Month: June 2015

520 Palos Secos, Arroyo Grande

Prestigious Rancho Grande neighborhood. You will be captivated by this inviting home. The approx. 2,886 square foot 3 bedroom 2 full bath home also has an expansive upstairs bonus room that could be the kid’s kingdom, office or 4th bedroom. New hardwood floors, carpet, paint, and fixtures throughout. The large master bedroom has high ceilings, 2 walk-in closets, accesses to patio and yard. Fully finished custom, 3-car garage with components designed and installed by Garage Envy (famous for doing Jay Leno’s Garage!). The slate floor is rated for heavy storage and there is an attic storage room above garage. Home boasts natural light throughout, open floor plan, great room perfect for entertaining, high ceilings, walnut hardwood floors,wireless ADT security

Hancock Park Beauty has 3 bedrooms, 2.5 baths. Formal Living Room with Bay Window. Spacious Family Room with Rock Fireplace and Skylights , French doors lead to permitted Sunroom. Formal Dining with French doors to Large Patio. Remodeled Kitchen with Stainless Steel Appliances, Island, Pantry & Garden Window. Upstairs Master Suite has Large walk-in closet Cathedral Ceiling and Bay Window. Updated Master Bath with Tub separate Shower & dual Sinks. Indoor Laundry room with Chute. This home also features new Travertine and Engineered Hardwood Flooring & Dual Pane Windows . Easy access to attic storage. Permitted Sunroom off of bedroom with view of the Hills. Newer roof and recently painted exterior. East facing rear yard with Mature Landscaping and Fruit Trees. Large RV Pad. Close to Park, Hospital, College and Shopping. **Information deemed reliable but not verified or guaranteed by broker. **

 

Single story living! Wonderful location close enough to the ocean to hear the waves! Peek-a-boo view of Morro Rock and the bay. Nice view of Hollister Peak from the front of the home, view of Broderson Mountain from the back of the home. Front wood door with glass inserts. Red brick wood burning fireplace. Large living room with picture window and large skylight. Windows are newer and dual paned. Efficient kitchen is all electric. Beautiful wood cabinets. Appears to be a well-built home. Direct access inside from very large two car garage. Greenhouse style patio with a laundry alcove. Potting shed or workshop in backyard. Backyard is huge, fenced, beautiful cherry trees in bloom! Mature trees and plants, including front yard rose garden. This house and yard is waiting for you to love it. Close to back bay, ocean, golf course, Montana de Oro State Park, library, community center, shopping.

Multiple reports on home sales were released over the past week, bringing many positives to the housing market. Existing home sales rose 5.1% in May to a 5.35 million rate, with the year-over-year rate up 9.2%. This is the strongest year-over-year rate in nearly two years, with the exception of the 11.9% increase in March. Existing home prices are also on the rise, up 7.9% in May for a median price of $228,700. This forward motion in existing home sales is largely due to the increasing number of first-time buyers entering the market. First-time buyers made up 32% of the sales. That was up from 30% in April and 27% from May 2014 and was the largest contribution since September 2012. All-cash sales accounted for 24% of transactions for the third straight month. Sales to individual investors remained at 14% for a second consecutive month. New home sales also displayed upward movement in May, rising 2.2% to an annual rate of 546,000, a 7-year high. There is still a lack of supply for both new and existing homes, which may speed up further construction activity. In general, May’s progressive home sales numbers are helping to place housing at the top of the economy as of late.

The number of jobless claims, although continuing to be near historic lows, did increase slightly in the past couple of weeks. In the week ending June 20, initial claims inched 3,000 higher to 271,000. The 4-week average, however, displayed a decrease of 3,250 to a 273,750 level, trending slightly lower than a month ago.

The final reading of first quarter growth was negative 0.2%, about as expected. Several upward revisions made growth look better, but GDP still declined for the first time since Q1 2014.

Consumers seem to be displaying more confidence in the economy lately. The Bloomberg Consumer Comfort Index rose 1.7 points to 42.6 in the week of June 21, which is supported by the 0.5% rise in personal income in May, and the 0.9% surge in personal outlays. Consumer sentiment came in at 96.1 for the month a June, a 5-month high. The expectations component has an index of 97.8, displaying a 13.6 surge from May, the largest monthly gain since March 1991. The current conditions component shows a strong gain to 108.9, up from 100.8 at the end of May.

Mortgage Rates

Mortgage applications inched higher in the week of June 19, with an increase of 1% for purchase applications and 2% for refinancing applications. Year-on-year, purchase applications displayed a very strong increase of 18%.

More recently, many loan programs saw little-to-no change. Over the past week, Manufactured (Conventional), 30-Year Fixed VA, and 30-Year Fixed USDA all displayed price improvements, the largest being a nearly 1/8 point improvement in the VA loan program. The 30-year fixed rate displayed an increase of 10.9 basis points, and remains above 4.00%. All other loan programs remained unchanged.

Sean Becketti, chief economist for Freddie Mac, released a statement regarding current rates: “Mortgage rates were little changed this week… Economic releases confirmed increasing strength in housing. Existing home sales increased 5.1 percent in May to an annual pace of 5.35 million units and new home sales increased 2.2 percent to an annual pace of 546,000 units. Buyers appear anxious to purchase homes before the expected increase in interest rates later this year. Given the tight inventory of homes for sale, a 5.1-month supply at the current sales pace, home prices are being bid up.”

Give us a call at 805.543.LOAN to discuss your mortgage options and to get a free rate quote, and check out the benefits of our 21-Day Loan Processing!

The Federal Open Market Committee released the results of their monthly meeting on Wednesday. As they are waiting for job growth to pick up, a rate hike has not yet been issued. Their statement says that slack in the jobs market is diminishing, but further improvement is needed. The Fed’s economic forecasts placed the unemployment tendency up to 5.2% – 5.3% from 5.0% – 5.2%, and the GDP tendency down to 1.8% – 2.0% from 2.3% – 2.7%. The released statement says that economic growth is “expanding moderately,” and the labor market is “picking up.” The consumer sector is described as “moderate” with improvements in housing, business investment and exports continue to be “soft.” The inflation assessment remains unchanged; inflation is “running below target” but expectations are “stable.”

Jobless claims have dropped back down to near historic lows. Initial claims in the June 13 week fell 12,000 to 267,000, with the 4-week average dropping 2,000 to 276,750.

Just about all the readings in the May consumer price report point to very soft price pressures with the overall monthly gain, at plus 0.4%, and the ex-food ex-gasoline core gain, at only plus 0.1%. The 0.4% overall gain may look a bit high compared with prior months including April’s 0.1% rise, but it reflects an unsurprising jump in energy costs specifically gasoline which jumped 10.4% in the month. But energy prices are still very low, confirmed by the year-over-year rates which for all energy products are down 16.3% and for gasoline, down 25.0%!

Housing starts came in at 1.036 million for the month of May, down 11.1% from the April rate. However, April has been revised higher to 1.165 million for a 22.1% gain from March. Permits went up by 11.8% to 1.275 million in May, following a 9.8% gain in April. This is the best rate for permits since August 2007.

This week will bring more housing market reports, including updates on house prices, and new and existing home sales.

Mortgage Rates

Rates for most loan programs have recently retreated slightly from 2015 highs. The largest decrease was displayed by the 30-year FHA, down 12.7 basis points from the previous week to a rate of 3.500% (5.062% APR). The only programs that did not decrease are the 30-year Jumbo, which increased by 11 basis points, and the 15-year fixed, which remained unchanged from the prior week. According to Freddie Mac deputy chief economist, Len Kiefer, this slight drop in mortgage rates is likely due to the recent positives within the housing market.

Give us a call at 805.543.LOAN to discuss your mortgage options and to get a free rate quote, and check out the benefits of our 21-Day Loan Processing!

 

This beautiful Craftsman style home sits on the lake in the gated community of Cypress Ridge. With stunning tranquil views the home offers two master suites, a gourmet kitchen, vaulted cedar ceilings, custom mahogany doors, and natural wood trim around the windows and doors. The back patio features a covered patio to enjoy the lake scenery and relax with family and friends. This well cared for home is centrally located to the community’s golf course, amenities and local shopping and restaurants.

Situated on an oversized corner lot – privacy abounds. A lovely paved entry welcomes you to this beautiful home. Vaulted ceilings letting light flood the living, dining areas. Crisp plantation shutters clad the windows. The kitchen is appointed with fabulous amenities – there is a wonderful bar for casual dining & serving. The ample storage includes a pantry for those oversized items. Glass doors lead to the backyard and the stairs to the upper terrace for your ocean views. The master suite is a fabulous retreat also on the first floor, its en suite is a perfect place for relaxation. Double sinks & vanities are both beautiful and functional. The upper floor has auxiliary bedrooms and a full bath. Also upstairs is an oversized 5th bedroom/bonus room with an ocean view window seat. This space would be perfect for home theatre, gym, crafts, games and so much more. Another fabulous feature is the oversized 3 car garage. With its near proximity to parks, shopping & dining

 

The Labor Department recently released their Job Openings and Labor Turnover Survey for the month of April, which boasted a number of positives. Job openings soared to a much higher-than-expected 5.376 million, the highest reading in the history of the JOLTS series, dating back to 2000. Year-on-year, job openings increased by 22%. The quits rate also showed improvement, down slightly to 1.9% from 2%.

Although they have risen recently, Initial jobless claims continued to post below 300K for the 14th consecutive week with 279K American’s filing for unemployment in the week of June 6, and the 4-week average rose for the third straight time to 287,750.

Retail Sales rose 1.2% in May, marking the third consecutive month of gains. May’s advance was broad based with gains across 11 of the 13 major categories led by auto dealers, clothing, and building material stores. A report from Wells Fargo notes,

“U.S. retail sales have been in the news, it seems, forever and not because sales are improving. Actually, retail sales have been disappointing month in and month out. However, the weakness continues to be located in the goods sector of the economy, while the service sector, that is, food services and drinking places, continues to boom.”

Food and beverage businesses are flourishing, with year-over-year growth of around 10%.

 

Mortgage Rates

Mortgage rates displayed significant increases this week, reaching 2015 highs. Most loan programs rose by approximately 1/8 percentage-point. The largest jump was seen in the 30-year FHA program, with an increase of 24.4 basis points. The 30-year fixed increased 12.5 basis points to a rate of 4.125% (4.165% APR), its highest rate since early November of last year.

Freddie Mac deputy chief economist, Len Kiefer, noted,

“Mortgage rates rose above 4 percent for the first time since November 2014 as Treasury yields surged. Markets are responding to strong employment data. In May, the U.S. economy added 280,000 jobs. Moreover, job openings surged to 5.4 million in April, up over 20 percent from a year ago.”

Current market expectations of a rate hike are still low, as a June hike is expected with 3.7% probability, a September hike with 29% probability and an 83% probability for a rate hike to occur by December.

Visit our Mortgage Rate Update page for more rate information, updated weekly!

 

CCL’s 21-Day Loan Processing

Here at Central Coast Lending, we like consistency and reliability. That is why we work to process every loan within 21 days, no matter how long the closing period.

Our Process:

• Consultation—You and your loan officer will assess credit-worthiness, discuss available financing options, and establish expectations.
• Application—The goal of our application is the gather detailed information that will be necessary to determine your eligibility.
• Documents—We need your help getting your documents to us as fast as possible. The documents will be used to verify the information you provided in the application and will include items such as pay stubs, W2s, tax returns, and bank statements.
• Underwriting—We underwrite every loan at the beginning of the loan process. Our approach is unique, and gives you a major advantage in a competitive market…

Read the full article to learn more about the procedures and benefits of our 21-Day Loan Processing. Our process can help you make a stronger purchase offer, reduce stress, and save money! Give us a call at 805.543.LOAN to discuss your mortgage options and to get a free rate quote.

Reports regarding employment were abundant over the past week. While the headline-grabbing unemployment rate increased to 5.5%, economists and traders embraced this as a positive sign that the labor market continues to improve. Expectations were for the unemployment rate to hold steady at 5.4%, but an increased labor force participation rate resulted in the 0.1% increase. Gallup reported that 66.8% of adults in the U.S. participated in the workforce in May, while the U.S. Bureau of Labor Statistics reported the participation rate to be 62.9%.

Another sign of positive momentum in the employment sector was news that the economy added 280,000 jobs in May, well above the 225,000 expected. March and April figures were also revised higher by 32,000. Average hourly earnings for all employees increased by 8 cents to $24.96 which is a 2.3% increase year-over-year.

May brought fewer layoffs than in previous months with a layoff count of 41,034, down from 61,582 in April. May’s layoff count is also significantly down from the 52,961 layoffs in May 2014. Most layoffs came from the financial and government sectors, as JP Morgan announced they cut 5,000 jobs, and Massachusetts cut 4,500 jobs.

Jobless claims continue to be notably low, with a decrease of 8,000 in the week of May 30 to a 276,000 level. The 4-week average increased slightly to 274,750 claims, but is still running approximately 5,000 lower than a month ago. All jobless claim levels are at or near 15-year lows.

The Bloomberg Consumer Comfort Index is displaying downward momentum, although the numbers are still considered solid. Consumer comfort came in at 40.5 for the week of May 31, down 0.4% from the previous week. Although there is strength in the jobs market, there are still signs of uncertainty among consumers.

Construction spending is showing improvement, with a 2.2% gain in April, placing it well above the high-end forecast of 1.6%. Residential construction spending rose 0.6%, with notable gains for both single-family and multi-family homes. Private, non-residential spending displayed improvements for the power and office sectors. Public spending displayed strong gains as well, especially for educational building.

 

Mortgage Rates

National mortgage rates continue to be among the highest seen thus far in 2015. According to Freddie Mac’s Primary Mortgage Market Survey released on June 4, the 30-year fixed average mortgage averaged 3.87% for the second straight week, while the 15-year fixed decreased slightly from 3.11% on May 28 to 3.08% on June 4. These rates continue to come in below those from this time last year, when the 30-year fixed averaged 4.14% and the 15-year fixed averaged 3.23%.

Local mortgage rates rose across the board over the past week, with increases of near 1/8 percentage points in most loan programs. The 30-year fixed went entered into the 4.00% range for the first time since mid-December with a rate of 4.00% (4.040% APR) on June 3. Visit out Mortgage Rate Update page for more in-depth information on current rates.

Now is a great time to contact us regarding your home purchase or refinance! Give us a call at 805.543.LOAN to get a free rate quote. You can also Apply Now for free online!