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Morro Bay (Harbor 6)

Central Coast Real Estate (Part 1): Third Quarter Overview

Central Coast home prices continue to rise, but through the first 9 months of 2014, sales data is beginning to point to something of a slowdown.

Continue reading “Central Coast Real Estate (Part 1): Third Quarter Overview” »

San Luis Obispo

Central Coast Real Estate (Part 2): City-by-City Breakdown

Learn more about Central Coast real estate, including: which cities are the most affordable? Which cities have the “hottest” real estate market? Which cities are the most expensive?

Continue reading “Central Coast Real Estate (Part 2): City-by-City Breakdown” »

San Luis Obispo Cal Poly

The MyCommunityMortgage Program: Discounts for Middle-Income Buyers

Middle-to-low income homebuyers who currently do not own a home are eligible to receive a significant price break on their loan under the newest program offered by Central Coast Lending, Fannie Mae’s MyCommunityMortgage program.

Continue reading “The MyCommunityMortgage Program: Discounts for Middle-Income Buyers” »

Recent Articles

2
Mar

Mortgage Matters Radio: February 28 (’15)

Guest: None

Central Coast Lending SoundCloud (full episode downloads). February 28, 2015 (link to full episode).

2
Mar

CCL Market Update: Housing Market, Consumer Sentiment, Gas Prices, Mortgage Rates

New home sales for January did better than expected, selling at an annual pace of 481,000. This is only slightly down from December’s 482,000, which had surged 8.1% from the month prior.

Existing home sales fell 4.9% in January to 4.82 million, the lowest annual rate since last April. According to the National Association of Realtors, homeowners are tending to stay in their homes an average of 10 years, longer than the previous long-term average of 7 years. Despite the drop, existing home sales are still up 3.2% from this time last year. The NAR forecasts that total existing home sales for 2015 will be around 5.26 million, which is about 6.4% above 2014.

Pending home sales, a leading economic indicator, rose 1.7% in January to 104.2, and was 8.4% higher than the January 2014 level of 96.1. This marks the 5th straight month of year-over-year gains for pending sales.

House prices are continuing to rise, according to data from the Federal Housing Finance Agency. FHFA house prices rose 0.8% in December driven by job growth and tight supply.

In California, total home sales increased by 2% year-over-year, while the median price of those homes increased by 6.5% to $376,000.  In SLO County, the total number of homes sold decreased by 2.3% in January.  Sales of existing homes actually increased 12.1%, however, new home sales were down 40%.  The overall median home price for January increased 12.3% to $454,500.

Consumer confidence was at a 7-year high in January, but has since been steadily decreasing. The monthly consumer confidence index for February fell 7.4 points to 96.4, down from 103.8 in January. In a separate report, consumer sentiment saw its first decrease in 7 months, dropping to 95.4 this month from January’s 11-year high of 98.1. Recent fuel gains are likely the cause for consumer negativity, as gas prices are up 31-cents per gallon. The average cost of gas was reported to be $2.37/gallon on Thursday, up from $2.03/gallon on January 25, which was the cheapest since 2009.

This week is another busy week of potentially market-moving economic data! Some of the most notable items include a trio of manufacturing reports, the Beige Book, and the employment reports highlighted by the Unemployment Rate.

Mortgage Rates

Rates for almost all loan programs have decreased this week, with the exception of the 15-Year Conventional and 30-Year FHA programs. The largest decrease was seen for Manufactured FHA loans at 3.375% (4.966% APR), down 1/4-point from last week’s rate of 3.375% (5.179% APR). All of the Government Loan Programs returned rates similar to two weeks ago, with the exception of the 30-Year FHA, which has seen no movement in the last 7 weeks.

Loan programs remain significantly lower than this time last year: The 30-Year Conventional is 3.625% (3.812% APR) compared to 4.375% (4.421% APR) in February 2013, and the FHA 203k is 3.500% (5.060% APR) compared to 4.250% (6.242% APR) one year ago.

If you are interested in lowering your interest rate, removing mortgage insurance or shortening your loan term, call us at 805.543.LOAN or begin the process by applying online (Apply Now!). Prequalification for a refinance or purchase is always free.

25
Feb

Mortgage Rate Update (February 25, 2015)

For the week of February 23 through February 27

Conv. Rates 2.25

Government Loan Programs

Spec. Rates 2.25

Rates for almost all loan programs have decreased this week, with the exception of the 15-Year Conventional and 30-Year FHA programs. The largest decrease was seen for Manufactured FHA loans at 3.375% (4.966% APR), down 1/4-point from last week’s rate of 3.375% (5.179% APR). All of the Government Loan Programs returned rates similar to two weeks ago, with the exception of the 30-Year FHA, which has seen no movement in the last 7 weeks. Loan programs remain lower than this time last year: The 30-Year Conventional is 3.625% (3.812% APR) compared to 4.375% (4.421% APR) in February 2013, and the FHA 203k is 3.500% (5.060% APR) compared to 4.250% (6.242% APR) one year ago.

Nationally, rates have increased slightly in February after a sizable drop in rates in December and January. This movement is illustrated in the graph below (as updated by the weekly Freddie Mac rate survey):

Freddie Mac yearly 2.25 30-Year Fixed (History)

 

Take advantage of these rates while they remain low! Give us a call at 805.543.LOAN for a free, customized rate quote!

Calculation Notes

  • Mortgage rates assume purchase of a single-family, detached, owner-occupied, residential property.
  • Mortgage rates assume borrower credit score of 760 and a Debt-to-Income ratio of 35%. Rates for conventional loan programs assume a loan-to-value of 60%.
  • Loan amount is $417,000 for all programs (appraised value of $522,000), except for the high balance ($561,200 loan and $722,000 value), and Jumbo ($700,000 loan and $1,000,000 value)
  • Mortgage rates and APR subject to change
  • 30-year fixed, 15-year fixed, 30-year high balance, Manufactured, Jumbo
  • FHA, FHA 203k, Manufactured, USDA, VA
25
Feb

ListHub to Stop Supplying Listings to Trulia

ListHub recently announced that they would no longer be supplying listings data to Trulia, the nation’s second-most visited real estate search portal, starting February 26, 2015. ListHub, which collects listings data from more than 560 multiple listing services, decided to terminate its syndication agreement with Trulia following its acquisition by Zillow.

ListHub was already beginning to move in a different direction, and was on track to stop supplying listings to Zillow in April. In January, Zillow announced that they could not come to an agreement with News Corp—which controls realtor.com’s Move Inc., the owner of ListHub—over a syndication agreement renewal. As a result, Zillow stated that they would be looking into obtaining listings directly from brokers and multiple listing services. As of February 26, this decision by ListHub puts Trulia in the same boat.

“This action is a result of the completion of Zillows acquisition of Trulia this week, and the upcoming dissolution of ListHub’s syndication relationship with Zillow this April,” said ListHub General Manager Celeste Starchild in a statement on the recent decision.

Zillow spokeswoman Katie Curnutte characterized ListHub’s decision as “sudden and unilateral. She went on to say that the decision “underscores what we’ve been saying all along—it’s critical for multiple listing services and Realtor association boards to work directly with the largest real estate websites, like Zillow and Trulia, to ensure their sellers’ listings can be seen by the largest audience of homebuyers.” According to Curnutte, multiple listing services “should not outsource something as important as the online marketing of their members’ listings (and the millions of sellers they represent) to third-party intermediaries like News Corp.

Despite Zillow’s statement that it gets most of its listings from sources other than ListHub, it has been working on signing direct-feel agreements with multiple listing services and brokers in an effort to sidestep losing access to information on hundreds of thousands of listings when their ListHub agreement ends.

Starchild noted that ListHub will continue to provide listings to 158 “industry-friendly” websites for the more than 80,000 brokers it serves nationwide. “ListHub also will be focused on driving the interoperability of leading technology solutions and on providing the industry’s most complete and actionable metrics about listing performance,” she added.

In a recent letter to its multiple listing services customers, ListHub said that is would continue to accept analytics in order to provide reporting for the Zillow network in the ListHub consolidated dashboard with all other publisher sites.

These changes with Zillow and Trulia emphasize the importance of using local realtor websites that utilize a direct feed from the local MLS.  These have been, and will continue to be, the most accurate home listing search engines available to consumers.  Some websites, like SLOCountyHomes.com, also provide accurate sales statistics compiled from the same local MLS feeds into easy to understand graphs and charts.  The accuracy of this information is imperative for the consumer to understand the value of local real estate.

Listen to the “Mortgage Matters” Radio show from February 21 where Central Coast Lending’s Dan Podesto and Mike Poyntz and Patterson Realty’s Keith Byrd discuss the recent ListHub-Trulia decision.

23
Feb

Mortgage Matters Radio: February 21 (’15)

Guest: Keith Byrd, Patterson Realty

Central Coast Lending SoundCloud (full episode downloads). February 21, 2015 (link to full episode).

23
Feb

CCL Market Update: Unemployment Claims, Housing Starts, Loan Programs, Mortgage Rates

Jobless claims fell more than expected last week, dropping by 21,000 to 283,000, and nearly reversing the spike of 25,000 from the week before. The four-week average in the number of Americans filing new claims for unemployment benefits is down for the fourth straight week, down 6,500 to 283,250, and the lowest level since early November. Analysts did comment that the shorter week due to the President’s Day holiday may have contributed to the unexpected decline in claims, but that the trend continues to point to a strengthening labor market.

American consumer confidence is continuing to improve. Consumers’ outlooks on the U.S. economy climbed from 38.1 to 38.9 over the past week, according to the weekly survey by Bloomberg. Only 26% of Americans surveyed this month believed that the economy is getting worse, and 35% said the economy is improving, the highest in more than four years. January payrolls had their best three months of job growth in 17 years, indicating that the improvement in the job market is a large contributor to the improving consumer outlook.

Housing starts are down slightly this month; the February index is 55 compared to 57 in January. Previously, January housing starts saw a decline of 2.0% after a 7.1% jump in December. This is due largely to the weak number of single family starts, which is chiefly effected by the lack of first-time buyers in the market, especially younger buyers.

Heading into next week, expect updated reports on existing and new home sales, as well as unemployment claims and retail sales numbers.

Loan Programs

A new rule change eliminating the “prepayment penalty” for FHA borrowers recently went into effect on January 21. The rule change, announced by the FHA back in August 2014, states that for new FHA loans, interest cannot be charged to the borrower beyond the payoff date.

Read the full article on the new rule here.

 

Mortgage Rates

Mortgage interest rates rose to the highest level so far this year. According to Freddie Mac, the national average for a 30-year fixed mortgage is 3.76%, up from 3.69% last week, and the average 15-year rate increased from 2.99% to 3.05%.

Central Coast rates for almost all loan programs have also increased this week, with the exception of the 30-Year High Balance and 30-Year FHA programs. The largest increase was seen for Manufactured FHA loans at 3.625% (5.179% APR), up 1/4-point from last week’s rate of 3.375% (4.966% APR). Overall, loan programs remain lower than this time last year. The 30-Year Conventional is 3.750% (3.812% APR) compared to 4.375% (4.421% APR) in February 2013, and the FHA 203k is 3.625% (5.207% APR) compared to 4.250% (6.242% APR) one year ago. Although rates have risen slightly over the last couple of weeks, they remain substantially lower than last year.

Call us at 805.543.LOAN for a free personalized rate quote!

19
Feb

City-by-City Breakdown: 2014 Fourth Quarter Update (Part 2)

In this section of our Fourth Quarter Real Estate Report for 2014, we will look at each city within San Luis Obispo County, and answer questions such as: Which cities had the most home sales in 2014? Which cities had the least? Which cities are the most expensive, and conversely the least expensive?

 

If you’d like statistics and real estate analysis for San Luis Obispo County as a whole, read Part 1 of our 2014 Q4 Update. Click here for more.

 

In comparing 2013 to 2014, we learned that most of the cities in San Luis Obispo County saw an increase in their median sales price. At the high end, Cayucos had its median price jump 30.30% between 2013 and 2014. On the other end of the spectrum, the median price for Avila Beach dropped by 8.33%. It should be noted that both Cayucos and Avila are small beach communities with a limited number of sales which contribute to more volatile fluctuations in median home price. Median Price Mvt 2013-2014

As we look more closely at the city-by-city sales data for 2014, consider the following statistics:

Cities with the fastest moving markets:

  • Grover Beach: 51 Days On Market (DOM)
  • Santa Maria: 57 DOM
  • San Luis Obispo: 60 DOM
  • Los Osos: 61 DOM

 

Cities with the slowest moving markets:

  • Solvang: 210 DOM
  • Santa Ynez: 205 DOM
  • Cayucos: 136 DOM
  • Cambria: 104 DOM

Grover Beach and Santa Maria homes averaged the least amount of time on the market, most likely due to their more affordable home prices. Similarly, Solvang and Santa Ynez are “slowest” because their home prices are much higher.

 

Cities with the most home sales:

  • Paso Robles: 530
  • Atascadero: 324
  • San Luis Obispo: 323

Home Sales compare to 2013 graph

The North County experienced the largest jumps in the number of home sales compared to 2013, with Atascadero and Paso Robles rising 68 units and 46 units respectively. This is evidence of the demand for affordable housing in San Luis Obispo County.

 

Cities with the least home sales:

  • Santa Margarita: 12
  • Avila Beach: 18
  • Buellton: 35

Home Sales compare to 2013 graph 2

Grover Beach, Pismo Beach, Santa Margarita, Santa Ynez, and Solvang all experienced losses in the number of homes sold compared to 2013. The biggest decrease came from Pismo Beach with a loss of 17 units, followed closely by Santa Ynez with a loss of 13 units. Again, the demand for affordable housing is a huge factor here.

 

Most Affordable Cities:

(Median Sales Price)

  • Santa Maria: $339,900
  • Oceano: $383,000
  • Paso Robles: $387,450

2014 Median Home Price by City- Least Expensive graph

 

(Price / Square Foot)

  • Santa Maria: $184.67
  • Paso Robles: $230.40
  • Santa Margarita: $235.32

2014 Median Home Price by sq foot- Least Expensive

Santa Maria continues to be the most affordable city on the Central Coast, presenting the lowest median home prices, as well as the lowest price per square foot. In San Luis Obispo County, Oceano has the lowest median home price, while Paso Robles has the lowest price per square foot.

 

Least Affordable Cities:

(Median Sales Price)

  • Santa Ynez: $1,095,000
  • Cayucos: $860,000
  • Avila Beach: $814,950

2014 Median Home Price by City- Most Expensive graph

 

(Price / Square Foot)

  • Cayucos: $513.93
  • Pismo Beach: $456.09
  • Avila Beach: $451.54
  • Santa Ynez: $450.61

2014 Median Home Price by sq foot- Most Expensive

Santa Ynez occupies the most expensive position in terms of median home price, and is approximately $235,000 more expensive on average than Cayucos, the 2nd most expensive city. However, Cayucos does have the most expensive price per square foot, $57.84 more per square foot than the 2nd most expensive, Pismo Beach.

18
Feb

Mortgage Rate Update (February 18, 2015)

For the week of February 16 through February 20

Conv. Rates 2.18

Government Loan Programs

Spec. Rates 2.18

Rates for almost all loan programs have increased this week, with the exception of the 30-Year High Balance and 30-Year FHA programs. The largest increase was seen for Manufactured FHA loans at 3.625% (5.179% APR), up 1/4-point from last week’s rate of 3.375% (4.966% APR). Overall, loan programs remain lower than this time last year. The 30-Year Conventional is 3.750% (3.812% APR) compared to 4.375% (4.421% APR) in February 2013, and the FHA 203k is 3.625% (5.207% APR) compared to 4.250% (6.242% APR) one year ago. So although rates have risen slightly over the last couple of weeks, they remain substantially lower than last year.

This movement is illustrated in the graph below (as updated by the weekly Freddie Mac rate survey):

Freddie Mac Yearly 2.18 30-Year Fixed (History)

 

Take advantage of these rates while they remain low! Give us a call at 805.543.LOAN for a free, customized rate quote!

Calculation Notes

  • Mortgage rates assume purchase of a single-family, detached, owner-occupied, residential property.
  • Mortgage rates assume borrower credit score of 760 and a Debt-to-Income ratio of 35%. Rates for conventional loan programs assume a loan-to-value of 60%.
  • Loan amount is $417,000 for all programs (appraised value of $522,000), except for the high balance ($561,200 loan and $722,000 value), and Jumbo ($700,000 loan and $1,000,000 value)
  • Mortgage rates and APR subject to change
  • 30-year fixed, 15-year fixed, 30-year high balance, Manufactured, Jumbo
  • FHA, FHA 203k, Manufactured, USDA, VA
17
Feb

Mortgage Matters Radio: February 14 (’15)

 

Guest: None

Central Coast Lending SoundCloud (full episode downloads). February 14, 2015 (link to full episode).

17
Feb

FHA Eliminates Pre-Payment Interest

A rule change announced by the Federal Housing Administration (FHA) in August 2014 has eliminated the “prepayment penalty” for borrowers on FHA-backed mortgages.  The regulation states that for any new FHA loans closed on or after January 21, 2015 interest beyond the payoff date is not allowed to be charged to the borrower.  FHA loans closed prior to January 21, 2015 may continue to collect interest through remainder of the payoff month, as long as the servicer has stated that the prepayment (payoff) is received on the installment due date in its policy in request for a payoff figure.

With this change, FHA loan payoffs will move from a monthly interest accrual to a per diem interest accrual method.  Previously, borrowers with FHA-backed loans could be charged a full month of interest when they sold or refinanced their home, even if it occurred at the beginning of the month.  The prepayment penalty acted as a way to protect investors who bought mortgage-backed securities, allowing them the right to require post-payment interest on loans. It has been described as a “charge imposed for paying all or part of the transaction’s principal before the date on which the principal is due.”

This policy change allows FHA lenders to only charge interest up to and including the date that the loan is paid off. This is good news for borrowers. But not everyone is impressed with the change.

“HUD got it right by eliminating this predatory loophole that has lingered with FHA loans,” says Daniel Podesto, co-owner of Central Coast Lending.  He continues, “However, we would have liked to see the rule become effective for all FHA loans, not just newly originated FHA loans.”

FHA loans closed prior to January 21, 2015 may continue to contain a full month’s interest when paid off.  Here are two examples:

  • Original FHA loan closed December, 10, 2014, the borrower’s refinance is paying off that loan on April 21, 2015 – a full months interest CAN be collected
  • Original FHA loan closes April 21, 2015, the borrower’s refinance is paying off that loan on December 10, 2015 – only interest through the payoff date may be collected.

The actual legislation can be found at:  http://www.gpo.gov/fdsys/pkg/FR-2014-08-26/pdf/2014-20214.pdf