Sunny after early morning low clouds and fog and cooler. Only 71 predicted for downtown LA. Today is Brokers Open House day. Here is our new listing. It's a good one!
REMARKS: Prime Silver Lake Condo. Turn key, prime top floor, west facing unit with mountain and city light views. Remodeled kitchen with maple cabinets and corian counter tops. Remodeled master bath with double glass sinks and glass shower. Built- in entertainment center in 2nd bedroom. High ceilings, great light, hardwood floors and fireplace. Beautiful courtyard, pool and hillside park with picnic tables and BBQ. Close to the best of silverlake's shops, restaurants, etc. A fabulous unit.
Mark Cohen was once again recognized as California's #1 Individual Mortgage Originator, according to Mortgage Originator Magazine (April 2008). Mark has now received this honor 11 of the last 12 years.
Conforming and Non-Conforming Rates
Loan Type
Points
Maximum
Rate
Payment Per $1.000
APR
30 Yr. Fixed
1
$417,000.000
5.250%
$5.52
5.405%
15 Yr. Fixed
1
$417,000.000
5.000%
$7.91
5.264%
Jumbo Conforming 30 Yr. Fixed
1
$625,500.00
5.500%
$5.68
5.665%
15 Yr. I.O.*
1
$5,000,000.00
6.500%
$6.32
6.611%
6 Month Libor Arm
1
$6,000,000.00
3.125%
$4.28
4.625%
Special 3/1 ARM**
5.000%
$5.37
5.099%
Special 5/1 ARM**
5.375%
$5.60
5.476%
Special 7/1 ARM**
5.625%
$5.76
5.728%
Special 10/1 ARM**
5.750%
$5.84
5.853%
*add 1/8% to rate for loan amounts over $2,000,000
Interest Rate Market Factors & Commentary
Finally a positive week for the mortgage market as the Fed announced that it would purchase up to $500 Billion in government sponsored enterprise (GSE's) mortgage backed securities. This needed and dramatic move will provide liquidity to the market and will encourage investment in the mortgage market. The result of the news was a drop of approximately a ½ point in rates which was desperately needed. This should provide a stimulus for the housing market. However, it is important to note that the government investment in mortgage backed securities is not applicable to jumbo loan amounts and thus any positive carry over will take time to filter through.
The general economic news last week continued to be negative but it appears to me that the market has factored in a major slowdown for the economy. Any positive news would be well received and would help the housing market. I have detailed below factors that will affect the mortgage and housing market in the next several weeks.
Factors Affecting the Mortgage Market
1) Massive Infusion of Liquidity into the credit markets should stabilize the mortgage markets and increase the amount of purchase and refinance transactions. 2) Lower Inflation Levels & a Stronger Dollar are a positive for bonds over time. The falling price of oil and commodities has resulted in tamer inflation expectations. 3) Low Expectations for Both the Economy and Real Estate Market have resulted in very low expectations for the public in the next several months. Any stabilizing or nearer term improvement would help consumer confidence tremendously. 4) Unemployment Rate continues to be a major concern as we will obtain further information this week when the employment report is released for November. It is expected that 320,000 jobs were lost last month with the unemployment rate rising to 6.8%. (This continues to be a drag on the economy.) 5) Consumer Sentiment is low but this could be swayed if there are any signs of stabilization 6) Jumbo Lending Should Improve in 2009 as there are several institutions other than New York Money Center Banks who have stated that they would re-enter the market. This would make markets more competitive and provide liquidity 7) Sales Need to Increase and Amount of Foreclosures and Short Sales Need to Stabilize in order for lenders and government agencies to loosen up credit policy.
As usual, the prices of all commodities (oil, silver, copper, etc.) as well as movements in the stock and currency markets will continue to have an impact on the market.
**These products may have a higher interest rate, more points or more fees than other products requiring documentation. This rate sheet is intended for real estate professionals and Business Managers only, and should not be distributed to borrowers. Rates, APR's and programs subject to change at any time without prior notice. Cohen Financial Group is a California Corporation licensed by the Department of Real Estate. License ID#01257559.
0 Comments on Beverly Hills Real Estate blog Tuesday 12-02-08
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