Mortgage rates continue to hold steady at all year lows with a mild chance of improvement. I believe this will be short lived. The weak economy driven by high unemployment, lack of sufficient new jobs to make a difference, the Feds decision yesterday to not continue their subsidy of low rates methods (Bond buying), trouble in Greece, and increased inflation is making the stock market nervous which is helping mortgage rates. There is a strong movement by those that don’t currently own, and investors to take advantage of the ridiculously low priced homes with these rates and there is starting to be bidding wars between them. This should only get worse in the future once the economy gains some footing. The cost of home ownership has never been lower.
Effective 9/30/2011, the temporary “High Cost Areas” Conforming Loan limit is set to expire. For San Diego County that limit will decrease from $697,500 to $546,250. This affects a substantial percentage of homes particularly in the coastal areas. Mortgage rates above and below this level are typically a ½% difference and the down payment requirement goes from about 10% up to 20%. The cost of waiting is going to get real expensive for both buyers and seller.
Jeff Olson
NMLS 235248
(858) 204-7373 cell
(760) 479-1803 fax
Host of "REAL ESTATE RADIO" Saturdays
Noon to 1:00 PM ON KPRZ AM 1210
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