Thursday, June 4, 2020

Freddie Mac: Currently Low Mortgage Rates

Directly from the web site of Freddie Mac, the results of the Primary Mortgage Market Survey® (PMMS®):

  • 30-year fixed-rate mortgage averaged 3.15 percent with an average 0.8 point for the week ending May 28, 2020, down from last week when it averaged 3.24 percent. A year ago at this time, the 30-year FRM averaged 3.99 percent.  
  • 15-year fixed-rate mortgage averaged 2.62 percent with an average 0.7 point, down from last week when it averaged 2.70 percent. A year ago at this time, the 15-year FRM averaged 3.46 percent.  
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.13 percent with an average 0.4 point, down from last week when it averaged 3.17 percent. A year ago at this time, the 5-year ARM averaged 3.60 percent.
Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

Francis
Current mortgage rates   - low, with a lot of volatility.

Be sure to check this fabulous new listing in Palo Alto at: 3228 RossRd, near Midtown! 

Thursday, May 28, 2020

Update on the State of Real Estate in California and the Bay

Noted among the regular updates on the California real estate markets, from the California Association of Realtors, as of 5/27/20:

This was the first week in several months where it was more difficult to find negative impacts on the economy and housing market than it was to find signs optimism. And yet, even as the economy begins to heal, it is important to temper that hope with the difficult truth: even if the economy continues to gradually reopen and the leading indicators continue to improve, the toll of the COVID-19 pandemic have been unprecedented and it will take time for us t
o recover. This is particularly true in a world where the new normal will likely look significantly different that our previous definition. On top of that, we will face both ongoing restrictions and a big learning curve on how to operate in a pre-vaccine world.
Consumer confidence finds bottom: After suffering from its worst decline in April in nearly 50 years, the Conference Board’s Consumer Confidence Index ticked up slightly in May. The index remains below 100 indicating that consumers are still pessimistic, but it is a slightly lower level of pessimism than in April. This supports the conclusion from a variety of other indicators that the economy and market found a bottom in mid-April and has begun to stabilize after roughly 2.5 months of sheltering in place.
Mortgage applications regain lost ground: Homebuyer demand is beginning to show signs of life as well as the U.S. recorded its 6th consecutive increase in new purchase-money applications. That brings the number of mortgage applications back above the pre-crisis levels of late February. .... California saw its 7th consecutive weekly gain in mortgage applications as well, though it also saw a bigger contraction in the immediate aftermath of the downturn, so it remains roughly 2% below 2019 levels.
Buyer demand coming back with more showings: Buyer demand is also expressing itself in the form of increased showings. Last week, the 7-day moving average of showings posted a 38% increase, which brought the index back to pre-outbreak levels. And although last week’s levels were still roughly 4% below 2019 levels, home showings have improved dramatically from mid-April when showings were falling by nearly 75% on a weekly basis and were well below 2019 levels.
Francis
Home Valuation tool
Current mortgage rates   - low, with a lot of volatility.

Be sure to check this fabulous new listing in Palo Alto at: 3228 RossRd, near Midtown! 

Monday, May 25, 2020

Prices May Stay Pretty Stable in 2020


Prices may stay pretty stable in 2020?

Many clients ask me which direction prices will trend this year with the pandemic.

Some expect prices to go down, while others encounter multiple offers, at least here in the Silicon Valley.
For now, and just considering our local area, one thing is sure: the number of transactions has been cut roughly in half. But how prices will fare will depend mostly on the job market in both Santa Clara and San Mateo County.  And what we see a lot of is remote work, not so much lay offs (although unfortunately we will see some of that happen way too much).

In this article from Clare Trapasso, senior news editor of Realtor.com, the prediction is that prices will remain steady in 2020, because the inventory of homes has also gone down dramatically.  In the Silicon Valley where properties are still fairly scarce, my experience is that prices are currently soft, but this is compared to an early expectation of a strong price increase at the beginning of the year.  It is also not the case for prime, very desirable properties (i.e. very remodeled, or excellent location, or large lots, or just "rare finds").
Diana Olick, from CNBC, also reports a surge of multiple offers nationwide, with a majority of offers being made in a competitive environment in many local markets, from the East to the West.

Thank you for reading,

Francis
Home Valuation tool
Current mortgage rates   - low, with a lot of volatility.

Be sure to check this fabulous new listing in Palo Alto at: 3228 RossRd, near Midtown! Select "view full screen" at the bottom right for the best experience.


Tuesday, April 14, 2020

Impact of the Current Situation on Real Estate Activity

My clients ask: what is the current impact of the current situation on real estate activity?

The California Association of Realtors issued an update on the impact of Covid 19 which is pretty comprehensive.  This being said, many of my clients are asking me what is the impact locally.
The situation changes day to day, literally, with new changes in the regulations and limitations.

As of now, real estate is deemed an essential activity at the Federal level, and also at the California level, although many aspects of the regular activities of a Realtor are very strictly regulated.  Without going into the details, interactions with the public are to be limited to the extreme, the essential, and when they happen it has to be with all mandated precautions – which is of course very good, and welcome.

The market? About the same at this point: there are much fewer properties on the market now, but there are fewer showings for obvious reasons.  It is an excellent time to sell a property, and also a good time to be actively looking for a home.  Precise protocols have to be put in place so that all parties are comfortable with the ways to proceed, and follow the advisories.  Will prices suffer or not?  A little too early to tell in my opinion.  I do expect the number of transactions to be smaller in April though.
What is also good to know is that nearly everything can be done virtually if you are seeking to sell your property, or if you are thinking of a purchase. Facetime or call or text me should you have any questions regarding the process in this new environment.

Thank you,
Francis
Home Valuation tool
Current mortgage rates   - low, with a lot of volatility.


Thursday, April 9, 2020

Finding Ways to Stay Positive in these Challenging Times

Dear friends, clients,

In these challenging times, I have personally set a goal to stay positive and spread kindness, as everyone goes through some kind of anxiety. Here are a few simple, effective ideas to make sure we see the silver lining each day.

  • Get outdoors. Walk, garden or just take time to reflect and smell the roses.
  • Use FaceTime, Teams or any other social media way or communication, or pick up the phone to check in on friends, family, neighbors and colleagues.
  • Spread some kindness each day. Nextdoor lets you see what others in your community may need. Give back – helping others helps you too.
  • Have a laugh! Share some jokes or funny videos to alleviate stress and lighten up with laughter.
  • Be grateful. Leave a reminder in your phone each day to give thanks for all the good in your life.
  • Schedule some downtime from social media and the latest headlines. Quiet time is essential, and you might find a break from the headlines brightens your day.
Remember, today's issues are temporary, and hopefully will bring long lasting lessons. How can we help bring a better tomorrow? I believe we can stay strong and persevere. Please feel free to contact me for any reason – whether you have real estate questions (yes, most things can be done remotely), or you just need someone to talk to. We'll get through this together!  


Thank you for reading, and stay safe!


Francis
My Home Valuation tool
Detailed, local trends etc...
Current mortgage rates   Time to refinance? Give me a call.

Sunday, March 22, 2020

How to disinfect your house in these times of stress?

An important question nowadays: what is the best way to disinfect your home, as we all face these dire circumstances?

Christina Hoffman, content manager for HouseLogic, gives some useful tips on the matter, which I thought were worthy of showing on this blog.

From her article, a few things worth mentioning:

- The Center for Disease Control recommends a bleach solution for disinfecting high-touch surfaces
- Recipe:  for a quart of water, 4 teaspoons of bleach,
- bleach can grow too old, and loose its efficacy,
- bleach cannot be mixed with just anything:  just water,
- and something I didn't know: some disinfectants can make the virus(es) resistant.

Please stay safe and in good health, and most importantly, stay informed.

Warm regards,

Francis

My Home Valuation tool
Detailed, local trends etc...
Current mortgage rates   Time to refinance? Give me a call.

Tuesday, February 4, 2020

Easy to Buy a Home in California?

How easy is it to buy a home in California?

According to an August 2019 Google poll that the California Association of Realtors conducted, this is the way it is perceived:

Click to see bigger

Actually, from my personal experience in different countries, it is really much easier to purchase and sell a home here.  It also takes a lot less time from start to finish.

Thanks for reading, call or text me for any question about the process.

Francis
My Home Valuation tool
Detailed, local trends etc...
Current mortgage rates   (low!)

Friday, January 24, 2020

Winter House Hunting Can Pay Off.


Winter House Hunting Can Pay Off.

Everyone knows the prime house-hunting seasons are spring and summer, when the grass is green, tree foliage is full and flowers are in full bloom. But that doesn’t mean you can’t land a hot deal during the winter. Here are a few reasons why shopping for a home in the winter might be a smart decision.

Less competition. While cooler temperatures in many areas may keep many people inside, if you decide to take the plunge, you won’t have to compete with as many buyers. That means less pressure to make a quick decision to avoid losing out on the home of your choice, and more time to check out additional properties, consider all of your options and negotiate with sellers.

Sellers are more motivated. Many people who put their home on the market during the colder months are anxious to sell it as fast as possible. Perhaps they’re relocating for a new job or need money for a down payment on another property. With fewer would-be buyers, sellers get less attention and fewer offers, making them more motivated to reduce the price and close the deal.

Quicker closing. Real estate agents, mortgage lenders and title companies have fewer clients in the winter, which can result in a swifter closing. And remember, you can always help speed up your home-buying process by knowing how much you can afford, getting pre-approved for a loan and having a good down payment ready.

Gain more insights. Viewing homes on cool, gray days puts properties in a different light – picture bare trees and no flowers – so if you love a property, imagine how wonderful it will look when colors are popping in the spring and summer. And unlike a sunny 75-degree day, you’ll be able to tell if a house is drafty, a sure sign of poor insulation.

Francis

Home Valuation tool
Current mortgage rates   - low.  It's a good time to buy now