widget in the left sidebar to see how much time is left!

Economic Recovery Appears Close

Frank Nothaft, VP and Chief Economist said this week:

1)  Mortgage rates remained historically low over the past two weeks.

2)  Mortgage applications are up 17%, 23% jump in refinance demand.

3)  Jobs and the Federal Reserve’s latest report suggest the economy may be on the road to recovery.

4)  Most areas are reporting that housing prices are firming and remaining steady.

Local Lender Quotes

Pat Murphy, Guild Mortgage, 916-212-9451, pat@patmurphyloans.com

“Rates for a 30 yr conventional loan have been hovering around 5% all week, with buy downs still available to as low as 4.5%.

If you have been hesitating, now is the time to call and find out your possibilities!

Remember, rates change constantly, so it’s a good idea to make a plan for your future today!”

The clock is ticking on you first time home buyers to take advantage of the $8K tax credit.

Need a lender?  Give Pat a call.  She can get you pre-qualified quickly and we can get you out there looking as quickly as possible.

Thanks for visiting!

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Tags: mortgage rates sacramento

This entry was posted on Thursday, September 10th, 2009 at 4:39 pm and is filed under Mortgage Information. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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