Saturday, May 26, 2007

Mortgage rates at 16 week high

Bankrate.com reports that "The benchmark 30-year, fixed-rate mortgage rose 10 basis points to 6.42 percent ... One year ago, the mortgage index was 6.69 percent; four weeks ago, it was 6.27 percent." This is the highest rate since the end of January.

Explanations for this increase are mixed.

To read more: Bankrate.com

Friday, May 25, 2007

California housing affordability stable

The California Association of Realtors® (C.A.R.) reports that "The percentage of households who could afford to buy an entry-level home in California stood at 25 percent in the first quarter of 2007, compared with 26 percent for the same period a year ago".

"The minimum household income needed to purchase an entry-level home at $480,670 in California in the first quarter of 2007 was $96,910, based on an adjustable interest rate of 6.3 percent and assuming a 10 percent down payment."

Named as the most affordable area was the High Desert region, and the least affordable area was Santa Barbara.

To read more: CAR Housing Affordability

Wednesday, May 16, 2007

NAR expects "soft landing" for real estate market

We keep hearing that term ... "soft landing" ...

"The NATIONAL ASSOCIATION OF REALTORS® still expects more than 6 million existing-home sales in 2007, but stricter lending standards and a decline in subprime mortgage origination have contributed to somewhat lowered expectations compared with earlier forecasts, according to the latest projections from NAR."

And, what is forecasted for interest rates?

"The 30-year fixed-rate mortgage should rise slowly to 6.5 percent by the fourth quarter, NAR predicts. Last week, Freddie Mac reported the 30-year rate was 6.16 percent."

To read more, go here: National Association of Realtors