I am late reporting this, but if you use this blog to get all of your news, you’re probably better off watching the Daily Show with John Stewart. Although I hear newspapers and the internet are good sources for news too! 🙂
The Good News: HUD just rolled out the new limits that will apply to conforming loans, giving Californians a big increase in their conforming loan limits from $417,000 to $729,750!
The Bad News: According to Monica Di Perna of Guarantee Mortgage:
Mortgage rates are rising as we move into March. This will probably motivate more prospective home buyers and other borrowers to lift themselves off their fence-sitting position and take action before rates rise further. The rate for a 30-year fixed-rate mortgage now average 6.24 percent, with 0.5 point (fees), according to Freddie Mac, a major government sponsored buyer of existing mortgages. Last year at this time, the rate was 6.18 percent. The average rate for a 15year fixed mortgage is 5.72 percent.
“Long-term fixed mortgage rates are trending up, bringing rates on 30-year and 15-year fixed-rate mortgage back to their levels of last November,” said Frank Nothaft, Freddie Mac’s chief economist.
So, while you’ll soon be able to get a larger loan at an overall lower rate, the rate for the entire loan as been creeping slowly upward. Meanwhile – prices in SF still aren’t falling in the hot neighborhoods where the majority of well qualified buyers want to live.
Of course, things might change if the Fed does another rate cut during their next meeting on March 18th – and if rates do drop, then it’ll be just in time for the spring buying season.
If you have questions about how the HUD limits or mortgage rates affect your ability to buy a home in San Francisco, or how the market affects your home’s chances of selling your home, don’t hesitate to contact me. I love to talk real estate.