Fast Facts

Calif. median home price - October 08: $311,060 (Source: C.A.R.)

Calif. highest median home price by C.A.R. region
October 08: Santa Barbara So. Coast $860,000 (Source: C.A.R.)

Calif. lowest median home price by C.A.R. region
October 08: High Desert $154,660 (Source: C.A.R.)

Calif. First-time Buyer Affordability Index -
Third Quarter 08: 53 percent (Source: C.A.R.)

Mortgage rates - week ending 12/11/08
30-yr. fixed: 5.47% Fees/points: 0.7%
15-yr. fixed: 5.20% Fees/points: 0.7%
1-yr. adjustable: 5.09% Fees/points: 0.4% (Source: Freddie Mac)

This is, by far, the best affordability index I've seen and interest rates are are the way down (well under 5% in many cases).

Scenic Bodega Bay named among nation's most exclusive small towns

Business Week put together their list of the 32 most exclusive small towns in America and Bodega Bay was included.

Here's the article.

Mortgage applications soar as interest rates fall

Could this be the sign we're all looking for?

The number of home buyers applying for mortgages surged by a record amount last week in response to aggressive federal efforts to lower mortgage rates. Financial lobbyists advocated more of the same to stimulate the housing market.

Mortgage applications more than doubled in the holiday week ended Nov. 28 from the week before, according to a report Wednesday by the Mortgage Bankers Association. The association's index, a measure of mortgage loan application volume, was up 112% on a seasonally adjusted basis from the week earlier. And the refinance index leapt 203%.

Click here for the article.

How Are Interest Rates Set?

Here's an article that addresses a question that pops up on a regular basis. When we see the Fed lower it's rate and mortgage rates jump, it causes a bit of confusion. Hopefully this will help explain why...

"...home-loan rates are influenced by longer-term economic indicators. The Federal Reserve Board’s benchmark rate, the federal funds rate, is the interest that banks charge one another for overnight loans. And that, in turn, is closely tied to the prime lending rate that the banks charge preferred customers."

For the entire article, click here.

Getting a Loan These Days...

While 28% of potential homebuyers say that getting a loan is their biggest hurdle, the money is out there. The trick is finding it...

From a Wall Street Journal Marketwatch article, here are some guidelines:

If you're shopping for a mortgage these days, here's what you need to know:

- For the best rates on a conforming loan, people need a 20% down payment and a FICO of 750 or higher, Cecala said. Not surprisingly, very few people meet those requirements, he added. Risk-based pricing by Fannie Mae and Freddie Mac will cause those who don't meet those basic parameters to pay more for their mortgage. So even if you're able to get a mortgage with a 640 credit score, the loan terms will be more expensive, he said -- and if you have a low credit score you'll probably have to put more money down than someone who has better credit.

- Borrowers who aren't able to put 20% down will likely have to purchase mortgage insurance, and to get that there's another set of requirements that must be met. Insurers are being "very cautious" with regard to what they will insure, Habetz said. Requirements differ at each mortgage-insurance firm, but if a home is in a market where prices are declining, borrowers may be asked to put down 10%.

- Borrowers who are eligible for a loan backed by the Federal Housing Administration may be able to put down as little as 3%. That has become a more popular option for those with weak credit scores.

- Most nonconforming jumbo loans today are being made by portfolio lenders, who keep the loans on their books, Cecala said. Consumers may do well by doing some legwork and comparing rates at local community banks, which have been "coming out of the woodwork" to offer competitive rates, he added.

Fast Facts

Calif. median home price - September 08: $316,480(Source: C.A.R.)
Calif. highest median home price by C.A.R. region September 08: Santa Barbara So. Coast $935,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region September 08: High Desert $159,720 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 08: 48 percent (Source: C.A.R.)
Mortgage rates - week ending 10/23/08 30-yr. fixed: 6.04% Fees/points: 0.6% 15-yr. fixed: 5.72% Fees/points: 0.6% 1-yr. adjustable: 5.23% Fees/points: 0.5%(Source: Freddie Mac)

NEW-HOME SALES RISE 2.7 PERCENT IN SEPTEMBER

Sales of newly built single-family homes posted a slight increase in September, rising 2.7 percent to a seasonally adjusted annual rate of 464,000 units, according to a U.S. Dept. of Commerce report released Monday. The report also indicated that builders are making substantial progress depleting the supply of unsold units on the market.

The number of new homes for sale fell to 394,000 units in September, compared with 425,000 units in August. At the current sales pace, there was a 10.4 months' supply of unsold new units on the market, compared with an 11.4 months' supply in August. Conversely, the median number of months that completed new homes have been on the market hit a new record of 9.1 months.

Regionally, sales activity gained 22.7 percent in the West and 0.7 percent in the South in September, but at the same time declined 21.4 percent in the Northeast and 5.8 percent in the Midwest.