Los Angeles Time/Money & Company
The average rate for a 30-year fixed home loan edged back up to 5.01% this week after spending two weeks slightly below 5%, Freddie Mac said in its survey for the week ending Thursday.
The Primary Mortgage Market Survey from the government-controlled mortgage company assumed that borrowers owned a 20% stake in the house, had good credit and paid 0.7% of the loan amount in upfront points and fees to the lender.
Many people pay additional points to lower their rates.
The 15-year fixed mortgage, which is a popular option for homeowners refinancing to pay off their loans faster, averaged 4.40%, also with 0.7% in points and fees. That was up slightly from 4.39% for the week ending Jan. 28.
The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.27%, with an average 0.6 point. The one-year Treasury-indexed adjustable-rate mortgage averaged 4.22%, with 0.5 point, Freddie Mac said.
Monday, February 8, 2010
Thursday, February 4, 2010
Job Security is the key to 2010 Housing Market Recovery
Jobs, foreclosures, option-adjustable-rate mortgages and interest rates are among the top trends that could dictate what will happen in California's housing markets this year.
The Feeling Better Theory
The implications of high unemployment for housing aren't easy to sort out since the link betwen housing and jobs remains something of a mystery. "Housing is the leding indicator relative to economic activity , but housing markets seem to have their own rhythms" according to Richard K. Green, director of the USC Lusk School of Real Estate in Los Angeles. "While employment trends usually follow housing trends, the cause hasn't been determined. Speculation is that people are just feeling better,and they are more willing to make a commitment like buying a house," he says.
The "feeling better" theory suggests that job security, rather than employment prospects may be the key to unlock California's housing markets this year. Californians who feel secure about their income for the next five or 10 years may be more likely to buy a home than thow whose job situation seems less stable.
Interesting that in my conversations with buyers and sellers, there is an undertone sense that they are "feeling better" about the market overall.
2010 will prove to be a better year than 2009 for real estate in San Diego, is my humble prediction.
The Feeling Better Theory
The implications of high unemployment for housing aren't easy to sort out since the link betwen housing and jobs remains something of a mystery. "Housing is the leding indicator relative to economic activity , but housing markets seem to have their own rhythms" according to Richard K. Green, director of the USC Lusk School of Real Estate in Los Angeles. "While employment trends usually follow housing trends, the cause hasn't been determined. Speculation is that people are just feeling better,and they are more willing to make a commitment like buying a house," he says.
The "feeling better" theory suggests that job security, rather than employment prospects may be the key to unlock California's housing markets this year. Californians who feel secure about their income for the next five or 10 years may be more likely to buy a home than thow whose job situation seems less stable.
Interesting that in my conversations with buyers and sellers, there is an undertone sense that they are "feeling better" about the market overall.
2010 will prove to be a better year than 2009 for real estate in San Diego, is my humble prediction.
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