New Listing! 3058 Main Street, Morro Bay


Beautiful complex and end unit. Just 1 common wall and is walking distance to
the beach with pee-a-boo view of the ocean from balcony. Nice open kitchen with
all built–in appliances. Living room offers cozy fireplace for the brisk winter
evenings. Wet bar too. 2 br’s and 2 full baths. Mirrored closet doors, lots of
windows for plenty of natural light. Indoor laundry. 1 car garage + carport
parking. Very nicely maintained condo complex. Take a look and don’t wait to
purchase your vacation spot in Morro Bay

New Listing! 508 Highland Dr., Los Osos


Charming 2 bedroom, 1 bath home plus large detached bonus room located in what
the locals consider one of the best neighborhoods in Los Osos. The property is
close to shops, great schools, and hiking trails. What’s more is the home has
recently been upgraded with new plumbing, insulation, windows, floors, and more.
The bathroom is remodeled and there is updated electrical throughout. It’s ready
for you to add the final touches and call it home-sweet-home.

December employment news surprising poor, mortgage rates dip

In late-December, the Federal Open Market Committee decided that U.S. employment numbers were strong enough to begin reducing the U.S. central bank’s involvement in the economy.

Did the FOMC and Federal Reserve Chairman Ben Bernanke act too soon?

After strong back-to-back employment numbers in October (+200,000 jobs) and November (+241,000 jobs), payrolls added just 74,000 jobs in December. Economists had expected to see job growth near 200,000 for the month.

The unemployment rate ticked down to 6.7% from the prior figure of 7.0%, but this dip is primarily due to 347,000 workers leaving the workforce.

The headline unemployment figure is limited by its inputs.  A broader measure of unemployment called the “U6” accounts for workers who are discouraged, underemployed, and unemployed in an attempt to get a more succinct employment picture. In December, that U6 measure of unemployment dipped to 13.1%.

December’s employment-to-population ratio was 58.6%.

After the employment report was released, mortgage rates immediately  dipped. According to loan officer and blogger Dan Green, pricing for conventional mortgage rates “improved close to 45 basis points; and pricing for FHA and VA mortgages improved approximately 35 basis points.” One hundred basis points is equal to 1%.

Rates fell as investors modified their expectations for Federal Reserve action.

The FOMC enacted “tapering”, or reduction, of the Fed’s quantitative easing (QE) stimulus program in December, dropping bond purchases by $10 billion per month from $85 billion to $75 billion.

Bernanke had long said that the Fed would peg stimulus action to employment numbers. Positive employment growth to the end of 2013 seemed to back up the FOMC’s decision.

Incoming chairman Janet Yellen will relieve Bernanke on February 1. With December’s poor data, she will face the decision to resume tapering in the coming months, or hold the Fed’s purchases as they currently stand. Much will depend on future data releases.

The Fed has been able to put downward pressure on mortgage rates with its QE program. Less QE will result in higher mortgage rates. If “tapering” is put on hold due to poor economic data, mortgage rates will likely hold near current levels, and perhaps dip a bit lower.

Give us a call at 805.543.LOAN to see how the latest dip in rates might affect your finances and real estate purchasing power.

New Listing! 11620 Madreselva, Atascadero


Beautiful End Unit in the picturesque Dove Creek Development. This upgraded 3
bedroom/ 2.5 Bath condo features a private finished fenced backyard with room
for entertaining. Open Concept living with upgraded tile flooring, custom
blinds, tall ceilings, custom paint throughout and only one shared wall. Large
eat-in kitchen, including granite counter tops and a formal living room. Large
master suite with soaking tub, double vanity sinks, shower and large walk in
closet make this your perfect home. Family Friendly neighborhood with walking
trails, kids play areas and large green belt space for walks with the dog. Floor
plan is available on request or call for a showing!

New Listing 216 Madera, Los Osos


The hard work has been completed and this wonderful Cabrillo Estates lot is
ready to build TODAY. The permits are in place for a 3 bedroom, 3 bath 3400 sq
ft home, and plans can be customized and modified according to your dreams. This
lot has all required surveys and retrofit credits finished, septic and water
meter installed, and the foundation is in place, so you do not have to wait long
to live in this fabulous neighborhood!

Happy Laptop!

paso tech 2The New Year is here and as most folks do this time of year, I am trying to work through my to-do list.  With strange programs popping up on my laptop and my mouse misbehaving, I had enough!  Given the fact that my laptop is my life, it took some courage to turn over my ‘baby’ and main business tool.  So with some serious trepidation about being separated, I went down to 7th and Pine on recommendation from the techy in my office to Paso Robles Tech. They did a fabulous job!  I had my machine back in the shortest time ever and things are purring nicely again.  They understood my worries, addressed my needs and were quick to call when done, delivering my machine back well before they estimated.  All is well in my world!  

New Listing! 1865 Hi Mountain, Arroyo Grande


Picturesque equine ranch in the Ranchita Estates. This facility has everything you and your horses need on one property. Located on a 48.5 Acre lot, this property has two horse barns with fifteen stalls, two modest homes, two studio rental units, large riding arena, large round pen and multiple pastures. The main home was built in 1995. It’s a two bedroom, two bath home with vaulted ceilings and bamboo floors. The second home is also a two bedroom, two bath home, with built-in fireplace and breeze way to the large two car garage. This property needs to be seen to be appreciated. Visit the website for many more photos.


image of the entire property



Mortgage rates rose over 1% in 2013, still begin 2014 near lowest level in history

Freddie Mac publishes a national average for the 30-year fixed mortgage rate every Thursday. Though it inputs rates from a spectrum of banks, the survey average does a succinct job of broadly tracking what the market is doing. The first survey reading of 2013 (January 3) was 3.34%, just a step above the lowest ever recorded. By the end of the year (December 26), that number had jumped to 4.48%.

The highest 30-year fixed reading of the year was 4.58% back in August, and the largest week-over-week jump came between June 20 and June 27, when it jumped from 3.93% up to 4.46%.

Central Coast Lending is a mortgage banker based in California’s Central Coast. Call us at 805.543.LOAN with your mortgage and real estate questions. 

The week-over-week jump of 0.50% was a formative step for the rest of the year in mortgage rates. We have written about this process at length (skip ahead of you remember all this).

2013 was the year of the Federal Reserve. With its quantitative easing program, the Fed purchased $85 billion in bonds per month, including $40 billion of mortgage-backed securities. With QE, the Fed helped pushed mortgage rates down to record lows by guaranteeing a large source of demand in the market for MBS.

Throughout 2013, the Fed was having such an impact on the market that even a whispered suggestion that it would reduce its policy had massive effects. Investors wanted to get in front of the decision to “price in” potential movement. The Federal Open Market Committee (FOMC), the Fed’s policy setting wing, said that it would adjust policy to U.S. economic performance. Investors interpreted news through these Fed-colored glasses, and this accounted for part of the volatility we saw with rates.

Most recently, the Fed decided to reduce its bond buying program by $10 billion per month ($5 billion MBS) in the new year. As the Fed continues to reduce its presence, mortgage rates will feel less downward pressure. We expect rates to drift up to 5% as the Fed continues to reduce quantitative easing.

Still, despite the 1% jump in the 30-year fixed in 2013, rates are still at the extreme-low end of the spectrum.

Zillow put together a brilliant chart that tracks mortgage rate movement since 1971. The takeaway is obvious. Real estate finance remains extremely affordable. Check it out:


Give us a call at 805.543.LOAN for a free, honest appraisal of your finances to learn how much home you can afford.