Author bio section

I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

In the summary of Fed’s late-April meeting released yesterday, there were some important pointers to the economy:

Fed officials saw the economy contracting between 1.3% and 2% this year and the GDP was only expected to advance 2%-3% next year. The Unemployment rate is expected to end 2009 between 9.2% and 9.6%, higher than what officials expected in January. Note that for Santa Clara County the unemployment rate at the end of March 2009 was at 10.8% and for Alameda county was at 10.5%.

From housing industry perspective, the below 2 comments caught my attention:

  1. They are open to raising the amount of mortgage-related securities they are purchasing beyond the $1.75 trillion (yes you read that right!) already committed, and
  2. The Fed thinks “Housing might finally be approaching a trough”.

To statement #1, mortgage rates responded favorably and we saw improved rates in the afternoon. Also, what it tells us for future is that Fed is committed to reduce the cost of borrowing for mortgages.

In the local Silicon Valley market, houses priced below $500,000 (and priced well) are getting multiple offers and at times selling for way over listed price. When I last checked 82% of the property sales in Santa Clara county was in this price range. So if you are a first time home buyer and your price range is in that vicinity, time could be running out for you to get a great deal.

With mortgage prices at record low and some good deals still available, there was never a better time to buy. However, the clock is ticking. The $8,000 First Time Home Buyer Credit expires on Nov 30th 2009 (Read details in my other post on this topic) and the entry level housing trends are looking good to firm up sooner than later.

Related Posts

  • 90
    Home sales jumped in October, rising far more than expected as First Time Home Buyer Tax Credit offset fears about joblessness. Sales of existing homes increased by 10.1% to a 6.10 million annual rate from 5.54 million in September, the National Association of Realtors (NAR) said Monday. Total housing inventory…
    Tags: sales, credit, rate, buyer, market, mortgage, $, post, expected, time
  • 88
    Starting this month I will be writing about the monthly Home Sales/Real Estate trends in Bay Area. Look out for this update between 15th and 20th of every month. The update will be for month before. Data Quick reported that Home Sales in the Bay Area jumped to their highest…
    Tags: $, sales, price, market, real, estate, trends, time, buyer, seminar
  • 86
    Affordability Index has been dropping in Santa Clara county. California Association of Realtors (C.A.R.) measures First-time Buyer Housing Affordability Index (FTB-HAI) on a quarterly basis. This measures the percentage of households that can afford to purchase an entry-level home in California. The higher the index, more affordable it is for…
    Tags: buyer, santa, clara, rate, county, price, $, housing, mortgage, march
  • 84
    Data Quick reported that Bay Area home sales bucked the seasonal norm and fell last month from July, though they remained higher than a year ago for the 12th consecutive month. The region overall median sale price also declined as a greater portion of sales occurred in more lower priced…
    Tags: $, sales, real, estate, trends, time, buyer, seminar, santa, clara
  • 82
    Your weekly dose of economy and mortgage market news that affects mortgage rates for San Jose Home Home owners and buyers. The Week that was: Another bad week for the bond and mortgage markets. The 10 yr treasury note and mortgage rates have now increased 60 basis points in the…
    Tags: mortgage, year, rates, market, real, estate, trends, economy, pending, sales