Friday, August 21, 2015
Source: Union-TribuneThe Federal Reserve’s Open Market Committee is expected to raise a key interest rate that has played a significant part in keeping mortgage rates at historic lows in the wake of the biggest economic downturn since the depression. If the rate hike transpires, it would be the first since June 2006. As for the effect on housing, interest rate increases will be gradual, and there are too many other forces pushing prices upward in the state, such as low supply and high demand.
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Posted by Aracely Gordon at 8:53 AM
Friday, August 14, 2015
Friday, August 7, 2015
Interest Rate Update
Interest rates are still looking good. The experts feel the Federal Reserve will hold off any in-terest rate raise until next year
New Home Price Numbers Just Out
I have been saying for years that the best way to get (and keep) the housing market moving up-wards is to get the media involved as a cheerleader. For almost a year now the Orange County Register has been reporting how real estate is back and booming in the Orange County area. Another example is in today’s Register. The front page has a blip about the median home price and the Business section has a big article. The median priced home in Orange County is now back up to $629,500!! That is just below the record high of $645,000 reached in June of 2007.
How Does This Affect You ?
I have talked to several buyers who are "waiting" for prices to ease. I don’t see that happening anytime soon. Prices should begin to level off a bit but I would bet that prices continue to move upwards for several years. The Federal Reserve was set to start increasing interest rates but re-cent economic data and world events have caused a change in tone from the Feds who now see an increase either late this year or possibly into 2016. All good news. Pass this along and lets all have fun while the ride lasts.
|30 Year Fixed up to $417,000||3.75% to 4.125%|
|30 Year Fixed "Agency" up to $625,500||3.875% to 4.25%|
|30 Year Fixed FHA up to $417,000||3.50% to 3.75%|
|30 Year Fixed FHA "Jumbo" up to $729,500||3.625% to 3.875%|
Posted by Aracely Gordon at 8:50 AM
Friday, July 31, 2015
MBA's Stevens: We are in the middle of a housing crisis
The word “crisis” can sound alarmist, but Mortgage Bankers Association President and CEO David Stevens has used that term to describe the current state of housing, or better put, the lack of focus on housing as an opportunity by Washington policy makers. He places the blame at the top of the ladder, opining that President Barack Obama has not built enough confidence in consumers' views about homeownership. Due to the lack of focus, Stevens notes that “Today's environment is not encouraging credit expansion. It's forcing lenders to be overly conservative - ultimately failing entry-level homeowners on every front.”
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Source: KPCCWant to hear from two top academic experts on the housing market? KPCC interviewed Raphael Bostic, Judith and John Bedrosian Chair in Governance and the Public Enterprise at USC’s Price School of Public Policy, and Stuart Gabriel, professor of finance and director of the UCLA Ziman Center for Real Estate. The experts discussed state of housing, including a report from the CALIFORNIA ASSOCIATION OF REALTORS® noting that low supply has a lot to do with homeowners choosing to stay up rather than start over as buyers.
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The media, in explaining the causes of the financial crisis, has frequently painted the narrative that once subprime borrowers began to default, falling dominoes sent the entire mortgage market, U.S. financial system, and global economy into crisis. Consequently, subprime borrowers and lenders have received a great deal of attention and blame in analysis of the crisis, but new research suggests this is misguided. The study notes that the vast majority of mortgages in the U.S. were still given to prime borrowers, which means that the real estate bubble was a phenomenon fueled mostly by creditworthy borrowers buying and selling homes they simply thought wouldn’t ever decrease in value. Simply put, the foreclosure crisis would have happened even in the absence of such risky lending.
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Posted by Aracely Gordon at 5:09 PM
Friday, July 17, 2015
Water is at a premium throughout drought-stricken California, and home buyers will no longer be able to “go with the flow” as residents are tasked with conserving more. Typical U.S. households use approximately 260 gallons of water every day, according to the Environmental Protection Agency (EPA). And as mandatory water restrictions require residents to reduce their water usage by 25 percent, a water-efficient home can help play a large role.
Here are some common features of new construction that can help conserve our “liquid gold":
1. “Green” landscaping: The average suburban lawn consumes a whopping 10,000 gallons of non-rain water each year. That’s why some of today’s most coveted gardens utilize the principles of “xeric” or drought-tolerant landscaping. Native plants, such as lavender, ice plant and succulents are well-suited to drought-like conditions and drier soil, thereby helping to reduce water usage. Also, consider a smart “weather-sensing” irrigation system to automatically adjust the water schedule based on weather, seasonality and even zone type. After all, no one wants to see sprinklers running during an unexpected rain.
2. Efficient plumbing lines: New homes generally employ efficient plumbing lines including pressure-regulating valves, which can limit water usage to 60 pounds per square inch (psi). This reduction helps with leaks, saves water and money, and can lessen the possibility of pipes bursting. New homes may also include well-insulated hot water pipes, which speed hot water to the user, reducing the amount of water wasted in warming it up.
3. Improved water heaters: New choices including tankless heaters, heat pumps, or solar hot water heaters save both water and energy.
4. Low-flow plumbing fixtures: Faucets and showers account for 15 and 17 percent of household water use respectively. Improved low-flow options save water (about 30 percent for sinks and 25 to 60 percent for showerheads) without sacrificing quality, appearance or functionality.
5. Dual-flush toilets: Toilets are the number one source of water usage in the home, accounting for nearly 30 percent of residential indoor water consumption. Low-flow models are a step in the right direction, but dual-flush options are even better, offering a full flush volume for solids and a reduced flush for liquids.
6. Energy-efficient dishwashers: On average, dishwashers earning the ENERGY STAR label are 15 percent more water efficient than standard models. These newer-model dishwashers can save up to 1,600 gallons of water over the lifetime of the appliance.
7. Updated washing machines: Take a brand new washing machine for a spin and save on the second-highest water demand in the house. Models manufactured and sold since are required to use even less water than previous energy-saving models. Even as capacities have expanded, maximum water usage has decreased, helping to save as much as eight gallons more per cycle than older models.
Posted by Aracely Gordon at 5:06 PM