Actually, clarifying the current loan environment is a tough one and while this article may do some of that, there is still a lot to be learned about getting a loan these days. Find a good lender and spend some time talking to them before you do anything...
Here's the entire article from Bankrate.com's Holden Lewis. There is a list of guidelines that should help you understand if refinancing with the new limits will be of interest to you.
(Excerpts)
- You might be disappointed if you planned to refinance your mortgage under the new "jumbo-conforming" limits. The requirements are stringent, and they might leave some would-be borrowers out.
- Depending on the median cost of houses in each metro area, the jumbo-conforming limit can be as high as $729,750. You can look up your county's limit on this clickable map.
- There is no guarantee that the rates on jumbo-conforming loans will be low enough to attract a lot of borrowers. Rates will be set by the market. The most likely outcome is that the rates on the jumbo-conforming loans will end up somewhere between those for conforming loans and those for jumbo loans.
14 March 2008
13 March 2008
Housing Affordability Improves as Prices and Rates Decline
California homes reach greatest affordability in three years...
Click here for entire article
From C.A.R.
Written by Robert A. Kleinhenz, Ph.D. Deputy Chief Economist
Decreases in the median price and declining mortgage rates during the fourth quarter of 2007 dramatically improved affordability in California for the first time in two years. At $483,730, the statewide median price fell by a record margin of 14.9 percent or $84,400 compared to the third quarter median of $568,130. The median price was nearly $80,000 lower than the median of $561,430 from the fourth quarter of 2006, corresponding to a record-setting 13.8 percent year-to-year decrease. Nearly all areas of the state experienced large price declines, as tighter underwriting standards and the liquidity crunch dramatically reduced the pool of qualified buyers who could obtain a loan.
Dramatically lower prices have contributed to large improvements in affordability in recent months. The C.A.R. Housing Affordability Index for First-Time Buyers (HAI-FTB) measures the share of all households that can afford the entry-level home. At 85 percent of the overall median, the price of an entry-level home in the fourth quarter was $411,170. Assuming a 10 percent down payment and a 1-year adjustable rate mortgage of 6.21 percent, the monthly payment (including taxes and insurance) was $2,740. With a 40 percent qualifying ratio the minimum income required for such a home was $82,200, considerably below the levels of recent quarters when the minimum income approached $100,000.
Click here for entire article
From C.A.R.
Written by Robert A. Kleinhenz, Ph.D. Deputy Chief Economist
Decreases in the median price and declining mortgage rates during the fourth quarter of 2007 dramatically improved affordability in California for the first time in two years. At $483,730, the statewide median price fell by a record margin of 14.9 percent or $84,400 compared to the third quarter median of $568,130. The median price was nearly $80,000 lower than the median of $561,430 from the fourth quarter of 2006, corresponding to a record-setting 13.8 percent year-to-year decrease. Nearly all areas of the state experienced large price declines, as tighter underwriting standards and the liquidity crunch dramatically reduced the pool of qualified buyers who could obtain a loan.
Dramatically lower prices have contributed to large improvements in affordability in recent months. The C.A.R. Housing Affordability Index for First-Time Buyers (HAI-FTB) measures the share of all households that can afford the entry-level home. At 85 percent of the overall median, the price of an entry-level home in the fourth quarter was $411,170. Assuming a 10 percent down payment and a 1-year adjustable rate mortgage of 6.21 percent, the monthly payment (including taxes and insurance) was $2,740. With a 40 percent qualifying ratio the minimum income required for such a home was $82,200, considerably below the levels of recent quarters when the minimum income approached $100,000.
06 March 2008
FHA Limit Raised to $662,500 in Sonoma County
Beginning tomorrow, Sonoma County’s limit on loans insured by the Federal Housing Administration will be temporarily raised to $662,500.
HUD will announce tomorrow the new conforming loan limit for Sonoma County and other markets, a spokesman said. Conforming loans are sold to government-sponsored buyers such as Fannie Mae and Freddie Mac and have a current limit of $417,000 in California and most states.
What this means is much more affordable loans for those buying property in Sonoma County, especially on the Coast where our median price is well over $800,000. This is great news for both buyers and sellers.
HUD will announce tomorrow the new conforming loan limit for Sonoma County and other markets, a spokesman said. Conforming loans are sold to government-sponsored buyers such as Fannie Mae and Freddie Mac and have a current limit of $417,000 in California and most states.
What this means is much more affordable loans for those buying property in Sonoma County, especially on the Coast where our median price is well over $800,000. This is great news for both buyers and sellers.
NEW Home Construction Slowdown Could Have Dual Impacts
As stated in the article from the California Building Industry Association below, new construction has slowed down significantly (62%) over the last year. While this may have been necessary, given consumer's hesitancy to buy, they warn that we may have gone to far. Once buyers start buying again, it could cause a frenzy over a shortage of inventory.
I still think this is a great time to buy as interest rates continue to remain low and prices have not yet started their rise. That is sure to change once the migration begins...
Here's the full article.
New home construction starts in California fell 62 percent in January as homebuilders continued to cope with slow sales and the ongoing credit crisis, according to the latest data from the California Building Industry Association (CBIA). Builders pulled just 2,608 permits for single-family homes statewide in January, a 28 percent decline from the previous month.
CBIA Chief Economist Alan Nevin said the drop in new residential projects breaking ground coupled with the ongoing push to move existing inventories, carry the potential to produce a "severe shortage" of new housing once the real estate market rebounds.
"We have rarely had a situation where interest rates are low and the California economy is stable and yet there appears to be hesitancy among potential homebuyers to make the critical purchase decision," Nevin said. "We do know, however, that within the near-term future, the market will decide, often en masse, to begin the home-buying process, but this time there will be a severe shortage of new product."
I still think this is a great time to buy as interest rates continue to remain low and prices have not yet started their rise. That is sure to change once the migration begins...
Here's the full article.
New home construction starts in California fell 62 percent in January as homebuilders continued to cope with slow sales and the ongoing credit crisis, according to the latest data from the California Building Industry Association (CBIA). Builders pulled just 2,608 permits for single-family homes statewide in January, a 28 percent decline from the previous month.
CBIA Chief Economist Alan Nevin said the drop in new residential projects breaking ground coupled with the ongoing push to move existing inventories, carry the potential to produce a "severe shortage" of new housing once the real estate market rebounds.
"We have rarely had a situation where interest rates are low and the California economy is stable and yet there appears to be hesitancy among potential homebuyers to make the critical purchase decision," Nevin said. "We do know, however, that within the near-term future, the market will decide, often en masse, to begin the home-buying process, but this time there will be a severe shortage of new product."
01 March 2008
Median Prices of Bodega Bay Homes (Rolling 12-months)
If you're interested in following the pricing trends in Bodega Bay and Bodega Harbour, bookmark this link and check back monthly. (This is a PDF document - click here to get the free Adobe Reader)
On the report, you'll see that Bodega Bay peaked in May of 2006 and dropped about 20% as of December 2007. Bodega Harbour's 27% trough came last Summer and appears to have stabilized.
Activity has certainly increased over the last month with seven properties in escrow after a significant quiet period.
On the report, you'll see that Bodega Bay peaked in May of 2006 and dropped about 20% as of December 2007. Bodega Harbour's 27% trough came last Summer and appears to have stabilized.
Activity has certainly increased over the last month with seven properties in escrow after a significant quiet period.
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