A report from Gina Kemsley, Terra Mortgage Banking
MORTGAGE WEEK IN REVIEW
This week’s reading on the GDP confirmed the US economy isn’t in a recession but a slowdown of the super-hot Chinese economy is the new fear of the day, and that is hurting Stocks, helping Bonds, and pushing rates lower.
CURRENT INTEREST RATES | SEPTEMBER 30, 2011
($200,000 – $417,000) 0 POINT
• 30 Year Fixed: 3.875% (3.95% APR)
• 5/1 ARM: 3.250% (3.32% APR)
($625,501 – $2,000,000) 1 POINT
• 30 Year Fixed: 4.750% (4.89% APR)
• 5/1 ARM: 3.125% (3.26% APR)
|CONFORMING (HIGH-BALANCE) RATES
($417,001 – $625,500 cap by county) 1 POINT
• 30 Year Fixed: 4.000% (4.14% APR)
• 5/1 ARM: 3.625% (3.77% APR)
Rates are DOWN compared to last week.
Rates are DOWN compared to last month.
Rates are DOWN compared to one year ago
Pace Of Home Sales Pick Up in August & Luxury Home Sales Strengthen!
According to the National Association of REALTORS®, Existing Home Sales rose 8 percent in August from the month prior, and 19 percent as compared to August 2011.
A total of 5 million existing homes were sold in August on a seasonally-adjusted, annualized basis. This is the highest reading since March, and a signal that the housing market may not be as weak as many would believe. Also sales increased across all price points, and home inventory dropped. At the current pace of sales, the nation’s 3.58 million homes for sale would be sold in 8.5 month’s time – A full month faster than observed in July.
Luxury home sales were strong in August, led by homes worth more than $1,000,000.
This same report noted that home sales in the million-plus range gained 12 percent year-over-year, and the next price point lower — $750,000 to $1,000,000 — showed similarly strong gains, adding 8 percent year-over-year.
There can be little doubt that this year’s falling mortgage rates have helped home affordability in the conforming mortgage range, but they have also given new life to the luxury market since ultra-low mortgage rates have lowered housing payments dramatically. Indeed, jumbo mortgage rates are cheaper than they’ve been in history and it’s not just the jumbo 5-year ARMs that are low these days; 7-year ARMs and 30-year fixed rates are too, and on average, today jumbo home buyers are saving 27% on their monthly mortgage payment compared to 2 years ago, so it’s little wonder the jumbo housing market is thriving.
If you’re buying a luxury home, typically 20% down will get you in the game, but you’ll need at least 25% down to get the “best rates available.” Make sure to call me to discuss your options before you go shopping.
Report courtesy of Gina Kemsley, Terra Mortgage
Office: (415) 464-3144
Cell: (415) 828-0218
Fax: (888) 449-0329
DRE License #: 01121768
NMLS #: 291780
Copyright © 2011 Gina Kemsley, Terra Mortgage Banking, All rights reserved.
About the author: The above Real Estate information on Marin County Real Estate was provided by Sylvie Zolezzi. I can be reached via email at Sylvie@YourPieceOfMarin.com or by phone/text at 415.505.4789. I specialize in residential real estate in beautiful Marin County, just north of the Golden Gate Bridge.
I am here to help you make the smartest real estate move and build wealth, providing you with reliable real estate information and advice you can trust.
My knowledge and passion for Marin County are equaled by my commitment to helping you successfully navigate the process of buying and selling a home. My business model enables me to provide superior service and a better client experience. I know the neighborhoods, the schools, the amenities; I know where you want to live. I know and love Marin County!