Sacramento Real Estate Views

Archive for the 'Sacramento Mortgage Information' Category

Mortgage Rates At ALL TIME LOW!

Rates At Lowest Level Of The Year, Again!

Rates bounce around so much and are so dependent on worldwide economic factors that it’s difficult to know where they will go in the micro picture.

In the macro picture, however, it’s a little easier to say that they should kind of go this way or that way.

Economists across the board are saying that in the short term, this year in fact,that interest rates will be going up due to the Federal Reserve ceasing their purchase of mortgage backed securities.

As a result, rates are expected to go up to 5.5% to maybe even 6% by the end of the year.

Will that happen?  Who knows?  What we do know is that The Grand Pooba, Grandpa Frank Nothaft of Freddie Mac has come out with his weekly assessment of the nationwide mortgage market.  (Clearly, the force is strong with this one!)

Grandpa Frank’s Pearls of Wisdom

Here are this weeks comments from Frank Nothaft, VP of something or other at Freddie Mac:

1)  Long term interest rates have declined for the 5th straight week.

2)  The National Association of Realtors is citing that median home prices are recovering in a more local sense this quarter than in the last quarter. (can it happen otherwise?)

3)  91 of 152 metro areas are experiencing positive growth. (is there any other kind of growth?)

4)  All is rosy….for now.

The average fixed rate mortgage in the west is 4.91% and about .09 for points and fees. Not bad!  Thanks again to the Grand Pooba for his pearls of wisdom, we appreciate it!

What To Watch For

On a more serious note, keep an eye on the following factors when assessing whether this is a good time to buy a home:

1)  The first time homebuyer tax credit on the federal level is gone.  California has put in place it’s own tax credit but that won’t last long.

2)  The Federal Reserve is getting out of purchasing mortgage backed securities.  Many believe that this will cause interest rates to rise to 5.5% or up to even 6% (perish the thought!) by the end of the year.

3) HUD, who essentially absorbed the “sub prime’” mortgage market and accounts for 30% of purchase mortgages, is being forced to cut back their involvement in the market due to losses.

All this could equate to prices continuing to drop or at best hold steady. If that happens, buying activity will fall off unless other factors occur to prop up the housing market, yet again, and we could see home prices continue to fall as demand weakens.

Geez I actually sound like I know what I’m talking about there…it’s all a ruse!

Anyway, that’s the mortgage post, hope you enjoyed it!

Thanks for visiting!

Tags: home loan interest rates

Home Loan Interest Rates Down

Mixed Economic News Keeps Rates At Historic Lows

I’ve been in the real estate industry for 8 years and have been spoiled the entire time with interest rates that have never gone above about 6.5%.

Historically, I know, as with this housing downturn nationwide, that it can’t last.  The “good” market didn’t last, low interest rates won’t last either.

Currently, low rates are the one bright spot in the entire picture.  First time homebuyers or people new to home buying just don’t appreciate how low rates are by historical standards.

Since 2001, the average weekly interest rate on a 30 year fixed rate mortgage has been at or below 6.97%.  That is an incredible run of low interest rates.

From 1975 to 2001, only once, in 1998, did the average weekly interest rate for at 30 year fixed rate mortgage dip below 7%, the high being in 1981 at 16.63%!

Interest rates, from a historical perspective, are very low.  Taking advantage of them will pay off in the long term.

Freddie Mac Drivel For The Week!

At least the information is mixed this week instead of all bad!  We’ve got that to be thankful for.  It looks like the recovery is firmly established.  For now.  LOL

Frank Nothaft, the Big Wig, Head Economic Honcho from Freddie Mac said this week:

1.  Mortgage rates eased this week from mixed economic data.  The 30 year fixed rate averaging about 4.91%.

2.  Pending home sales fell 7.6% which was unexpected.  (Surprise!)

3.  Job losses were low this week in comparison to numbers over the last year shedding only 36,000 jobs for the week, fewer than expected.

4.  The unemployment numbers were stable at 9.7% nationwide.  (it’s higher here in the Sacramento region)

Overall, not a bad report.  These are recovery numbers.  How low can they go!

Back At The Ranch…

The following quote is from one of my favorite local mortgage brokers.  Pat has stayed with me even when I failed to publish the weekly mortgage post.  Thank you for your diligence Pat.

If you’re looking for a mortgage broker, she is one of the best in the business.  Give her a call.

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

“We’re holding steady this week at 5% on the 30yr fixed rate mortgage as of this morning.  As you know, rates change constantly; sometimes more than once in a day!  But the real urgency is that in order to take advantage of the Federal first time homebuyer $8,000 tax credit, you must be in contract to buy a home by April 30^th !  “First time homebuyer” is anyone who hasn’t owned a home for the past three years.  If that’s you, don’t wait!  Contact me at (916) 212-9451 or pat@patmurphyloans.com, because I would love to help you finance your dreams!

Free Advice – Honest Loans

Thanks Pat!  Looking for a home loan resource?  Fill out the form below and I’ll have one of my referrals call you within 24 hours.

Thanks for visiting!

Home Loan Information Request

1. Your Name(required)
2. Email (email required)
3. Phone(required)

 

cforms contact form by delicious:days

Tags: home loans sacramento, sacramento mortgage interest rates

Mortgage Guidelines Are Getting Tougher!

This Is MUST KNOW INFO!

This morning while I was working away, a fellow Realtor, Cera Hinkey sent me some new mortgage guidelines that will affect virtually EVERYONE attempting to get a mortgage in today’s tough, tough, tough mortgage environment.

<—– = Mortgage underwriters!

Brace yourself.  This is UGLY!

NEW UNDERWRITING UPDATES

1. All borrowers’ birth certificates will be required with pictures taken in the hospital with medical staff. Birth certificate with a live home delivery will not be eligible for first time home buyers.

2. Marriage certificate with bridal dress will be required if both husband and wife are required to qualify for the loan.

3. GFE (aka good faith estimates) will require blood sampling from a recognized institution within three days of application.  Signature is optional!

4. DNA test will be performed at closing to avoid any non-arms length transactions. Loan funding will be contingent upon satisfactory receipt of DNA results.

5. Copy of Pay stubs and W2 will only be acceptable ONLY through IRS and ONLY with a wax-sealed envelope mailed directly to the lender.

6. Seven witnesses from the neighborhood will be required as proof of primary residence.  Their birth certificates will be required in triplicate.

7. All appraisers will be required to use masks and ear plugs at the time of inspection to avoid any personal influence by the borrower or broker for the appraised value. Phony mustache and glasses are optional.

8. In order to correctly calculate DTI (aka debt to income) and true housing ratio a list of grocery items, monthly usage and brand names will be required with receipts and projected 12 month consumption chart.

9. Closing will not occur without loan officer presence at settlement and the loan officer’s picture will be taken at the closing in a mug shot format with loan number. Picture should meet standard guideline of 2 X 2 inch in color format with one facing and one side view.

10. Loan officer picture will be attached to the Deed and loan documents and will be made available for general public and security agencies in case borrower defaults on the loan.

While this is meant to be funny, believe me, this is what it feels like to get a mortgage done these days!

Thanks for visiting!

Tags: sacramento home loans

To Flip or Not To Flip…..Is There A Question?

They May Have Eased The Flip Rule….but

I’ve got a client right now, a first time home buyer, and we’re in escrow on a home that’s perfect for him in Antelope. (Antelope is an area of north east Sacramento)  This home had been foreclosed on and then purchased by an investment group who then put the property right back on the market.

For those not familiar with real estate terms, this is called “flipping” a home.  You buy it at a cheaper price and sell it for what the market in the area of the home will bear.  This kind of transaction is an investors dream as the turn around can be quick and profits fair.

Until recently, there were knee jerk rules in place to “protect” buyers from unscrupulous investors making buying a home and attempting to flip it.  A buyer used to have to wait 90 before making a financed offer on a home that had been recently flipped.

The rule just changed about 30 days ago allowing financed buyers purchase “flipped” homes as soon as they come on the market rather than having to wait 90 before making an offer.

Do I Always Have To Be The First To Test The Waters?

Mortgage rules are in a constant state of flux these days, much more than usual which for the most part are only succeeding in making the process harder.

When buying a flipped home, the lender and title company have been asking for:

1) a second appraisal.

2) documentation from the seller regarding every improvement.

3) documentation regarding what was paid for the property.

4) the home inspection.

5) additional documentation from the buyer ensuring an arms length transaction. (arms length = buyer and seller don’t know each other)

It seems like with every rule change that comes down in the mortgage industry, I’m the first transaction that lender has seen.  We’re experiencing delays as the process isn’t seamless yet.  Although the 90 day restriction had been lifted by HUD, there were only two lenders that would take the file.

If you’re buying a home that has been recently flipped, make sure your mortgage broker is up to date with the new flipping rules, mine is and it’s going as smoothly as humanly possible.

Thanks for visiting!

Tags: home for sale in sacramento

New FHA Guidelines Make It Harder To Qualify

Changes Could Affect Values

The new FHA guidelines, along with the expiration of the first time home buyer tax credit, could adversely effect home values in the Sacramento real estate market.

And let’s not forget the regions 15% unemployment.  This is not a good combination for our region.

Just when we thought it was safe to go back into escrow.

With guidelines changing and loans for first time home buyers, or anyone for that matter, getting tougher to qualify for, a sales decline and resulting inventory increase could depress home values in the region again.

The word on the street is that more homes will be coming on the market soon.  A quick inventory check doesn’t show that there have been any significant increases yet.

Is that hissing sound the air being let out of the nice little recovery we had going?  Or just the ringing in my ears that’s been there since 2007?

Changes In FHA Policy

Read the rest of this entry »

Tags: homes for sale sacramento roseville rocklin

Interest Rates Decline

Didn’t I Say They Were Going Up?

Oh for heaven’s sake.  In one of my most recent mortgage rate updates, I cited industry sources who plainly said that mortgage rates were on the way up and that the low rates we’ve been experiencing, due to a “robustly” growing economy would soon be over 6%.

Those damn pundits, as usual, have no clue!  Why do I listen to them?  You shouldn’t either.  Anyone who tells you they know what’s going on should be avoided.  Realtors especially. (did I say that out loud?)

Anyway..rates have gone back down after rattling around a bit higher since the beginning of December.  The outlook?  It’s clear I don’t know!  So let’s go here..

If the economy improves and the indicators that are responsible for interest rates going up are there…guess what?  Interest rates will go up.  If the economy declines and the indicators that are responsible for interest rates going down are there…guess what?  Interest rates will go down.

That said, it doesn’t always work that way due to government intervention so WHO KNOWS?  At this point and all points along the way, anything can happen.

From The Horse’s Mouth

Frank Nothaft, VP and head economic honcho at FreddieMac.com had this commentary to add:

1)  Interest rates for fixed rate mortgages eased this week. (Insightful!)

2)  ARM’s were mixed. (?)

3)  Rates are low, refinancing is up.  Over the last 3 months, 75% of  mortgage activity has been refinancing. (Interesting factoid)

4)  The FED reported positive news in housing and the overall state of the economy on January 13th.  Economic activity improved in 10 or the 12 districts measured.  Home sales in the lower price ranges has increased. (We’re seeing that here..still)

Well once again Frank, riveting!

Rates were 5.06% for a conventional 30 year fixed rate mortgage.  Last time this year they were around 4.96%.

Local Lender Quotes

This week our local lenders “lend” their insight to make this post what it is. (no pun intended!)

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

The 30 yr fixed conventional rate has remained steady at 5.125% as of this morning.  But as we know, rates do change constantly!

Want to know more about your choices in the housing market?  Do you qualify?  For how much?  Should you rent or own?  Is credit is a problem?  If so, I can help review your situation and suggest ways to improve your score.  Need help sorting through it all?

Contact me at (916) 212-9451 or pat@patmurphyloans.com.

Free Advice – Honest Loans – Pat Murphy!

Stephen Hart, Master’s Team Mortgage, 916-719-4295, StevenHart@helloworld.com

“Welcome to the wild roller coaster of the mortgage industry. Monday began with prices getting worse for interest rates, Tuesday saw price improvements, Wednesday we lost 31 of those points and today we start by gaining 12 points back.

This kind of market volatility is the biggest reason to work with a trusted mortgage professional who can keep you informed of what is happening with mortgage rates. With all of this volatility, mortgage rates are still in the low to mid 5′s for conventional and FHA loans under $417,000. Conventional and FHA loans above $417,000 up to $580,000 are in the upper 5′s. Homebuyer tax credits are still available, however, you must be in contract no later than April 30, 2010.

This just in, the Federal Government has put 15 lenders on a watch list for price gouging through their AMC’s (Appraisal Management Company). Go figure, a well intentioned regulation that has been poorly thought out and implemented. We will see how this one progresses.

Questions, comments, what does all of this mean to you? Call me, Stephen Hart, at 916-988-5858, I look forward to guiding you through the maze of obtaining a home loan. Make today an an amazing day!”

There you have it folks, insight from YOUR local lending resources.  Please let us know if you have any questions and always remember, mortgage rate updates are always out dated the moment they are posted! Rates can change in every moment.

For current rates or home loan questions, please fill out the form below and we’ll get back to you today.

Thanks for visiting!

Home Loan Information Request

1. Your Name(required)
2. Email (email required)
3. Phone(required)

 

cforms contact form by delicious:days

Tags: mortgage rates sacramento

Mortgage Interest Rates on the Rise

Rates Increase Over the Holidays – Merry Freakin Christmas!

Santa left a little unintended coal in our collective mortgage stockings this holiday season in the form of increased mortgage interest rates.

While the increase isn’t all that much honestly, I believe this will be a sign that could point to higher interest rates in the future.  Our low “candy cane” rates may be coming to an end sooner than later.

Rates as of this posting, according to MortgageDailyNews.com, are at 5.2% for a 30 year fixed rate mortgage, down from 5.33% last week.  Certainly higher than the 4.75% averages we were seeing prior to the holidays.

Here’s the kicker with the current rates;

To qualify for the current rate at between 5% and 5.25% you’ve got to have credit scores at or above 740.

That’s the news that usually left out of most lender advertising which would be kind of nice to know upfront, wouldn’t you say?

From FreddieMac.com

The following commentary is the most recent from Frank Nothaft, VP of this and that @ FreddieMac.com:

1)  Although rates have gone up, we’re still in one of the most affordable housing markets in history.

2)  At today’s rates compared to the rates in 2000, you’ll pay 1/3 less for your mortgage than you did in 2000.

3)  The housing market is improving nationally.

4)  Housing prices have gone up for the 5th straight month.  11 cities have experienced “positive growth”.

See the context of Frank the VP’s notes here.

That’s the official word from the “suits”, and what follows is a quote from one of our trusted local lending resources.

Local Lender Quotes

My goal for 2010, at least one of them, is to include several more lenders to this weekly article.  Wish me luck!

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

“The 30 yr fixed conventional rate has creeped up to 5.25% this week.  It is hard to say whether this is a function of a perceived economic improvement or just because it’s the end of the month.

But the good news is that the Fed rate (the rate banks pay to borrow from the Federal Reserve) continues to remain low, and is expected to remain there until at least late this spring!  So, while the rate is creeping, it is still a GREAT rate historically!

I am happy to answer your questions.  Call me any time to ask about anything related to the market or loans 916-212-9451 or email pat@patmurphyloans.com.”

Thanks for visiting!

Tags: mortgage rates sacramento