Website problems

I’m having some problems with my web hosting company and realize it’s time to make a switch.  I’m in the process of getting a new host and transferring the current site over to it.  I hope that the new hosting company is a lot better than the current one!   It will take a day or two for the transfer to be complete.


Mortgage Rate and Market Update – July 30

On Friday, July 27, the Commerce Department announced that the United States’ Gross Domestic Product (GDP) fell to 1.5 percent growth in the second quarter. GDP measures the market value of a country’s goods and services to quantify strength of its economic production. While the 1.5 percent figure still shows growth, it is down from the 2.0 percent pace in the first quarter, and well down from the target 3.0 percent rate that would reduce unemployment significantly.

Despite the bad news, U.S. financial markets took the news in stride. Poor data about the economy, employment, and consumer spending have caused investors to speculate that the Federal Reserve could take more drastic measures to stimulate the economy, such as another round of quantitative easing. Meanwhile, the European Central Bank has discussed taking more drastic steps to help keep the European economy stable. With the hope that more powerful Central Bank intervention could be imminent, the Dow has remained over 13,000.

This week, interest rates largely remained unchanged. The APR for rates at the lowest end offered (for the 30-year fixed, 3.250 percent) rose slightly, but the others remained steady and near yearly lows. We mark the 30-year fixed rate at 3.250 percent (3.311 percent APR) or 3.375 percent (3.364 percent APR). The 15-year fixed is at 2.750 percent (2.773 percent).*

We apologize for the gap in submissions. Expect for the usual post every Monday and make sure to check in daily with our website for the most important mortgage and economic news and analysis.
*APR is subject to increase and terms subject to change. APRs may very depending on loan details such as points, loan amount and loan-to-value, your credit, property type and occupancy. Closed rate and APR assume a rate and term refinance of a single family detached owner-occupied primary residence, loan amount $417,000 ($561,200 for high balance), and a minimum FICO score of 760. Situations vary based on applicant.

Tribune Article About Local Home Prices

I posted the following on the Tribune site about the article today stating that home prices have increased….

Actually, prices haven’t risen that much (or at all in some cases).  The Tribune uses DataQuick for their stats which doesn’t track the sold homes by non-foreclosures, REOs, and Short Sales.  If you aren’t tracking foreclosure mix % and the median home prices of each class of property, the data is incomplete.  What’s happened this year is that the foreclosure mix has changed in that the percentage of REOs (bank-owned) solds have decreased. Since the median price of REOs is well below the median price of non-foreclosures and short-sales, less REOS in the mix will make the overall median home price go up. Data Quick only reports the overall median price.

Comparing the first 6 months of 2012 for single family homes in SLO County, the median price for non-foreclosures has decreased slightly ($425K in 2011 vs. $420K in first 6 months of 2012).  The Short Sale median has decreased slightly too ($328K to $325K). The REO median has risen ($275K to $291K).

In regards to the foreclosure mix, non-foreclosure solds are now at 68% vs. 2011 when the yearly average ended up at 61%. REOs decreased from 28% to 21% and the Short Sale mix is unchanged at 13%.

The foreclosure mix for condos in SLO County  has changed even more. We were at 51% of non-foreclosures for 2011 and so far in 2012, that has jumped to 66%  Condo median prices have risen for non-foreclosures and short-sales, but have decreased for REOs. The jump in the overall median price for condos is primarily due to the foreclosure mix change.

DataQuick stats are fine to use pre-2006 when there were few to no foreclosures but not really useful in this market.

Read more here:
You can look at our statistics dashboards to really find out what is happening in our local market.
We also now have statistics dashboards for over 200 cities in Southern California. Go to and choose a city from the menu.

San Francisco Marathon

San Luis Obispo is the place I call home and, when the inner city mouse emerges, I travel 230 miles north to San Francisco for a few days.  Delighted to be a participant in the Wipro San Francisco Marathon on July 29, 2012!  This is a great venue and I’m proud to be supporting the American Brain Tumor Association!  Starting in the Embarcadero, the course meanders along Fisherman’s Wharf and the Marina, out and back along the Golden Gate Bride, through the Presidio, Richmond District, landing in Golden Gate Park.  From there, we run out to Ocean Beach, back through Golden Gate Park, Haight Ashbury, Mission District, passing AT&T Ballpark, and finishing just past the Bay Bridge – 26.2 miles.  Can’t wait to enjoy the architecture and scenery in one of my favorite cities!!


San Luis Obispo County Department of Public Works has issued a Water Will-Serve Policy for County Service Area 10A, (CSA 10A), which consists of the southern portion  of Cayucos on the east side of Highway 101.

A bit of history- In March of 1993, the County Board of Supervisors declared a water shortage emergency in CSA 10A to limit the issuance of water service-will serve letters, due to the perceived water shortage for future customers.  In October of 2006, CSA 10A contracted for 25-acre feet of Nacimiento Water.  In May of 2012, the Board of Supervisors voted to remove the water shortage emergency.

Current CSA 10A water use is 145-150 acre-feet per year.   CSA 10A has 190 acre-feet from Whale Rock Reservoir;  CSA 10A has 25-acre feet from Nacimiento (with an option to increase to 80 acre feet);  Typically 1 acre-foot will serve 4 properties in CSA 10A; There are approximately 170 vacant lots in CSA 10A;  CSA 10A’s water supply is sufficient for full build out within CSA 10A.

Water for the  northern areas of Cayucos are supplied by Morro Rock Mutual Water and Paso Robles Beach Water.

CSA 10A can now issue water service will-serve letters on request.  The water service will serve letters are a commitment by CSA 10A to provide water to a property.  Will-Serves are specific to a property and can not be transferred to another property. Will  serve  letters will transfer to the new owner when a property is sold.

Costs of Water Service for CSA 10A:

Application filing fee:  $100; Water Connection Fee: $8,100; Meter Fee ( If service line is installed): $325; Service Line Installation- (varies): $1,500-$2,000.

This information is from the San Luis Obispo County Department of Public Works, Douglas Bird, Hydraulic Operations Administrator.




California Homeowner Bill of Rights

Effective January 1, 2013 Californian’s have a safeguard again banks simultaneously foreclosing on their property, while working a loan modification.  In addition to that, banks are required to provide a single point of contract to the homeowner, with a complete understanding of the borrower’s loan status through out the process of loan modification or foreclosure.  To learn more, please click California Homeowner Bill of Rights.