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San Luis Obispo Cal Poly

The CCL Workforce Housing Mortgage: 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 CCL Workforce Housing Mortgage program.

Continue reading “The CCL Workforce Housing Mortgage: Discounts for Middle-Income Buyers” »

Morro Bay (Harbor 1)

First-Time Buyers Guide to the California Central Coast

As home prices continue to rise in San Luis Obispo County (30% over the past 36 months), the remaining “affordable” properties are subject to intense competition among buyers. First-time buyers, especially, have found the market difficult to navigate.

Continue reading “First-Time Buyers Guide to the California Central Coast” »

Bishops Peak

SLO County Real Estate Market Overview (Q2, 2014)

San Luis Obispo County is a beautiful place to live and work. The County’s economy is growing. The unemployment rate is sixth lowest in the state (of 58 counties) and the burgeoning local tech and engineering industries are booming.

Continue reading “SLO County Real Estate Market Overview (Q2, 2014)” »

Recent Articles

16
Oct

Mortgage Matters Radio: October 11 (NEW)

Guests: None.

Central Coast Lending Soundcloud (full episode downloads). October 11, 2014 (link to episode).

15
Oct

Mortgage Rate Update (October 15)

Mortgage rates continue to plummet. Over the past three weeks, check out these massive price improvements:

  • Jumbo: -7/8 of a point
  • 30-year Fixed (Conforming and High Balance): -1 and 1/2 points
  • 15-year Fixed: -1 and 1/8 points
  • Manufactured (Conventional and FHA): -2 and 1/2 points
  • USDA, FHA, FHA 203k, VA: -2 and 3/4 points

As an example, the cost for a 4.000% 30-year fixed rate was 1.750 percent (1 and 3/4 points) on September 24. Today, that cost is just 0.250 percent (1/4 of a point). Lower rate costs help borrowers obtain lower mortgage rates for a lower cost, thus making home financing more affordable. Now is a great time to lock in a rate for purchase or refinance.

Rates have dropped for the following reasons:

  1. Concern that the European economy may be slipping back into recession.
  2. Concern about the geopolitical situation (Russia/Ukraine, Syria/Isis/Middle East).
  3. Concern about China’s slowing growth.
  4. Concern about the ebola outbreak (abroad and closer to home).

As of today, markets can add:

5. Concern over a drop in United States retail sales (lower GDP?). The Dow dropped 350 points in response.

Last Wednesday, the Federal Reserve released the minutes from their September meeting. Members displayed enough concern about the economy to lead to speculation that the Fed could hold interest rates low into 2016.

Concern, volatility, low interest rates, low inflation… these are all ingredients for low mortgage rates. When the future feels uncertain, investors look for safety, and the U.S. bond market is a prime place to find it. Demand for bonds helps put downward pressure on rates.

Give us a call at 805.543.LOAN with any questions.

Read more »

13
Oct

Stock Market Struggles With Volatility; Will Mortgage Rates Drop?

On Tuesday, October 7, the Dow Jones Industrial Average dipped 274 points. The following day, it posted its largest jump of the year: 274 points. Next, the Dow retreated 334 points.

Talk about mixed messages.

All major U.S. stock indexes fell at least 2% last week, with the Nasdaq down 4%. The Dow is now even on the year. Despite Wednesday’s rally, it was the worst week for North American markets since 2012.

The volatility feels somewhat reminiscent to what we saw in 2011, when concern about the U.S. government shutdown, the “fiscal cliff”, and European debt issues dominated the headlines. This time around, however, the U.S. government is functioning (as best it can, at any rate) and U.S. employment data is strong.

The trouble, once gain, comes from abroad. Last week, an economic report showed that German industrial activity and exports had plummeted to 2009 levels. Meanwhile political unrest in Ukraine / Russia and the Middle East has people nervous.

So what can we expect moving forward?

Read more »

10
Oct

NEW Mortgage Matters: October 11

Tune in from 9 a.m. to 11 a.m. to catch Mortgage Matters Radio on KVEC 920. No guest this week, but Dan and Jason will bring their unique charm to the table, as they update listeners on housing, real estate, and the economy.

9
Oct

Mortgage Matters Radio: October 4 (NEW)

Guests: Roger Frederickson, Attorney.

Central Coast Lending Soundcloud (full episode downloads). October 4, 2014 (link to episode).

9
Oct

Mortgage Rate Update (October 9)

Mortgage pricing continues to drop. Over the past two weeks, pricing is down by about 1.0 points in some cases. Buyers can now pay less for better mortgage rates. Now would be a good time to lock in a rate for purchase or refinance!

  • Conventional Rates: 30-year fixed (-1/2 of a point), 15-year fixed (-1/8 of a point), and 30-year high balance (-1/2 of a point) all have cheaper pricing.
  • Government Rates (FHA, USDA, VA): Down between 3/8 of a point and 1/2 of a point.
  • Manufactured Rates: Down over 1/2 of a point.

Wondering if you should lock your rate? Every situation is different. Give us a call at 805.543.LOAN and we would be happy to talk it over.

 

Conventional Loan Programs 

30-year fixed, 15-year fixed, 30-year high balance

October Conventional Mortgage Rates copy

Specialty Loan Programs

FHA, FHA 203k, USDA, VA

October FHA, VA, USDA, FHA 203k Mortgage Rates copy

Manufactured Home Loan Programs

FHA Manufactured, Conventional Manufactured

October Manufactured Home Mortgage Rates copy

Jumbo Loan Program

Jumbo ($700,000 loan amount)

October Jumbo Mortgage Rates copy

Rates Directly to Your Inbox!

If you would like to receive a more detailed Mortgage Rate report, you can subscribe to our “CCL Rate Tracker.” The CCL Rate Tracker follows 10 loan programs and publishes three rate options closest to 1 point, par, and 1 rebate for each program every two weeks and delivers the results in an email. To sign up, please email [email protected] with the text “Rate Tracker.”

Apply Online Today!

When you register for a Loan Center account, you can submit a loan application online and the sensitive information that you provide will be transmitted securely. Your account also enables you to easily modify your loan application and view the status of your loan. Any questions? Call us at 805.543.LOAN or email us here.

About the Loan Programs:

 

NOTE:

  • Mortgage rates assume purchase of a singe-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 80%.
  • 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.
7
Oct

Fannie Mae HomePath Mortgage Set to Expire

Fannie Mae created their HomePath Mortgage program in 2009 to help sell the thousands of properties that they had come to possess through the foreclosure process.

The program’s expiration on October 7, 2014 is an informal sign that the housing market is well on its way back to normal.

When the housing bubble popped, hundreds of thousands of people lost their homes to foreclosure. As the largest housing insurer in the country, Fannie Mae came to possess many of those homes.

The HomePath mortgage offered a whole host of incentives to potential buyers. The program permitted as little as 3% (10% for investors) down with no private mortgage insurance requirement. To streamline the process, the HomePath loan did not require an appraisal (provided the buyer isn’t borrowing money for renovations).

The loan also took steps to help buyers compete against investors by prohibiting its agents from accepting offers from investors during the first 15 days of the home’s listing.

Buyers must have a fully executed purchase contract completed by October 7 to take advantage of the HomePath Mortgage, and the loan must fund and close by December 31, 2014.

 


Central Coast Lending is a California mortgage broker and direct lender based on the Central Coast of California in San Luis Obispo County. Call us today at 805.543.LOAN or email us here to set up a free pre qualification. We are The Mortgage Experts: ask us anything!

About   ||   Mortgage FAQ   ||   Market Update Blog   ||   Radio Show   ||   Contact

6
Oct

Mortgage Rates Rise on Positive Employment Data

National home price data is published on a lag, so when we hear that the S&P Case-Shiller index showed July home prices up 6.7% yearly and down 0.5% monthly, a natural response would be “ok, but what about September?” In general, these trends (however outdated) can give us a broader market picture.

For one, rising home prices, rising mortgage rates, and fewer foreclosures, have helped reduce the “affordability” of for-sale real estate. Bargain pricing (and historically low mortgage rates) helped fuel the housing market turnaround, and that fuel is starting to appear burnt out. Thus: the S&P Case-Shiller price index shows a month-over-month slowdown.

The good news: new home sales rose 18% month-over-month. Builders have reacted to the high demand environment and have built new properties to add to the supply pool. This is a healthy step for the real estate market, which appears ready to balance out and get back to a steady pace of growth.

And speaking of steady growth, let’s talk about employment. Jobless claims continue to push pre-recession lows. After reaching a 14-year low two weeks ago, claims for unemployment benefits have continued to decline. Continuing claims fell 20,000 to 2.441 million to reach a new recovery low.

Last (but not least), payrolls added 248,000 positions in September. Equally important, the August total was revised from 142,000 to 180,000. Combine the strong September numbers with the previous month’s upward revision, and it appears that August’s low initial reading was simply an outlier.

The nation’s unemployment rate fell 0.2% to 5.9%. Central Coast Lending co-owner Jason Grote noted that the number is even stronger than it looks:

“Half of the 0.2% dip came because people gave up and left the workforce, and the other half came because more jobs were created. Lately, the unemployment rate drops have occurred because 80% were giving up and 20%  were getting jobs. This 50/50 balance is much better.”

Digging deeper, we find another positive tidbit from the quality of the jobs being added. Business services (“white collar”) added 81,000 jobs in September, compared to an average of 34,000 over the past 12 months. The increase in these “head of the household”-type jobs gives us another reason for optimism.

 

Mortgage Rates

Last week started out favorable for interest rates.

Freddie Mac Rate Movement copy“I think honestly the fears over Ukraine, Syria, Hong Kong, and even ebola were a big part of it,” said Grote.

As the week progressed with positive data, however, mortgage rates increased.

“When the future is bright, bets move to the stock market,” said Grote. “There is a pull back from bond markets.”

When bond markets sink, interest rates typically rise.

 

Loan Program Update

The Fannie Mae HomePath Mortgage program will be discontinued effective October 7, 2014. Give us a call at 805.543.LOAN with any questions. Read more here.

 


Central Coast Lending is a California mortgage broker and direct lender based on the Central Coast of California in San Luis Obispo County. Call us today at 805.543.LOAN or email us here to set up a free pre qualification. We are The Mortgage Experts: ask us anything!

About   ||   Mortgage FAQ   ||   Market Update Blog   ||   Radio Show   ||   Contact

3
Oct
San Luis Obispo Cal Poly

The CCL Workforce Housing Mortgage: 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 CCL Workforce Housing Mortgage program.

Continue reading “The CCL Workforce Housing Mortgage: Discounts for Middle-Income Buyers” »

3
Oct
Halloween and Fall (1)

SLO County October 2014 Event Guide

October on the California Central Coast might be the best month of the year for blending “fun for the whole family” and “fun with the friends.” You have your family pumpkin picking, haunted houses, and costume creations, but then you also have your Oktoberfest beer and bratwursts, clam bakes, wine festivals, and jazz.

Our 2014 San Luis Obispo County October event guide has something for everybody. We broke the fun down into categories: pumpkin patches, haunted houses, “oktoberfest”, Halloween/Fall, and annual events.

Read more »