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orange county real estate: Store Credit Cards : The Hidden Cost Of "Instant Savings" - 12/03/09 01:27 AM
'Tis the season to do shopping -- and get bombarded with offers to open credit cards.
The deals are tempting, too. "Open a charge card today" and save up to 20% on your purchase. Considering that the average Black Friday ticket was $343, that's $68 saved per store.
For big-ticket items like televisions, the savings are even bigger.
But for people in the market for a new home -- or looking to refinance -- taking advantage of in-store savings could be a long-term money loser.
Every time you apply for a credit card, your credit score drops.
According to myFICO.com, "new credit" … (0 comments)
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orange county real estate: New Home Supplies Plummet, Pressuring Home Prices Higher - 12/01/09 10:40 AM
The supply of newly-built homes fell to its lowest levels since 2006, offering additional proof of a housing market in recovery.
Home supply is defined as the amount of time it would take to sell the current inventory of homes at the current pace of sales.
In October, for the 8th consecutive month, home supplies fell. Since peaking in January 2009, it's now down by almost half.
Lower supply leads to higher prices. This is Economics 101.
Furthermore, supply is expected fall into 2010. According to the government, builders are breaking ground on new homes at a declining pace, even as sales ramp up.
Builders … (1 comments)
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orange county real estate: What's Ahead For Mortgage Rates This Week : November 30, 2009 - 11/30/09 08:28 AM
Mortgage markets improved last week on stronger-than-expected economic data and safe haven buying.
The holiday-shortened trading week amplified what should have been modest gains into large ones.
Conforming mortgage rates dropped by about a quarter-percent last week, dropping them near their best levels of the year -- and of all-time.
Oddly, mortgage rates are falling as the U.S. dollar weakens. This is atypical because mortgage bonds are repaid in U.S. dollars. When the value of the dollar is falling, therefore, the value of holding mortgage bonds become less over time.
Investors are snapping up bonds with fury, however. Partially because of lingering concerns … (0 comments)
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orange county real estate: Should You Consider A 15-Year Fixed Mortgage? - 11/29/09 12:02 PM
For today's home buyers and homeowners that can manage the higher monthly payments, 15-year fixed rate mortgage rates look attractive as compared to comparable 30-year products.
The 15-year/30-year interest rate spread is near its 5-year high.
Despite lower rates, however, homeowners opting for a 15-year fixed mortgage should be prepared for its higher monthly payments. This is because the principal balance of a 15-year fixed is repaid in half the years as with a standard, 30-year amortizing product.
As compared to 30-year terms, 15-year products repay 3 times as much principal each month.
Versus a 30-year, 15-year fixed mortgages have a few downsides … (0 comments)
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orange county real estate: Late 2009 South Orange County Housing Update - 11/28/09 04:26 PM
Hello again – I hope your Thanksgiving Day ( And Black Friday.) went beautifully!
In our local housing market, the number of available houses is now the lowest in at least a few years. In Coto de Caza, for example, it went from a previous low of 131 houses, back in mid January, to hovering around 150 in the Spring, but has since steadily declined, to now being less than 115.
Correspondingly, the number of houses in escrow has followed a slightly different path over that time, from a low of 9 in January, up to a high in mid-summer … (0 comments)
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orange county real estate: The Home Price Index Shows Home Values Increasing. Case-Shiller Agrees. - 11/28/09 12:04 PM
It's official -- home prices are no longer in free fall.
According to the Federal Housing Finance Agency, the Home Price Index posted its first quarterly increase since 2007 last quarter.
The news was reported Tuesday.
The Home Price Index is an interesting metric. It's huge in its scope, accounting for every home sold in the country that backs a mortgage bound for Fannie Mae or Freddie Mac with two notable exceptions:
It doesn't track new construction It doesn't track multi-unit homes Because the Home Price Index makes these specific exclusions, and because it doesn't account for FHA and jumbo mortgages, some analysts discount the … (2 comments)
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orange county real estate: One Reason Why Mortgage Rates Are Back To All-Time Lows - 11/27/09 09:32 AM
Home affordability improved this week after the Federal Reserve released its November 3-4, 2009 meeting minutes.
The FOMC Minutes is a companion to the Federal Reserve's post-meeting press release. It's released 3 weeks after the Fed adjourns and details the internal debates that shape our nation's monetary policy.
As compared to the press release, the minutes can be rather lengthy. November's press release featured 428 words, the minutes offered 6531.
However, this extra level of detail shapes markets and mortgage rates. With Wall Street unsure about the economy's path, investors look to our nation's central bankers for guidance.
The Fed has made several points clear:
… (2 comments)
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orange county real estate: Existing Home Sales Blow Past Expectations - 11/24/09 10:02 AM
Another month, another piece of evidence that the housing market is in recovery.
Existing Home Sales surged in October as the nation's homebuyers took advantage of low mortgage rates, low list prices, and, for some, a generous tax credit.
Home resales are 23 percent higher versus a year ago and home supply is down to 7 months nationwide.
Inventory hasn't been this low since February 2007.
The news shouldn't be surprising, however. The same real estate trade group that produces the Existing Home Sales report also publishes a monthly report meant to predict future home sales called the Pending Home Sales Index.
Pending Home … (0 comments)
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orange county real estate: Housing Starts Are Down And Why It's Terrific News For Sellers - 11/19/09 10:47 AM
A "Housing Start" is a home on which construction has started and, for the 4th straight month, national single-family housing starts held steady last month.
When the demand for homes grows faster than the number of homes for sale, prices increase.
As recent home sales data confirms, buyers currently outpace sellers and one consequence of this is an increase in multiple-offer situations this year.
It's no wonder home prices are up across so many neighborhoods.
October's Housing Starts report is yet another piece of housing data foreshadowing rising home prices into 2010.
Building Permits were also down in October, a potential demand-to-supply … (0 comments)
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orange county real estate: What's Ahead For Mortgage Rates This Week : November 16, 2009 - 11/15/09 10:27 PM
Mortgage markets improved last week as foreign buyers of mortgage debt helped to push mortgage rates to a 4-week low.
It marked the 3rd consecutive week that rates improved, breathing extra life into this year's ongoing Refi Boom.
Fixed-rate, conforming mortgage rates fell about 0.125 percent on the week. ARMs did about the same.
There wasn't much data to move mortgage rates last week; investors worked mostly on momentum and trends. However, the Friday University of Michigan Consumer Sentiment survey release garnered some attention.
After worsening in August and September, consumer sentiment fell for the third straight month in October. … (0 comments)
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orange county real estate: The new $6,500 federal tax credit for 'move-up' home buyers may benefit you - 11/15/09 03:43 PM
From today's Los Angeles Times:
If you fit the criteria and are considering buying another house in the coming year, you might want to speed up the process and close by the June 30 expiration date.
By Kenneth R. Harney, November 15, 2009
Reporting from Washington - Take a close, hard look at the new $6,500 federal tax credit for so-called move-up home buyers that passed the Senate and House recently. Though it's been getting second billing to the original $8,000 credit for first-time purchasers -- now extended by Congress through June 30 -- the $6,500 credit for current homeowners just … (1 comments)
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orange county real estate: Are There Any Foreclosure Deals Left? - 11/13/09 09:11 AM
For the eighth straight consecutive month, national foreclosure activity in the U.S. was dominated by a small set of states.
As reported by RealtyTrac.com, more than half of October's foreclosure-related activity came from just 4 states:
California Florida Illinois Michigan The remaining Top 10 states in terms of total foreclosure activity included Arizona, Georgia, Texas, Ohio, New Jersey, and Maryland.
Foreclosures are up 19 percent from last October, but a deeper look at the RealtyTrac report revealed two positive developments for the housing market.
Foreclosure activity is down 3 percent from last month Foreclosures per Household decreased in 9 of the 10 most … (2 comments)
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orange county real estate: Because Of The Federal Reserve, You Should Lock Before 2:15 PM ET Today - 11/04/09 12:09 AM
The Federal Open Market Committee caps off a scheduled, 2-day meeting today in the nation's capital, its 8th meeting of the year.
The group adjourns at 2:15 PM ET and, as is customary, will issue a press release reviewing its monetary policy and the health of the U.S. economy.
The FOMC's post-meeting statements are brief but comprehensive. They're a window into the mind of the Federal Reserve and Wall Street picks apart every sentence for clues.
It's why FOMC meetings tend to shake up the mortgage markets -- for good and for bad.
After its September 2009 meeting, the FOMC said in its press release:
Financial … (3 comments)
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orange county real estate: What's Ahead For Mortgage Rates This Week : November 2, 2009 - 11/02/09 01:09 PM
Mortgage markets improved last week after a series of hugely volatile trading sessions.
Rates carved out a wide range on the week, culminating in a late-Friday plunge that dropped rates by about 1/8 percent.
It was the first time in 5 weeks that mortgage rates fell.
Volatility like that of last week is nothing new on Wall Street; it's been a running theme in 2009. Volatility occurs when markets don't agree on what's next for the economy and, this year, there's been a lot of disagreement like that.
Data has been inconsistent. Take last week for example.
At 9:00 AM Tuesday morning, … (0 comments)
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orange county real estate: What The Media Missed In September's New Home Sales Report - 10/29/09 01:21 PM
Some days, newspaper headlines are a terrible place to get your real estate news.
Today is one of those days.
After the September New Home Sales report showed sales volume down from August, the mainstream media jumped on the story:
New Home Sales fall a surprising 3.6% Surprise Drop In New Home Sales Stocks slide as New Home Sales fall But the headlines miss the point, somewhat. Yes, home sales volume is important to housing, but it's not as important as home supply.
A deeper look at the New Home Sales data reveals an interesting comparison point:
New home sales volume fell 3.6% The number … (0 comments)
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orange county real estate: Home Values In 95% Of Case-Shiller Markets Are Improving Year-To-Year - 10/28/09 12:28 AM
For August, the Case-Shiller Index showed annual home values improving across 19 of 20 U.S. markets. It's the first time in 3-plus years that the benchmark housing index has shown such strength.
According to a Case-Shiller Index spokesperson, "The rate of annual decline in home price values continues to improve."
It's yet another sign that housing may have already bottomed.
However, just because the Case-Shiller Index shows a stabilization in home values, that doesn't necessarily make it true. This is because real estate happens on the local level and the Case-Shiller Index is more "national". It tracks data in just … (1 comments)
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orange county real estate: Government : Home Prices Edged Lower In August? - 10/22/09 11:39 PM
According to the government, home values edged lower last month.
The Federal Housing Finance Agency's Home Price Index report shows values down by 0.3 percent from the month prior -- the index's first down month since April.
The Home Price Index is based on the value of homes financed via Fannie Mae or Freddie Mac and, in this sense, the FHFA Home Price Index is more of a "national" real estate index than its private-sector cousin, the Case-Shiller Index.
But like the Case-Shiller, the HPI is as notable for what it specifically excludes as for what it includes. Most notably, the Home Price Index doesn't account for homes … (0 comments)
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orange county real estate: Housing Starts Rise In 8 Months Out Of 9 This Year - 10/21/09 10:21 PM
Housing Starts on single-family homes gained last month, marking the 8th time that's happened this year.
A "Housing Start" is a home for which the foundation has been excavated and, considered alongside other key market metrics, September data suggests that the housing market has stabilization is complete.
Momentum in housing is overwhelmingly positive:
Homes under contract are soaring National home supplies are way down Home values are up in a lot of markets Despite the positive news, the press is calling September's Housing Starts data a "bummer". Citing a drop in monthly building permits, the media purports that housing will slow in the months ahead.
The … (0 comments)
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orange county real estate: Previewing The New Good Faith Estimate - 10/20/09 04:08 PM
The new Good Faith Estimate makes its debut January 1, 2010.
Expanded from 1page to 3, the legislators responsible for the new Good Faith Estimate want it to be simpler for homeowners and home buyers to understand than the former version.
By most accounts, Congress will meet this goal.
The new Good Faith Estimate includes plain-English explanations of every fee, charge, and interest payment involved in a purchase or refinance. It also includes a section called "The Shopping Cart" in which applicants can compare lenders.
The new Good Faith Estimate is concise, too. Using a series of "Yes/No" checkboxes on … (15 comments)
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orange county real estate: 10/19/09 What's ahead for mortgage rates this week. - 10/19/09 02:20 PM
Mortgage markets worsened last week on better than expected economic data, causing mortgage rates to rise.
Last week was the third consecutive week that mortgage rates moved higher and, since touching a multi-month low in early-October, conforming mortgage rates are up by about a half-percent.
It's likely rates will continue to rise, too. That's because the same force that held rates down for so long is now the force pulling them up -- expectations for the U.S. economy.
Over the last 6 months, it wasn't clear in what direction the country was headed. The housing sector has been gaining in strength, but the rest … (0 comments)
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Bob Phillips, CDPE, SFR South Orange Co., CA
Coto de Caza,
CA
More about me…
Realty ONE Group
Address: 25910 Acero, #100, Mission Viejo, CA, 92691
Office Phone: (949) 643-2100
Cell Phone: (949) 887-5305
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