Interest Rates Back Down

The 30-year rate average went to 5.81 percent on Friday, according to Bankrate.com's averages based on its survey of 4,000 banks in 40 states.

Zillow.com is a Zing

The new Zillow.com site seems interesting, but in the end doesn't seem any more unusual than any other site based on local property tax records data, which is sometimes inaccurate in itself. This site happens to combine with aerial photo technology so that you can see the exact location, and it gives you an estimate of value. But that doesn't necessarily sync with the current market value, so the viewer should be careful about making final conclusions without further investigation. An average or a median price for a zip code area does not give spccific value for a specific property, any more than the selling price for the last market sale is the same as today's market value.

Commercial/Multifamily Originations Set New Record in 2005 - 48% Higher than in 2004

Multifamily loans made up 36 percent of the total loans made in 2005. They increased by 44 percent over 2004. While single family home and condo sales slowed, commercial and multifamily loans in the 4th quarter of 2005 were the highest ever recorded in the MBA's quarterly survey.

Quick Info on Prices and Rates

Calif. median home price - Dec. 05: $548,430 (Source: C.A.R.)
Calif. affordability index - Nov. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Dec. 05:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)

Calif. lowest median home price by C.A.R. region Dec. 05:
High Desert $320,490 (Source: C.A.R.)

Mortgage rates - week ending 1/26:
30-yr. fixed: 6.12%; Fees/points: 0.5%
15-yr. fixed: 5.70%; Fees/points: 0.5%
1-yr. adjustable: 5.20%; Fees/points: 0.6%
(Source: Freddie Mac)

Buy Me Please!

This isn't 2003, but this chart is a good example of different market's selling times, and lately we've been in a lull where sellers might need to think about how much preparation might be necessary to compete for a buyer. In some markets, such as the last 2-3 years, sellers have been able to put minimum effort into curb appeal and get a fast offer. In any market, though, a buyer feels a lot more welcome when the seller puts some effort into their home's appearance and condition, and often when the buyer feels good, the transaction is even better. Think about how your house appears to someone else, and you'll probably come a lot closer to an easier negotiating process!

January 2006 Economic Outlook

The big question: Will home price appreciation continue? The answer at this article is yes, but slowing to around 7% as the 30-year fixed interest rate rises overall to about 6.4%. House price appreciation is seen as being driven by income, employment and population growth increases. The adjustable rate mortgage loan holders, though, may end up refinancing this year as those ARM rates do go up.

DQNews - Southern California Press Release

Buyers may be waiting for the price to drop, but local sales still indicate a 1-2% difference in selling vs. list price. The Southern California median home price was still $479,000, the same as November, but up 14% from December 2004. California Association of Realtors, meanwhile, still forecasts an overall increase in median price statewide for 2006, with a stronger increase in the inland areas. Still a good time with 30-year fixed mortgage rates hovering around 6% or less.

Rates in a Lull

Some buyers are taking advantage of this period, but many others are not. Mortgage interest rates fell for 5 consecutive weeks. While the difference may not seem like a lot, it is when multiplied out over time. If you're willing to pay even a .5 point, you can buy down your rate even more. Click on the link for more information.

Interest Rates Sill Lower

Despite rumors of one more rate increase by the Federal Reserve, long-term mortgage rates declined at the end of the week.

FHA Loan Limits Are Up

Effective January 1, the Federal Housing Administration (FHA) has just increased its highest loan limit to $362,790 in high cost areas nationwide. This is a $50,000 increase from last year's limit. FHA loans are usually available at lower interest rates than conventional loan rates, with easier lending guidelines to help first-time buyers. While extra paymentc called MPI (mortgage risk insurance) are tacked on that are not tax deductible, this is still very good news because it gives borrowers a lot more loan assistance in high markets that was not available before.