Mixed news for those who are home buying
- According to the Wall Street Journal, jumbo mortgages for those who are home buying are making a comeback. Smaller & regional lenders are issuing more new jumbo loans and also doing more refinances. This change could help bolster home buying. Depending on which area of the country (high cost or not), jumbo loan limits begin at $417,000+ and $729,750+. For the most part in our local Silicon Valley area it is the latter.
- In other news, in a strange twist reported by SmartMoney, those who went to buy a house in 2008 who took advantage of the home buying credit may have to repay it over the next 15 years, while those who took advantage of the home buying credit in 2009 and 2010 probably won’t.
- The moratorium on foreclosures nationwide definitely resulted in a slowing of home buying in September.
- The home price index in August showed a .6% uptick from the previous month, though down 1.5% year over year. A mixed report for those who are home buying.
- According to the San Francisco Chronicle, the nation’s homeownership rate remained at its lowest in more than a decade, hampered by a rise in foreclosures and weak demand for home buying.
- And the Los Angeles Times reported that foreclosure activity is up across most U.S. Metro housing market areas. Chicago and Seattle housing market areas shouldered the worst of the downturn.
Housing market statistics
- In our local Silicon Valley housing market, as far as Santa Clara County property goes, there are about 3392 single family homes on the market…about a 3 1/2 month supply if no new places came on the market. This number has been rising.
- The Consumer Confidence Index put out by TThe Conference Board, which had declined in September, slightly increased in October to 50.2 (1985=100), up from September’s reading of 48.6, the Conference Board recently reported. Consumers’ assessment of current conditions was somewhat mixed in October. Those claiming business conditions are “bad” decreased to 41.9 percent in October compared with 46 percent in September, while those claiming business conditions are “good” increased to 8.5 percent in October compared with 8.2 percent in September. Consumers’ appraisal of the labor market was less favorable in October, with those claiming jobs are “hard to get” increasing to 46.1 percent from 45.8 percent and those stating jobs are “plentiful” decreasing to 3.5 percent compared with 3.8 percent in September. Very obviously, the job market directly affects the housing market and whether people are home buying or not.
Mortgage rates: Week ending 11/04/2010 30-yr. fixed: 4.24 Fees/points: 0.8% 15-yr. fixed: 3.63% Fees/points: 0.7% 1-yr. adjustable: 3.26% Fees/points: 0.7% (Source: Freddie Mac)
Housing Market Musings uses California Association of Realtor’s CAR Newsline and Market Matters for compilation, as well as various other news publications & housing market statistics from Chris Alston, managing CEO at Keller Williams Cupertino.
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