Private Mortgage Insurance News
01/05/07 (04:53 PM)

The federal government has passed legislation that would allow for Private Mortgage Insurance, also known as PMI, to become tax deductible effective January 1, 2007. The benefit will be extended to those whose personal adjusted gross income is less than $100,000 a year.

Mortgage News Commentary
01/05/07 (04:23 PM)

Most analysts were surprised by a higher than expected new jobs report. Treasuries traded higher in overnight trading, but fell sharply on a strong payroll report. December payrolls rose a stronger than expected 167K as revisions to the prior two months added another 29K. The unemployment rate held at 4.5% as hourly earnings jumped 0.5%. Treasuries have bounced up off the lows of the day. Yields have eased slightly, but not enough for any price corrections from lenders. Investors have been betting that the Fed will start lowering rates this year as the economy keeps cooling. But strength in the labor market could raise the threat of inflation and keep those cuts at bay until later in 2007. The Fed has held the target for its key short-term interest rate steady at 5.25 percent at its last four meetings, and minutes from the Fed's latest meeting showed policymakers are still concerned about rising prices.

Rates are: Moving Higher Rate Volatility: High
Long Term (4-6 weeks): Up Short Term (1-2 weeks): Up

Mortgage rates on the rise
01/04/07 (11:28 AM)

Today the mortgage bankers Association announced that the average 30 year fixed rate was 6.22%, this is up from last week's average rate of 6.12% and is largely up from last month's average 30 year rate at just below 6%. With current market dynamics, it's anyone's best guess of where the interest rate will go; however, with the interest rate at a near all-time low, it's most likely going to go up. Individuals wishing to own San Diego real estate may find it more difficult in the future with potential high rates. Real estate prices have gone down over the last 18 months and just recently had a slight uptick.

San Diego Real Estate Market
01/01/07 (10:16 PM)

Resale home sales have picked up from the prior months. The San Diego housing market has moderated to become a buyers market. Slight decreases in the interest rates have helped buyers' sitting on the fence, jump back into the market. With loads of inventory, low interest rates, and home pricing that in some areas have dropped as much as 30%, homebuyers are unlikely to find a more opportune time to purchase their dream home. The current inventory in San Diego County is at 14695 detached home and townhome/condo listings, this inventory number is down by 38% from prior months.

Buyers wishing to purchase a home in the San Diego market will find more hospitable conditions and a much better chance to find their dream home. However, With inventory decreasing, buyers wishing to work a deal should jump off the fence and jump into their dream home.

Another factor that may foil a buyers plan to wait for further price decreases is the interest rate. Increased interest rates are very likely on the horizon and increased rates tend to have a much greater impact on increasing mortgage payment amounts than the price paid for the home.

Flippers & speculative investors will find the increased market time to be a major monkey wrench in their investing plans.

As far as the bubble . . . No bubble here! The current conditions should tend to even out to a more balanced market - So don't miss out on the current low interest rates and low payments. Remember, as with any investment the time to buy it when others don't want to buy.

For more information on the San Diego real estate market, foreclosure homes, or any aspect of real estate, please contact Paul Miller @ 1-800-996-7285 or visit my web site at www.paulmiller.net.

About Paul Miller: Paul has 22 years of experience as a full-time realtor. Since 1985 Paul has worked hard to become one of San Diego's leading Realtors. Ranked in the top 8% of Prudential Realtors nationwide, Paul's only goal is to serve your real estate needs with knowledge, honesty and integrity and a no-nonsense approach to your real estate transaction and to make the dream of owning a home your reality.

Welcome to my blog!
12/28/06 (10:06 AM)

Welcome to my blog! Here you will find pertinent real estate related info to assist you in your purchase and/or sale of a home, as well as other fascinating tidbits I find to enhance your online research experience.

Please check back often, and be sure to share your thoughts by adding comments!