New Listing! 419 Santa Barbara, Morro Bay


One of the best locations in the park. Located at the end of the street and
backing up to ranchland, this two bedroom, two full bath home features vaulted
ceilings, an airy, open floor plan with lots of windows, a huge master suite
with large soaking tub and separate shower. There is a separate laundry room,
two decks (one in front, one in rear with a hot tub) and a bricked patio area.
There is a bonus workshop that includes electricity. This home sits on a 52′ x
102′ lot that can be purchased separately through the park owner. A $180 a month
fee includes water, trash and sewer once the land is purchased.

New Listing! 965 Anchor St. Morro Bay


Check out this one of a kind custom home located in a desirable area of Morro Heights. Beautiful and unique 3 bdrm, 3 1/2 bath, with dining room, family room, and guest quarters/loft above garage. Newly remodeled kitchen complete with GE Profile appliances, granite counter tops, and Thompson mission style hickory cabinets. Plenty of room for family and guests. Awesome views through out. Don’t miss this one!



New Listing! 560 Buchon St., SLO


This charming, light filled condominium is located on prestigious Buchon Street just blocks from the heart of downtown San Luis Obispo. It features beautiful wood floors throughout. Fireplaces in both the living room and master bedroom have been updated with gorgeous tile surround. Two spacious master suites with cathedral ceilings. Indoor laundry room upstairs. Private backyard with two patios for ample outdoor living. This downtown home offers all the charm of a European flat. Visit

Local Photographer/Videographer

Photographer Tim De Frisco, a fan of our blog for the past several years, has been creating great still images for many years for well-known clients like the Harlem Globetrotters, Runner’s World Magazine, Sports Illustrated, ESPN, The NBA, Mountain Dew and many others. He relocated to San Luis Obispo from Colorado two years ago to take advantage of the great locations, climate and “beautifully soft light”. He has been able to convince several of his major clients to shoot their projects here. Most recently, he photographed advertising and catalog images for Pearl Izumi cycling apparel and Mizuno Running shoes on the Central Coast. You can see more of his work here:

Tim has recently expanded into video production, specializing in creating cinematic quality short videos for small business websites. As a promotional piece, he hooked up with local performers Something Ridiculous to create “Something Epic”.


Something Epic Trailer from DE FRISCO on Vimeo.

Behind the “Brutal” Jump in Mortgage Rates After Last Wednesday’s FOMC Meeting

What a difference a week can make.

Last Monday, we mentioned that the Federal Open Market Committee (FOMC) meeting would set the tone for the week. As it turns out, one week would alter the entire outlook for the housing market – at least in the short term.

30 yrWe went from publishing our “one point” cost 30-year fixed rate 3.625% (3.722% APR) on June 17 to 4.375% (4.463% APR) on June 24 (see graph to the right). This is a rate jump of 0.750%! (And our prices are some of the lowest and most competitive around).

The rise in pricing has a real dollar value. People who have not locked in a mortgage rate, suddenly face a higher monthly payment of up to $100 (or more). This effects their affordability and purchasing power.

“This is a brutal day for people actively engaged in mortgage transactions who have not locked their interest rates,” noted Daniel Podesto, co-owner of Central Coast Lending.

We have written extensively about what happened – and why – but we will recap below. For further, in-depth reading, including commentary on the news and possible effects to the Central Coast real estate market, check out:

1. Making Sense of the Jump in Mortgage Rates and Federal Reserve Policy

2. Mortgage Rate Hike Could Hurt Blossoming Central Coast Real Estate Market

First, we will say this. We don’t anticipate rates to keep rising like this. As we will explain, we believe that the market has over-reacted (and may be misunderstanding) the FOMC announcement and Bernanke’s press conference.

The sequence of events went something like this:

  1. The FOMC sets Federal Reserve policy, and as the policy meeting of last Wednesday (June 19) wrapped up, markets were itching for clarity about the future of the quantitative easing (QE) program.
  2. The FOMC announced that the Fed would continue its easing program.
  3. The FOMC also released slightly upwardly revised economic projections.
  4. Federal Reserve Chairman Ben Bernanke said in a press conference that the recovery remained weak, but acknowledged that tapering would begin as the economy continues to improve.
  5. Investors and traders jumped out of stocks and bonds, preparing for easing as early as late-2013. Both markets tank. Mortgage rates rise, and rise some more.

If the logic between points 4 and 5 seems shaky, that is because it is. Bernanke didn’t say explicitly that the Fed would begin tapering by late-2013. He repeatedly said “look to the data.”

The Fed has long acknowledged that its program existed to help with the economic recovery, mentioning certain employment (6.5% unemployment rate) and inflationary (2.0%) thresholds that the Fed would consider progress.

So in other words, the market is reacting to 1) something it already knew would eventually happen, and 2) something that was “hinted at” – derived from their interpretation of Bernanke’s words, not from reality itself.

“In my opinion, there is a huge disconnect between what the Fed and Bernanke are saying and reaction in the stock and bond markets,” said Podesto.

“I did not hear at all that the Fed was likely to taper as soon as September,” Podesto continues. “Bernanke clearly stated that late-2013 would be the earliest they would consider tapering it the economy continued to improve to the point we reached 7% unemployment.”

With so many sectors working through “soft” growth (as Bernanke put it), there is also a real likelihood that QE will continue through 2013.

This is a tough blow for the housing market, especially as it has been taking off over the past year. Still, we believe that mortgage rate price gains will settle down. Keep checking in with us for our rate updates every Monday, Wednesday, and Friday for tracking on this story.

We follow stories like this closely to stay on top of this fast moving industry. We are happy to take any questions and prepared to work through any problems that have come about due to the rate hike. Give us a call at 805.543.LOAN.

New Listing! 237 N Chorro St, San Luis Obispo


Beautiful end corner unit with breathtaking views of Cerro San Luis and Bishops Peak. This upscale condo was newly constructed in 2010 and is always rented. The close proximity to Cal Poly, shopping, dining and local transportation, are all the benefits of this superior investment. There are two spacious bedrooms and two private loft spaces (11’x10), to easily accommodate 4+ occupants with three full bathrooms. This unit currently rents at $3K a month and is ready for sale!

New Listing! 2820 Juniper Ave. Morro Bay


Don’t miss out on the opportunity of making this diamond in the rough your dream home. Forever, panoramic views of the Rock and Blue Pacific Ocean from Avila to Cambria are yours for the taking. Bring your decorating ideas and start out on this 2 bedroom home with great bones. Highlights include vaulted, beamed ceilings, a step down living room with gas log fireplace, a separate dining area and a kitchen with ample counter space and breakfast bar. The entire living, dining room, kitchen and master bedroom have incredible views. There is a laundry room, double car garage and a additional garage with high ceiling for boat or RV. It is a single level home as a bonus! The rear of the property adjoins privately owned ranchland affording you the opportunity of viewing birds, deer and other wildlife at times. The lot to the South of this home is currently available for purchase at $190,000 and would give a buyer incredible expansion possibilities.


Music Under the Stars

SLO County music lovers have another reason to cheer.  Vina Robles Winery’s new Amphitheatre opens in Paso Robles this weekend with some great SLO County talent.  Local favorite Jill Knight and the high energy group Zongo All Stars kick off the new venue on Saturday.  The entire season looks like a winner with a full range of events planned – from Bonnie Raitt and Peter Frampton to Sammy Hagar and Ziggy Marley, with some Prairie Home Companion, Lyle Lovett and Steve Martin thrown in the mix just so there is something for everyone.  The list is impressive and the setting looks to be just about perfect.  For more information and to view all of the events go to

New Listing! 16655 Walnut Ave. Atascadero


Garden Farms Property – Remodeled in 2003, this single level updated home features 2931 sq. ft. of living space on more than 1.5 acrres with 3 bedrooms, 3 baths and 2-car garage. This fantastic property also offers a separate 2 bedroom rental unit, 450 sq. ft. detached workshop, 650 sq. ft. storage building, and expansive redwood deck with above ground swimming pool.