RTC Mortgage Blog

Good News-Home Sales & Rates

July 29th, 2010 9:21 AM by Richard T. Cirelli

Good News for California....

According to the Commerce Department, sales increased by a solid 24% from May to June in California. That still leaves us with a very weak level of sales, but the turnaround may prove meaningful.

The median selling price of a home in California, according to the California Association of Realtors, gained 13.6% May to June, resulting in a median price of $311,950. While that is a great distance from the price levels reached during the heat of the real estate boom, it is surely a move in the right direction. At the same time, the number of existing home sales in the state declined by only 4.2%, a gentle slowing that should cause no concern.

This is an indication of what it might look like when the $8,000 and $6,500 homebuyer tax credits finally ceases to be much of a factor in the markets. People aren't going to refrain from entering a transaction because they'll no longer get a check for $8,000 for buying something.

So we're beginning to get an idea of the health of the real estate market, which is probably better than most analysts have been declaring. It is beginning to appear that the California population is ready to buy. Doing so with such low rates as fuel is surely better than what most analysts had forecast many months ago.

And Speaking of Low Rates.

Jumbo loans are back in full force. I'm astounded at the great rates for loans of $1,000,000 and up. Look at the rates below for a sample. And, I have lenders going to $4,000,000 and beyond. Interest-Only loans are available too.

More Good News..$729,750 Limit to Stick Around?

House and Senate committees have approved Department of Housing and Urban Development appropriation bills that extend the $729,750 loan limit through September 2011. Remember that this increase in the Fannie Mae/Freddie Mac limits was a temporary fix for the high-priced housing markets only and was scheduled to drop back to $625,500 at the end of the year. Most of the nation is stuck with a maximum limit of $417,000. Orange and Los Angeles counties are at the maximum of $729,750 but that does not hold true for all of California. For example, San Diego's limit is $697,500. Call me if you need to know the limit for other counties.
Posted in:General
Posted by Richard T. Cirelli on July 29th, 2010 9:21 AM



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