Mortgage rates have changed again this week. The market seems to swing according to the media focus. With the start of the Olympics, we may be in for a bit of a reprieve. However, according to a CNN article by Les Christie, borrowers may benefit by locking in their interest rate (pre closing). Several experts cited in the article expect interest rates to go up in the next six weeks and forecast...
Friday's mortgage rates are up between 1/4 percent (jumbo 5/1 Year ARM) and 3/4 percent (jumbo 30 year fixed) compared to my last Mortgage Update on June 8, 2008. As you can see from the chart above, today's borrower of a 30 year fixed loan will pay 6.5% conforming and 7.75% jumbo. Attention buyers: The time is right to get off the fence and purchase your new home now. Rates are not forcasted to...
"How is my credit score determined?" ask buyers of Palos Verdes real estate. The chart above details the scoring system used by Fair Isaac, the creator of the FICO score, one of the most widey used credit scoring methods employed by most banks and lenders in the United States. What surprised me is that Payment History (35%) is twice as important as Length of Credit History (15%) . Making even a...
Where exactly is the real estate market going? Owners of Palos Verdes real estate as well homeowners across the country would love to know the answer. In addition to the "in your face" reporting about real estate (which can be pro or con depending on the reporter and which forecast he is looking at) there are other subtle indicators. Recently Newsweek had an article buried on page 61 entitled...
Friday's mortgage rates are up slightly compared to our last Morgage Update two weeks ago. At that time a 30 year fixed rate mortgage was 5.75% conforming and 6.75% jumbo. As you can see from the chart above, today a borrower will pay 6.125% conforming and 6.875% jumbo. Friday's mortgage rates for Palos Verdes homes are provided by Jim Kurata, Peninsula Mortgage/Chase...
The self-fulfilling prophecies are right again according to the LA Times article "At the luxury end, home prices are falling." The upper end of the market is feeling some pain. It appears misery loves company. Statistics are in for the month April and indicate some exclusive neighborhoods show decreased sales prices compared to April 2007. Palos Verdes real estate had mixed reviews. Palos...
Interest rates on home loans are down one full percentage point in some categories from April 17, 2008, for example 5.5% for a 30 year fixed loan due in 10 years. Tuesdays, I attend our Office Meeting and then go on to the Palos Verdes Real Estate Broker's Tour. Better loan rates were the pleasant surprise at our Office Meeting. Today's Broker's Tour had 24 properties to view in approximately two...
Buyers may need 5% more down payment to buy homes that are designated to be in a declining market. By the way, the entire state of California (including real estate in Palos Verdes) is considered a "soft market" by Freddie Mac and Fannie Mae. Kenneth R. Harney of the Washington Post wrote an excellent article on April 26, 2008, entitled "Declining Markets and Self-Fulfilling Prophecies(which was...
"Home prices staying afloat at the beach" is today's headline in theLos Angeles Times Business Section. They researched 18 zip codes "excluding such spend-happy areas as Malibu, Palos Verdes and Newport Beach" inferring that real estate in those 3 cities are doing even better. Kudos to the LA Times for writing a balanced article with information that is specific to our South Bay area. We are...