Shane Haas & Nate Harimoto’s Blog

conejo valley may statistical report 2008-2009.pdf

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west ventura county may statistical report 2008-2009.pdf

harimoto - haas june 2009 real estate reader.pdf

Mortgage rates across the board jumped this week, with conventional mortgages reaching their highest point so far this year. 

Freddie Mac reports a jump in the 30-year fixed mortgage rate to a 25-week high of 5.29 percent during the week ended June 4, up from 4.91 percent the prior week. As recently as two months ago, rates had been 4.78 percent.

The 15-year fixed rate also increased, rising to 4.79 percent from 4.53 percent, with Freddie Mac chief economist Frank Nothaft indicating that the gains follow a surge in long-term bond yields. 

Meanwhile, the five-year adjustable mortgage rate climbed to 4.85 percent from 4.82 percent, and the one-year ARM surged to 4.81 percent from 4.69 percent.

Sales of existing, single-family homes increased 49.2 percent in April in California compared with the same period a year ago, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) April sales and price report. As the level of unsold inventory declines, the state’s median price will likely stabilize.  Inventory levels for homes in the under $500,000 segment shrank to nearly three months in April, compared with almost 10 months a year ago, while unsold inventory in the more than $1 million segment rose to approximately 17 months, compared with roughly 10 months in April 2008. Favorable home prices in many parts of the state have led to an increase in affordability for first-time buyers.  In the first quarter of 2009, affordability rose to 69 percent, enabling many to take advantage of first-time buyer programs and near record-low interest rates. 

Calif. median home price - April 09: $256,700 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region April 09: Santa Barbara So. Coast $840,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region April 09: High Desert $106,530 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 2009: 69 percent (Source: C.A.R.)
Mortgage rates - week ending 5/28/09 30-yr. fixed: 4.91% Fees/points: 0.7% 15-yr. fixed: 4.53% Fees/points: 0.7% 1-yr. adjustable: 4.69% Fees/points: 0.6% (Source: Freddie Mac)  

U.S. Dept. of Housing and Urban Development (HUD) Secretary Shaun Donovan recently announced that the Federal Housing Administration (FHA) will allow home buyers to apply the administration’s new $8,000 first-time home buyer tax credit toward the purchase costs of a FHA-insured home. The American Recovery and Reinvestment Act of 2009 offers home buyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate.

Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 percent down payment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of the announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate.

Dear Friends,

In this month’s publication, we examine several practical strategies for finding and maintaining your inspiration.

harimoto - haas 7 ways to get inspired.pdf

Homeowners seeking to refinance their mortgages may be surprised by the amount of paperwork required.  During the “easy credit” years, some lenders did not require proof of income or documentation.  Nowadays, most lenders require borrowers to provide pay stubs, banks statements, brokerage statements, and possibly tax returns.  Self-employed individuals may be asked for a profit-and-loss statement.  Those relying on bonus income should expect that most lenders will assume this year’s bonus will be a lot less than last year’s, which could make securing approval more difficult.

Determining the amount of equity in the home is key to being approved for a new loan. Homeowners whose mortgage obligations are less than 80 percent of the home’s value are more likely to have refinancing options available to them.  Other homeowners who are current on their mortgages, owe 80 percent to 105 percent of the home’s value, and have a loan owned by Fannie Mae or Freddie Mac may be able to refinance under the government’s “Making Home Affordable” program.

Other factors to take into consideration when refinancing are the property’s appraised value, the homeowners’ credit score(s), whether or not the property has a second mortgage, and the length of the original loan.

Dear Friends,

The residential housing market is recovering differently at different price ranges, presenting a unique opportunity for move-up buyers. Learn more in this month’s market summary.

harimoto - haas may 2009 market summary.pdf

Calif. median home price - March 09: $253,040 (Source: C.A.R., California Association of Realtors)
Calif. highest median home price by C.A.R. region March 09: Santa Barbara So. Coast $825,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region March 09: High Desert $114,670 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 2009: 69 percent (Source: C.A.R.)

Mortgage rates - week ending 5/21/09 30-yr. fixed: 4.82% Fees/points: 0.7% 15-yr. fixed: 4.50% Fees/points: 0.7% 1-yr. adjustable: 4.79% Fees/points: 0.6% (Source: Freddie Mac)