I had guessed that sales would drop 20% this year, but with mortgage rates being so cooperative it looks like we’ll be fine.
Detached-home sales in San Diego County’s north coastal region for the first seven months of 2019 are only down 3% year-over-year (1,642 vs. 1,693 in 2018). We’ll have a few more reporting over the next few weeks which should pull us within 1% to 2% of last year.
Mortgage rates spiked during the second half of 2018, helping to cause a 10% drop in NSDCC sales in the last five months of the year, compared to August-December 2017 (1,121 vs. 1,242 in 2017).
It will be hard to under-perform last year with rates about 1% less!
10-yr bond down to 1.88% this morning, which should pull mortgage rates into the mid-3s next week. The punchbowl isn’t going anywhere!
How much of the Coastal California loan universe is not “jumbo?”
How much of the Coastal California loan universe is not “jumbo?”
If we’re talking houses, I’d say less than 10%.
But there are people who have bad credit or who are tougher to qualify that will use a big down payment and get an easier-to-qualify FHA loan.