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December Mortgage Market Highlight

December 23, 2009 by

I want to show you this chart because it shows you that the 10 year treasure note index went from around 3.2% level on Nov 30 to over 3.7% in just less than a month.

10 year treasure note rate impacts a lot the long term debt rate such as the 30 year mortgage rate. As such, mortgage rates have been climbing up quickly too recently.

I was asked by many of my clients when is good time to lock the rate. Should they keep waiting for the rates to drop further for another 0.125%?

I always told my clients to focus on the risk and reward ratio, meaning by waiting for another drop of 0.125%, is it worth taking the big risks of market uncertainties.

This chart shows again how fast market can change and how large it can turn against those who are waiting.

Therefore, at the year end, in addition to wish you a happy holiday, I want to urge those who are taking large risks for small benefits to adjust your mindset and your strategy.

Whether it’s for financing, buying/selling a house or any other important financial decision, this new mindset of focusing on risk-reward ratio is going to help you big in the long run.

Filed Under: Mortgage Rate Tagged With: , ,

Three Important California Housing Data Released in December

December 20, 2009 by

There are some good news on California housing markets released in December to share with you:

  • First: Home sales in California increased 4.7 percent in November compared with the same period a year ago, while the median price of an existing home rose 5.8 percent.
  • Second: The median home price in California has risen nine consecutive months in month-to-month comparisons, this continuous rise means more than one single month rise as it finally gives us a nice upward trend.
  • Third: November marked the first time California’s median home price has risen in year-to-year comparisons since August 2007.

For home owners, this is sure to help warm your heart in addition to the Christmas candles. For those who are going to buy a house, these are strong signals to tell you not to wait any more. Also, if you are considering to move up, there is a $6,500 tax credit waiting for those who can qualify – What a nice gift!

For everybody, Happy Holiday and see you next year!

Email me or call me at 408-799-2558 if you want to discuss further on how you can qualify for the $6,500 tax credit if you move up.

Filed Under: Housing Stats Tagged With: ,

4 Key Points To Support Santa Clara County Housing Prices

December 9, 2009 by
Four key points you need to know from the most recent Senate agreements that I think will continue to give support to Santa Clara county housing price:

  • FACT: The temporary high-balance conforming loan limit of $729,750 for high cost area will be extended through December 31,2010. The limit was previously set to expire by the end of 2009. IMPACT: This extension will provide more affordable loans to buyers in Santa Clara county. Every 1% difference in interest rate will bring around 10% difference in housing price. Current jumbo loan rate for 30 year fixed loan is more than 1% higher than the high-balance confirming loan rate. This extension gives big savings to buyers in Santa Clara county, especially for people who plan to buy houses in the 750k-1million range. Therefore, demand for houses in this range with decent schools in areas such as Santa Clara, Sunnyvale, Cupertino, West San Jose would continue to be strong.
  • FACT: The deadline for the first time home buyer to claim the $8000 tax credit will be extended. According to the Senate agreement, buyers need to have a contract by April 30 and close by June 30, 2010 to be eligible. IMPACT: this coupled with the income limit increase in this new agreement will give more boost to housing market in high-income area like Santa Clara county. With higher income limit, more first home buyers will be able to eligible for the tax credit claim and thus will drive more fist time buyers into buying.
  • FACT: The agreement also expected to expand the credit to allow current homeowners and more affluent buyers to claim the credit. Senators moved to increase its annual income limits from $75,000 to $125,000 for single buyers and from $150,000 to $225,000 for married couples. IMPACT: This higher limit makes more sense for the market here and are more in line with the average income level.
  • FACT: Move-up buyers will get some benefits from the new Senate agreement as well.  The above income limits apply to both first-time and move-up buyers. In addition, the agreement would also allow current homeowners to claim up to $6,500 as long as the property they are vacating has been their primary residence for at least five years. IMPACT: This is the most significant change in this new agreement and a very strong positive impact to the housing market.

Email me or call me at 408-799-2558 if you want to discuss further on how these new Senate agreements can benefit you and whether it is the appropriate time for you to take action to buy or sell houses.

Filed Under: Market Update Tagged With: , , , , , , ,
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