From the Associated Press:
WASHINGTON —Average rates on fixed mortgages rose this week, the first increase in seven weeks. But mortgage rates remain near historic lows, boosting prospects for home sales this year.
Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan increased to 3.71 percent. That’s up from 3.67 percent last week, the lowest since long-term mortgages began in the 1950s.
The average rate on the 15-year mortgage, a popular refinancing option, rose to 2.98 percent. That’s up from 2.94 percent last week, also a record low.
The rate on the 30-year loan has been below 4 percent since early December. Low rates are a key reason the housing industry is showing modest signs of a recovery this year.
In April, sales of both previously occupied homes and new homes rose near two-year highs. Builders are gaining more confidence in the market, breaking ground on more homes and requesting more permits to build single-family homes later this year.
Low rates could also provide some help to the economy if more people refinance. When people refinance at lower rates, they pay less interest on their loans and have more money to spend.
Still, the pace of home sales remains well below healthy levels. Economists say it could be years before the market is fully healed.
Many people are still having difficulty qualifying for home loans or can’t afford larger down payments required by banks. Some would-be home buyers are holding off because they fear that home prices could keep falling.
The economy is growing only modestly and job creation slowed sharply in April and May. U.S. employers created only 69,000 jobs in May, the fewest in a year.
It was funny how this happened.
I’m doing my regular broker open house yesterday in Carmel Valley when this guy walks in with full camera gear. He identifies himself as being from the Associated Press.
I start thinking, if he is here to see me, then these guys are tracking me!
He said that he stopped by randomly – his boss said to get some real estate shots for today’s story, so he hit zillow while he was driving and my open house popped up as the closest.
I mentioned that whenever I see real estate stories, they always have other company’s signs, including stories in which I’ve been quoted. I asked him if he could get my sign into circulation…..and here we go!
Three cheers for good luck! 🙂 Did they leave your phone number intact in the published photo?
Congrats Jim!
It’s a little hard to read the last 4 numbers of your phone number, but if I squint…
Niiiice! (thumbs up)
Good work, JtR!!
Congrats Jim
I remember when my signs were in all the national papers/internet in 2008/2009 for the vegas REO articles and news.
With me it had the opposite effect 🙁
but thats OK. Good luck
Awesome!
“Chargers head coach Norv Turner and his wife recently purchased a second home for $1.2 million, this one in Mission Beach, according to San Diego County real estate records.”
http://www.utsandiego.com/news/2012/jun/14/chargers-coach-buys-second-home-12-million/
Could this be it?
http://www.sdlookup.com/MLS-120000047-2655_Ocean_Front_Walk_San_Diego_CA_92109
A raise in the rates would benefit the cash buyer at this time of low inventory. 🙂
I don’t think this slight raise will tip the scale though…
Norv bought at the very south end of MB and in the Lindbergh flight path, where he (or his kid) will be directly under the jets every morning and night.
Do the gangs still play basketball down there every weekend?
This is how low rates are.
So you take Jim’s latest listing in Encinitas, go back to May of 1999, when it was sold for $348k. Rates at the time was 7.125%. 20% down at 30 year fixed, mortgage of $1876 per month.
Now you take Jim’s current price of $629k, also 20%, and also 30 year fixed, monthly mortgage of $2260!
Now let’s adjust the monthly payment for inflation:
The $1876 back in 1999 adjusted for inflation is actually $2590, so the monthly obligation for a mid 300k house 13 years ago was actually more than the monthly obligation for a 630k house today!!!!!
How’s that for bargains?!
I declare a bubble in Carmel Valley when this house sells for $1.5M when the neighbor sold 4 months prior for $950k. $550K for an extra 1000 sf, and both back to a church parking lot…
http://www.redfin.com/CA/San-Diego/13343-Wendover-Ter-92130/home/6483094
previous sale
http://www.redfin.com/CA/San-Diego/13333-Wendover-Ter-92130/home/6483096
“Do the gangs still play basketball down there every weekend?
No of course not, its an election year 🙂