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Rate Update

Last week, the Central Coast Economic Forecast gave us some interesting numbers. San Luis Obispo County taxable sales are expected to grow 5.1 percent in 2012 and 5 percent the following year. Home sales are expected to grow 8.1 percent next year, and a total of 8.4 percent over the next two years. On the not so good side, the median home price in the county is forecast to remain flat over the next year, and then inch up over the next few years. On a national level, CoreLogic reported that home prices declined 4.1 percent from September of 2010.

Nationally, we had a few positive economic reports. Weekly jobless claims fell to 390,000, which is the fewest number since April. The four week average of claims fell to 400,000, which is also the lowest number since April.  There were more jobs posted in September (3.4 million) since August 2008.

Freddie Mac came out with Q3 loan statistics. Currently, the majority of loans are refinance.

–         Currently, 79 percent of all mortgage transactions are refinances.

–         82 percent of Q3 refinances were no cash-out transactions.

–         44 percent of those refinances maintained the approximate loan amount and 37 percent reduced the principal balance.

The 30 Year Fixed is at 3.875 percent (3.986 APR) and the 15 Year Fixed is at 3.250 percent (3.485).

Lastly, if you have been reading our posts here, you would have noticed that European debt problems have played a central factor in market volatility over the past days and months. If you want to learn more about this situation and the long-term outlook, head over to THIS article on CNBC. The article suggests that the debt problem could take 2 to 5 years to really unwind.

Follow along with the week’s major financial and real estate developments on our Facebook and Blog.

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