The California Association of Realtors (CAR) predicts that the money allocated for the CA first-time homebuyer credit may run out in 10-20 days once the program starts on May 1. This is what CAR said: “The $100 million allocated for California’s first-time homebuyer tax credits may be depleted in about 10 to 20 days or
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California Tax Credit The newly announced California tax credit is available to homebuyers closing from May 1, 2010 to July 31, 2011, but they must be in contract by December 1, 2010. The credit is for 5% of the home price up to $10,000 cap. It’s for owner-occupied single family homes only, and it’s for
As most know from our weekly coverage over the last 64 weeks, the Fed has been using a $1.25 trillion budget to buy mortgage bonds since January 1, 2009 in order to elevate mortgage bond prices and push rates down. Rates are 1.125% lower than they were when the program was announced, and the Fed
As most know from our weekly coverage over the last 64 weeks, the Fed has been using a $1.25 trillion budget to buy mortgage bonds since January 1, 2009 in order to elevate mortgage bond prices and push rates down. Rates are 1.125% lower than they were when the program was announced, and the Fed
The most-asked questions by home mortgage borrowers so far in 2010 are about where rates will go, how to lock rates in a volatile trading environment, and how home appraisals affect the lending process. Each question is addressed below. Where Will Rates Go By Summer? Rates on loans up to $417,000 are about 5% as
A common question among mortgage shoppers is: what if rates get better after I lock a rate for my loan? The answer is that locking a rate is much like buying a stock. When you choose to buy a stock at a specified price, you’re executing a Limit Order. This means you set the price
Rate/Market Update Rates have remained steady for the past two weeks at levels about .25% above all-time record lows. This despite the Fed’s easing off of mortgage bond buying. This past week the Fed bought $13.5b of mortgage bonds, the lowest amount since Week 1 of the program in January. The weekly averages have been
Following two months of declining rates that took us back to all-time rate lows not seen since May, rates climbed about .25% in the past two weeks. There are three main reasons for this: (1) the Fed has trimmed its weekly buying of mortgage bonds from about $25b per week to $20b per week. Less
As discussed last quarter, FHA loans have become the most viable way for borrowers with less than 20% down to buy a home. Single family home FHA loans are fairly straightforward. Rules for condo FHA loans have recently changed, and it’s critical for any homebuyer targeting condos up to a price point of $850k and
The loan limits that make it possible for high-cost markets like the Bay Area and Los Angeles to have conforming loans up to $729,750 are set to expire December 31, and the $8000 tax credit available to homebuyers expires November 30. As of this writing on October 5, there’s been no indication as to whether
In a market report last quarter, we buried a quotation that’s worth revisiting. It was from investment luminary Dean Witter in May 1933, about 3.5 years after the Great Depression began. He said: “Some people say they want to wait for a clearer view of the future. But when the future is clear, the present
Banking is stabilizing but strict loan approvals continue in this back-to-basics era. Nimble monetary policy helps navigate volatile markets and sets the precedent going forward. After two years of turmoil, how do you act on cautious optimism? It’s all covered in this QuarterlyBasis report. If you’d like to discuss anything, I’m at your service. Bank
Banking is stabilizing but strict loan approvals continue in this back-to-basics era. Nimble monetary policy helps navigate volatile markets and sets the precedent going forward. After two years of turmoil, how do you act on cautious optimism? It’s all covered in this QuarterlyBasis report. If you’d like to discuss anything, I’m at your service. Bank
As of May 1, a new regulation prohibits loan officers from talking to home appraisers. Previously, this was one of the first steps in a loan agent’s client advisory process. The new regulation is called the Home Valuation Code of Conduct (HVCC) and was mandated by Fannie Mae and Freddie Mac, which both are regulated
The Federal Reserve has been an active participant—as opposed to just a regulator—in mortgage bond markets all year. Beginning in January, they started buying mortgage bonds to help rates. This is the primary reason rates touched on record lows throughout the first two quarters of this year and remained close to record low levels since.
Here are two market realities as we conclude year two of the ongoing credit crunch: Dow and S&P 500 indices tell us stocks are down 40%, and the S&P Case Shiller Home Price Index tells us single family home prices are down 33% since their 2Q2006 peak, putting prices at mid-2003 levels. So home pricing
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