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Mortgage Rates stabilize

Mortgage Rates stabilize this week - The February 22, 2018 Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average was 4.40%, up slightly from last week’s 4.38%. The 15 year fixed was 3.85%, up slightly from 3.84% last week. The 5-year ARM was 3.65%, slightly up from 3.63% last week.

Existing home sales nationwide decline 3.2% in January - The National Association of Realtors reported that total existing home sales dropped 3.2% in January from December's home sales rate. The median price paid for a home in January  was 5.8% higher than January 2017, the 71st straight month of year over year increases. The number of homes for sale represented a 3.4 month supply,down from 3.6 months last January. Existing home inventory in January was  down 9.5% from January 2017.  Extremely tight inventory has caused prices to increase and has begun to cause fewer sales. 



Stock markets drop over 10% in two weeks - 


Mortgage Rates slightly higher

Mortgage Rates slightly higher - The December 7, 2017 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 3.94%, up from 3.90% last week.  The 15-year fixed was 3.36%,  up  from 3.30% last week. The 5-year ARM was 3.35%,  up from last week’s 3.32%. 


Confirming and FHA loan limits increase -  The confirming loan limit will increase from $424,100 to $453,100. The conforming high balance will go from  636,150 to $679,650 in 2018. The FHA loan limit will also rise to $679,650. Both conforming and FHA limits increase for 2,3 and 4 unit dwellings. 


Real Estate Organizations oppose both the senate and house tax plans

Real Estate Organizations oppose both the senate and house tax plans  -  According to The National Association of Realtors, The California Association of Realtors, state's Realtor associations, The National Association of Home Builders and other real estate groups the proposed bills will actually increase taxes for middle class homeowners. Real estate groups oppose the plan because it  cuts the mortgage interest deduction in half from the interest paid on  a maximum of a $1,000,000 loan to the interest paid on a maximum of a $500,000 loan. It also eliminates deductions of state and local taxes. This would include property tax. The house bill would allow a maximum of $10,000 deducted a year in property tax, while the senate bill would allow no deduction for property tax. State and local taxes, which include property taxes, have been deductible since congress passed a federal income tax in 1909, which was Implement in 1913. This is a very controversial portion of tax reform. Neither plan has passed. It is  possible that these changes may not be in the final bill. 


California home sales and prices continue to rise

California home sales and prices continue to rise in August - The California Association of Realtors released its August Sales and Price Report. Despite tight inventory existing, single family home sales totaled 427,630 in August on a seasonally adjusted annualized rate. That represented a 1.5% increase month over month from July and a 1.3% increase from last August.  The Los Angeles region registered a 4.4% gain in the number of sales year over year.  The median price paid for a home in California was $565,330, up 2.9% from July and 7.2% from August 2016.  C.A.R.'s Unsold Inventory Index fell to a 2.9-month supply of housing in August, down from 3.2 months in July, as there were too few new listings to keep up with strong sales growth. 


U.S. Existing home sales slightly lower in August – Existing-home sales data released by The National Association of Realtors showed that existing-home sales dropped 1.7% on a seasonally adjusted annual rate in August from July’s sales levels, as tight inventory has affected home sales.  For the year the number of homes existing-homes sold on a seasonally adjusted annual rate in August was 0.2% above last August’s sales pace. Prices continue to rise nationally.  The median price aid for a home in August was 5.6% higher than one year ago.  Housing inventory continued to decline. The number of homes for sale declined 6.5% from August 2016. The 27thstraight month of year over year declines in inventory levels. The unsold inventory index dropped to a 4.2 month supply, down from 4.5 months one year ago.