The California real estate market is on solid footing. Pricing has appreciated a little over 5% year over year. The appreciation is driven by strong sales and low inventory. The affordability index has been dropping because of the higher property values. The interest rates have stayed steady around the 4.0% range. The affordability index will take a hit when the interest rates go up. The government has pushed Freddie, Fannie and FHA to ease down payment requirements and mortgage insurance costs to...Continue Reading!
There are things people do when they apply for a mortgage, that they think are helpful, or don't have consequences, but can be detrimental to getting the loan. An approved loan can blow up last minute, as lenders will pull a new credit report right before funding a loan, to confirm there aren't any changes. Here's a list of critical dos and don'ts that I give borrowers at the beginning of a loan process. 1) Do not transfer money around between accounts 2)...Continue Reading!
Interest rates have been on a major roller coaster over the past few days. The 10 year note most closely tracks the moves in mortgage rates. If you reference the attached chart you can see the volatility. Last Wednesday the rate was at 2.217%, but as the information on China's economic issues filtered through the market, the rate dropped to 2.05% at the end of the week. On Monday opening the rate dropped to 1.90%, but now within two days...Continue Reading!
As California property values continue to appreciate, the affordability level drops. Just wait until the interest rates go up... This is only one element of the housing affordability issues many regions in California are realizing. It's a matter of supply and demand. There aren't enough new units being built to satisfy the buyer base, or affordable rental units, driving up the rental cost up at a higher rate than sales prices. Buying real estate, even at the higher price range is like...Continue Reading!
5 Critical Financial Strategies Every Business Owner Should Know presented by the Economic & Financial Education Council. My presentation "Self Employed and Qualifying for a Mortgage" will be a segment of the workshop. Tuesday August 18 6pm 18118 Sherman Way Reseda, CA in the Bank of America building.. If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me. Ron Henderson GRI, RECS, CIAS President/Broker Multi Real Estate Services, Inc. Gov’t Affairs Chair...Continue Reading!
It's all about supply and demand. The tight supply of available homes is prompting more house hunters to bid up home prices, housing analysts say. "Prices are rising just too fast," says Lawrence Yun, chief economist with the National Association of REALTORS®. "And certainly far ahead of people's income." NAR recently reported that the limited number of homes for sale was pushing the national median sales price above its 2006 peak. In its latest existing-home sales report, NAR noted that the median...Continue Reading!
The CFPB just released a statement delaying the full implementation of the complex TILA-RESPA Integrated Disclosure. WASHINGTON, D.C. — Today, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray issued the following statement on the Know Before You Owe mortgage disclosure rule: “The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until October 1, 2015. We made this decision to correct an administrative error that we just discovered in meeting the requirements...Continue Reading!
Interest rates have broken out of technical areas today. This chart of the 10 year note correlates with the direction of mortgage rates. Over the past 3 days we've seen a 1/4% increase in rates, and over the 2 months it's up 3/4%. This will hurt potential buyers to qualify for loans, but also drive procrastinating buyers off the fence. If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting...Continue Reading!
The Consumer Financial Protection Bureau will not delay implementing the complex TILA-RESPA Integrated Disclosure requirements that go into effect Aug.1, but there will be a good-faith enforcement grace period that both the mortgage industry and a bipartisan coalition in Congress have asked for. The TRID rule, which was brought forth by the CFPB, has a sweeping impact on the real estate market through the implementation and compliance costs it requires. David Stevens, chairman and CEO of the Mortgage Bankers Association, told HousingWire...Continue Reading!