Fast Facts from the Calif Assoc of REALTORS
Calif. highest median home price by C.A.R. region August 09: Santa Barbara So. Coast $828,750 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region August 09: High Desert $111,770 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index – Second Quarter 2009: 67 percent (Source: C.A.R.)
Mortgage rates – week ending 10/15/09 30-yr. fixed: 4.92% Fees/points: 0.7% 15-yr. fixed: 4.37% Fees/points: 0.7% 1-yr. adjustable: 4.60% Fees/points: 0.5% (Source: Freddie Mac)
Cambria Named One of America’s Prettiest Towns
Forbes Traveler came out with a “American’s Prettiest Towns” list and Cambria is on it. This is what they say about Cambria…
“This Central California coastal town is situated near Hearst Castle, just south of Big Sur. Designer Erin Anderson says Cambria “is truly a small town, complete with general store, antique shopping, and shops featuring local artisans.” Moonstone Beach, she adds, is a “great place to view migrating whales, sea otters, and elephant seals.”"
Two other California cities made their list- Crescent City and Monterey.
You can view a slide show of all the towns here.
I Told You So! :)
If you’re interested in our newest Premier listing in Nipomo (www.645sandydale.com), now is the time. As I blogged about yesterday, I thought this listing won’t be on the market that long and now I’m sure of it. We have multiple offers on the table so if you want to be considered, you’ll need to submit your offer ASAP!
Rate Update and Jumbo Mortgages
Strong economic data and bank earnings reports led mortgage rates slightly higher and the Dow Jones Industrial Average above the 10,000 level for the first time since October 2008. Retail Sales declined 1.5%, but less than forecast after the cash-for-clunkers program expired in September. Sales excluding automobiles actually climbed 0.5%. Jobless Claims unexpectedly fall last week to their lowest level since January. Industrial Production improved, and the Empire State manufacturing index increased to the highest level since May 2004. JP Morgan Chase and Goldman Sachs reported 3rd quarter profits of $3.5 billion and $3 billion respectively. Citigroup posted a $101 million profit. And Bank of America announced they lost $1 billion, their second quarterly loss in less than a year. Currently the 30 Year Fixed sits at 4.625% (4.804% APR) and the 15 Year Fixed is at 4.250% (4.557% APR). This week, the Producer Pride Index inflation data and housing data will be most influential on mortgage rates.
A jumbo loan is any residential mortgage that conforms to Fannie Mae or Freddie Mac underwriting guidelines, but exceeds the conforming loan limit of $417,000. The 2008 economic stimulus package created a new jumbo-conforming program that was adopted by both Fannie and Freddie, allowing the agencies to purchase loan amounts up to the lesser of $729,750 or 125% of the median home value for a particular region (the jumbo-conforming loan limit for SLO county is $687,500). Since Fannie and Freddie only purchase loans with balances up to the conforming limits, and now jumbo-conforming limits, other investors, such as banks and insurance companies step in to create a market.
The “private label” residential mortgage-backed securities market has declined to a mere 20% of its volume from just 3 years ago. Only about 6% of loans are jumbo. And of those, half are jumbo-conforming from $417,001 up to $729,750, and the other half are $729,751 and higher. It appears the majority of jumbo loans are being put into banks’ portfolios. However, jumbo underwriting criteria for both credit and collateral continue to be very strict, with loan-to-value ratios not exceeding 70% or 75%, and even less for higher loan amounts, debt-to-income ratios below 40% or 45%, and significantly larger asset requirements.
Current jumbo rates are also not helping to revive this battered market. Rates on jumbo mortgages tend to run slightly higher than on a conforming loan due to the slightly higher risk to the investor. The typical spread or difference between conforming and jumbo interest rates tends to fluctuate between 0.250% and 0.500%. Spreads today are in excess of 1.250%.
The news is not all bad for high balance loans! Some relief is being offered through the jumbo-conforming loan program offered by Fannie and Freddie, with rates reflecting the more typical spreads. Time is running out, however, as the jumbo-conforming loan limits are temporary and set to expire on December 31st.
Central Coast Lending, Inc.
(805) 771-9870
info@centralcoastlending.com
Just Listed in Nipomo!
This is a GREAT house. 5 Bedrooms, 3450 sq ft, on 1.2 acres. It has an extra large kitchen and is perfect for entertaining. Even has a 1500 sq ft workshed/barn.
We don’t expect this home to last long on the market so if you’ve been looking and haven’t found anything you like, this may be the one.
Check out the photos and video here:
Open House today (Sunday) from 1-3.
17th Annual Wiggle Waggle Walk For Woods
Woods Humane Society proudly presents their 17th Annual Wiggle Waggle Walk For Woods, which will take place Saturday, October 24th from 9AM to 2PM at Laguna Lake Park in San Luis Obispo. Event registration and pledge fundraising is available online at www.firstgiving.com/whs. You can also pick up your registration/pledge card at Woods Humane Society or any local Lemos Feed and Pet Supply.
The homeless dogs and cats of Woods Humane Society invite you and your dog to join them at the event for a fun, family, 1 mile walk and pet fair! Pledge earners compete for top level prizes and you may compete as an individual or start a walking team with your business, friends, or family. Walking Teams are also competing for the prestigious Woods Cup Award.
All of the money generated through Wiggle Waggle goes directly towards the health and care of the hundreds of homeless animals temporarily entrusted to us at Woods Humane Society. You can get involved and help us raise awareness about homeless companion animals in San Luis Obispo County by joining us for a day of fun K9 antics! Over the years, Wiggle Waggle has grown into one of the largest K9 related events on the central coast and the success of our event is completely dependant on your support.
Foothill McDonald’s Doors Close
The McDonald’s on Foothill in SLO closed on Thursday. I have fond memories of that place since I was a shift manager there when going to Cal Poly back in 1979-1980. For whatever reason, McD’s was the place for co-eds to go streaking through on Friday and Saturday nights.
Pretty basic menu back then. Hamburgers, french fries, and fillet-o-fish.
A bunch of us would close on weekend nights and then walk over to the 24 hour Laundromat next to William Brothers and play the Astroid machine. Life wasn’t too complex back in those days….
Our List of MLS LIsting Searches We Offer
I’ve put all our MLS Listing Searches we offer on a page and included a description of each.
New Listing Coming This Week
We have a 5 bedroom Nipomo home coming on the market at the end of this week. It’s a gorgeous home that is perfect for entertaining. Over 3500 sq feet with a 1500 sq foot barn/workshop on over an acre. Price will probably be under $700K. Stay tuned!!
No Shadow Inventory of REOs
According to data analysis by Foreclosure Radar, they now believe that the banks are NOT holding back an inventory of REOs as has been thought by many (and wished for by the Listing Agents that deal with REOs). If true, this is BIG news as there won’t be a new wave of foreclosures hitting the market to drive down prices yet again. You can download their report here.
