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 (info@CentralCoastLending.com) with ANY and ALL questions about mortgage rates, mortgage pricing, mortgage pre qualification, mortgage programs… really ANYTHING real estate related, we have you covered!