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Monday Market Update: Housing Strong (Despite Some Troubling Numbers)

In our weekly Mortgage Rate Update last Wednesday (July 16), rates were mostly unchanged from the previous week. Conventional loan rates rose and dipped slightly:


Government-backed programs (FHA, USDA, VA) all increased slightly. You can see the full update here.

Unfortunately, I am out of the office this week, and not able to post the usual full market update. Below, I have included a few notes from the week that was (July 14 – 18):

July 14 – July 18:

  • Housing starts (construction) fell 9.3% in June to an annual rate of 893,000, according to the Commerce Department. But for the good(ish) news, much of the slowdown came in a single region – the South. Construction activity in other regions appeared much more robust.
  • Mortgage applications dropped by 3.6% during the week of July 11.
  • Construction down? Purchase applications down? Are we panicking yet? A Fiscal Times article by Marine Cole goes the other way, and explains “Why There’s Hope for a Stronger Housing Recovery.” In short: foreclosures are down, mortgage rates are very low, the labor market is improving, and builders believe that better times are on the horizon. Read the full article here.
  • Another positive for buyers: the government supports you! The Mortgage Credit Certificate (MCC) offers new/returning buyers a dollar-for-dollar credit to reduce their federal income tax bill based on their mortgage interest payments. The MCC will save you thousands! To qualify, buyers must be “first-time” (haven’t owned a home for three years), and meet income and price specifications. Learn more here!
  • The SLO County real estate market is a challenging one in 2014. Demand is sky-high, but inventory just isn’t as available as it was during the “boom” years of 2012 and 2013. As a lender, we have challenged ourselves to find products for a diverse and exotic array of properties. For example: Hobby Farms and Farm and Ranch programs. We are also pretty excited about this one-year income qualification offer, which is great for the self-employed whose fluctuating income might complicate the loan qualification process.
  • Here is a chart with information about more special loan programs for unique properties!

Please feel free to call us (Central Coast Lending) at 805.543.LOAN or email ( with ANY and ALL questions about mortgage rates, mortgage pricing, mortgage pre qualification, mortgage programs… really ANYTHING real estate related, we have you covered!

Written by Central Coast Lending - Go to Central Coast Lending's Website/Profile