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San Jose Weekly Mortgage Market Commentary 8/23/2009

The week that was Mortgage loan delinquency, borrowers 60 or more days past due, increased for the tenth straight quarter, hitting an all-time national average high of 5.81% for the second quarter of 2009, according to the latest data from TransUnion.com. This statistic is up 11.3% from the first quarter's 5.22% average. Sales of existing homes in July jumped at the fastest rate in 10 years. Sales of single-family homes increased 7.2% in July from a month earlier to a seasonally adjusted annual rate of 5.24 million units, the National Association of Realtors…continue reading →

July 09 Home Sales Trend in Bay Area

Sales hit 4 year high, Median price up Data Quick reported that Bay Area home sales rose last month to the highest level for a July in four years as deals above $500,000 continued to accelerate. The median sale price climbed above the prior month for the fourth consecutive month. San Jose Mercury News reported The median price of houses sold in Santa Clara County in July shot to $540,000 in July, the first time home prices have topped the half-million-dollar mark since this past fall, in a sign that buyers are purchasing…continue reading →

San Jose Weekly Mortgage Market Commentary 8/16/2009

The week that was Continued market volatility; the mortgage market regained some losses from the week before as interest rate markets swung wildly from one economic report to the next. Freddie Mac Primary Mortgage Market Survey® for 30-year fixed-rate mortgage (FRM) averaged 5.29 percent with an average 0.7 point for the week ending August 13, 2009, up from last week when it averaged 5.22 percent. Last year at this time, the 30-year FRM averaged 6.52 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.75 percent this week, with an average 0.6 point, up…continue reading →

CalHFA 5% Down Payment for San Jose First Time Home Buyers

California Housing Finance Agency (CalHFA) recently launched it's new program called Cal 30 - Conventional for First Time Home Buyers in San Jose, the San Francisco Bay Area and the rest of the state. This conventional first mortgage features a fixed interest rate, fully amortized loan over a 30-year term. It has a maximum Loan-to-Value (LTV) of 95%. Below are some of the other highlights of the program: Maximum Loan Amount -The loan amount is limited to the maximum Fannie Mae conforming loan limits. Currently, this is $417,000. Fannie Mae high balance loan…continue reading →

San Jose Weekly Mortgage Market Commentary 08/09/2009

The week that was Job losses were a lot less than expected; still 247K jobs lost with no real insight as the when it will finally flatten. The unemployment rate, expected to be up to. 9.7% fell to 9.4%, down 0.1% from June. Weekly jobless claims on Thursday fell by 38K to 550K filings for unemployment. Both series were double blows to the gut for the rate markets, and manna for the stock market. The week that will be The stock market is seen as a gorge that has to have some digestion,…continue reading →

FHA Streamline Refinance for Bay Area Residents

How to get FHA to FHA refinance with no Appraisal, Income or Credit verification If you live in the San Francisco Bay Area or rest of California state and if you currently have an FHA loan, you may be eligible for an FHA streamline refinance. This can help you lower your mortgage payment and mortgage rate. It could also help you move into a 30 year fixed loan from an Adjustable Rate Mortgage (ARM). And unlike a typical refinance, an FHA Streamline Loan doesn't require Appraisal, Income or Credit verification. This is arguably the easiest loan process out there. So how do you qualify for and what are the requirements for an FHA Streamline Refinance?
  • Your current mortgage must be an FHA Loan. Else your options are limited to going through a standard refinance which requires Income, Asset, Credit verificationn and also an appraisal.
  • Maximum Loan Amount is based on the lower of:
  1. Original Principal Balance, or
  2. The sum of existing mortgage balance (FHA Insured), Closing Cost, Pre-Paids to establish the impound account minus any up front mortgage insurance premium refund
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San Jose Weekly Mortgage Market Commentary 08/02/2009

The week that was Freddie Mac's Primary Mortgage Market Survey® (PMMS®) for 30-year fixed-rate mortgage (FRM) averaged 5.25 percent with an average 0.7 point for the week ending July 30, 2009, upfrom last week when it averaged 5.20 percent. Last year at this time, the 30-year FRM averaged 6.52 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.75 percent this week, with an average 0.6 point, up slightly from last week when it averaged 4.74 percent. A year ago, the 5-year ARM averaged 6.07 percent. Note that these rates are for loan amount…continue reading →

New Truth in Lending Requirement will Clog the Pipeline

Beginning on Thursday, July 30, 2009, the Truth in Lending Act requirements regarding initial and final disclosures to borrowers, the timing of when fees can be charged and when closings may occur will become effective. These new regulations lengthen the time needed to close loans in order to ensure that borrowers have enough time to consider their options and feel comfortable moving forward with a loan. The factors that may impact the closing date of a loan include: Closing may not occur until 7 business days after initial disclosures are sent to the…continue reading →

San Jose Weekly Mortgage Market Commentary 07/26/2009

The week that was Mortgage Loan Limits Extended: The House Appropriations Committee has approved an extension of the $729,750 loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) through September 2010. The committee also increased the lending and guarantee authority of FHA and Ginnie Mae, as requested by the Obama Administration. The Department of Housing and Urban Development appropriations bill authorizes FHA to insure $400B in single-family loans during fiscal year 2010, up from $315B in the current 2009 fiscal year, which ends Sept. 30. Mortgage Rates mostly unchanged:…continue reading →

Buying a Condo in Bay Area – It won’t be easy getting a mortgage!

A lot of surge in current real estate market in San Jose & rest of San Francisco Bay Area is being driven by First Time HomeBuyers. Some sources estimate that they now account for 50% of the market. A lot of First Time HomeBuyers end up buying condominiums since it fits into their budget. In this market of low property prices, you may be able to buy a condo for almost the same mortgage payment as the rent that you are paying. However, in last few months Fannie Mae & Freddie Mac have…continue reading →