Friday, January 30th, 2009 at 10:19 AM
“Mayhem”
Were you planning on getting a mortgage rate in the 4% range?
Conforming rates are back up to 6% with no points, and the super-conforming loans between $417,000 and $546,250 are around 6.375% with no points.
Jumbos? High-sevens at most lenders.
But higher rates aren’t stopping those on the lower end from gobbling up whatever they can get. Asked to to describe how buyers are scrambling to tie up homes listed under $250,000, one agent called it “mayhem”.
How has the new year opened? The higher end isn’t nearly as lucky:
SD County Detached and Attached Listings Gone Pending Between Jan 1-29
| Year | Pendings Under $600K | Pendings Over $600K |
| 2005 | ||
| 2006 | ||
| 2007 | ||
| 2008 | ||
| 2009 |
Yes, those in 2009 haven’t closed yet, but there are probably another 1,000 short sales marked active that have pending offers on them too – but the listing agent won’t mark them pending.
You could say that these numbers are just reflecting how prices have come down – haven’t a bunch of more expensive homes slipped under the $600,000 level recently?
True – but tell that to the sellers (and agents) of the 4,217 active listings above $600,000 – including 1,041 listed this month!
Mayhem is right!
One more tidbit for buyers – if you buy a house and things don’t work, you can get a new FHA mortgage just two years after a foreclosure!
Posted on Friday, January 30th, 2009 at 10:19 AM in Thinking of Buying? | 26 Comments » | 
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Jim,
Although this is true…
“One more tidbit for buyers – if you buy a house and things don’t work, you can get a new FHA mortgage just two years after a foreclosure!”
It’s irresponsible to even infer that you can get a house very quickly after a foreclosure. Who’s to say that the market won’t completely change in 2 years and buyers that go into foreclosure won’t be able to buy a house for 7 years. (The amount of time it takes to remove delinquencies from your credit report.)
Even with all the Barney Frank idiots in the House of Representatives there’s only so much money we can steal from our children. Soon the checks gonna come and someone is gonna have to pay it.
shadash | January 30th, 2009 at 10:37 amThere’s a newer 3-br, 3-ba in Encinitas west of the freeway for $465,000.
And when I say west of the freeway, I mean west of the freeway.
W.C. Varones | January 30th, 2009 at 10:53 amirresponsible
I pretty sure you and the others reading this know that I mention stuff like this more out of disbelief than anything. I don’t expect anyone here to take me up on it.
Jim the Realtor | January 30th, 2009 at 11:00 amPlus he meant “imply,” not “infer.”
ted | January 30th, 2009 at 11:03 amNot sure where you got your info, but here’s today’s rates:
30 Yr Fixed
Tod | January 30th, 2009 at 11:06 amRate APR Points
5.125% 5.214% 0.000
With regard to the house mentioned in No. 2, I drove down the street once to check it out and pretty much as soon as I turned down the street I wanted to turn around and run away, although I had to get down to the bottom of the street in order to have room to turn the car around. It may feel less creepy down there if that house is now vacant, but you are literally right on the freeway on a street that feels like what you’d expect at a trailer park of the likes from which the guests on Jerry Springer live.
Hoping to Buy | January 30th, 2009 at 11:15 am6%, no points looks about right to me. Maybe even a bit optimistic.
AK | January 30th, 2009 at 11:30 amI’m ready for 18%. Where is Jimmy Carter when ya need him?
greenlander | January 30th, 2009 at 11:56 amMy mom refinanced our house that my bro and me rent from her in Encinitas. She got 4.25% on a 15year loan with I believe 1point at closing. I’m not a finance guru so I believe that is 1600 bucks up front to get that rate.
Chris | January 30th, 2009 at 12:09 pmNew Landlord in town. Maybe this will speed up forclosure’s as they plan to rent them after they foreclose.
Freddie Mac to rent foreclosed properties…Freddie Mac plans to allow borrowers to rent back properties after foreclosure. Just came up on Yahoo!
doughboy | January 30th, 2009 at 12:37 pmIs the new homeowners 4.5% coming soon? hahaha
pipes_surf | January 30th, 2009 at 1:11 pmCurious about the source too. Aimloan.com is still showing the same as last week. 30-year at 4.5% w/ 1.4 points. Or 5.125 w/ 0 points.
Jakob | January 30th, 2009 at 1:18 pmThe sellers of that house on the freeway paid $740K for it. A good illustration of the mania that took place a few years ago………..
downtowner | January 30th, 2009 at 2:31 pmWho in the world is offering 6% w/ 0 points. My local credit union is offering 5.375% w/0 points as of this morning.
Nathan | January 30th, 2009 at 2:59 pmWow, the numbers are all over the map. A Very Large Bank just quoted me 5.625%, no points, at 95% LTV. I guess that comes out somewhere around 6% APR.
Forgive me for saying this, but … “when banks compete, you win!”
AK | January 30th, 2009 at 3:30 pmAnd yes, maybe it is irresponsible to suggest that one can get an FHA mortgage two years after a foreclosure. You should’ve mentioned that you’ll still need a 550+ FICO score!
AK | January 30th, 2009 at 4:06 pmThe house in #2 has one of the most illiterate listing agents ever. “The Extra 700Sqt Gesst house it’s on the bottom of the main house by second Driveway, It has it’s own Kitchen, Bathroom and it’s Own Driveway.”
Lilly Maldonado
cantab | January 31st, 2009 at 3:55 pmPlatinum Properties
Wow, after 5PM? Don’t I have a party to get to?
Rob Dawg | January 31st, 2009 at 5:04 pmChris is now Chrisg
Just got home from party, Jim has a beautiful house and throws an amazing party. Band was killing it, and I got to hang out with Rob Dawg and Simone. it was fun. Pix to follow
Happy birthday Jim!
C
ps thanks Donna for the awesome job! You did amazing!
Chrisg | January 31st, 2009 at 10:03 pmIt ain’t a real par-tah until the cops come. It was a real par-tah. I particularly enjoyed the look of surprise when people found out who I was. At least no one blurted out “but, you’re so normal!” Jim is a lucky guy, great kids and Donna is amazing.
Rob Dawg | February 1st, 2009 at 8:14 amGot any videos or pics of this party?
GameAgent | February 1st, 2009 at 9:05 amHappy birthday to Jim, and thanks for making the housing crisis so damn funny.
Blissful Ignoramus | February 1st, 2009 at 2:20 pmMy credit union offers 5.125% 30 year right now.
BDiego | February 1st, 2009 at 9:07 pmHappy Birthday, Jim! Sorry I couldn’t make it–sounds like it was a good time!
lgs | February 1st, 2009 at 11:23 pm>>Were you planning on getting a mortgage rate in the 4% range?
It’s certainly not out of the realm of possibilities.
“Create a 4% mortgage: Senate Republicans are likely to introduce a provision that would encourage lenders to offer a 30-year fixed rate mortgage at 4% for a limited period of time. The loans would only be available to credit-worthy home buyers and homeowners seeking to refinance.”
http://money.cnn.com/2009/02/01/news/economy/Senate_stimulus_housing/index.htm?cnn=yes
sdnerd | February 2nd, 2009 at 9:04 amsdnerd,
Did you catch this at the end of the article?
“One of the ideas likely to influence Obama’s plan is a loan modification program put forth by FDIC Chairman Sheila Bair that has garnered support from lawmakers. That plan would require that lenders reduce housing payments for delinquent borrowers to 31% of gross monthly income.
Lenders could achieve that by lowering mortgage rates to as low as 3% for five years, before increasing at an annual rate of 1 percentage point until they hit the prevailing market rate. Loan terms could be extended as long as 40 years.
In exchange, Bair proposed the government would share up to 50% of the losses if a borrower who gets a modified loan ends up defaulting anyway. And it would help foot some of the servicers’ loan modification costs.”
* Basically push off all the debt to a later date, Give money to the deadbeats, (in the form of a loan reorganization) and finally when the current owners can’t sell for the amount their house is “worth” government picks up the tab. Yay! free money for everyeone!
shadash | February 2nd, 2009 at 9:30 am