Here is the latest edition of the Market Trends for Costa Mesa and South Coast Metro. In it you will find information on: Average Listing Price One way to understand where the market is heading is by examining whether home sellers are increasing what they want for their home. Click here for more Average Price [...]
Here’s what’s happening and what it means to home loan rates:
What is happening and why? To put it bluntly, the passage of the payroll tax cut extension is being funded via a mandate to Fannie Mae and Freddie Mac (the nation’s largest providers of mortgage money) to increase their guarantee fees or “g-fee’s” by at least 10 basis points on the rate. So rather than giving a par rate of 4.00%, for example, the par rate is now increased by at least 10 basis points, or approximately 4.10%. But as you probably know…home loan rates are priced and offered in .125% increments, so this will most likely impact the consumer by .125% in rate. Whether you agree or not on the politics behind this cost being passed along to folks who are taking out mortgages, the Congressional Budget Office recently estimated that the increase will ultimately pay for about $35.7 Billion of the cost of the payroll tax extension.
In This Issue Last Week in Review: President Obama spoke…but what actions will follow?Forecast for the Week: With reports on inflation, manufacturing, and consumer news, there’s sure to be tons of action in the markets. View: Got stress? Who doesn’t these days…but take a moment and learn a few specific actions you can take to [...]
Many pundits are talking about pricing these days, with most of the talk centered on an impending drop in national home prices. The odd thing is, most data releases show home-price improvement. Clear Capital’s data being the most recent, showing that home prices nationally gained 4 percent in the second quarter of 2011 compared to the first quarter. What’s more, all four of Clear Capital’s regions posted gains.
This newsletter is an opportunity to let you know about the state of the market and current trends. It may even touch on ways that you could enhance your home’s value.
