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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 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” »

Recent Articles

19
Nov

Mortgage Matters Radio: November 15 (NEW)

Guest: Wes Burk, Patterson Realty.

Central Coast Lending Soundcloud (full episode downloads). November 15, 2014 (link to episode).

 

19
Nov

Mortgage Rate Update (November 19)

Conventional Loan Programs 

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

Conventional Mortgage Rates copy

Specialty Loan Programs

FHA, FHA 203k, USDA, VA

FHA, VA, USDA Mortgage Rates copy

Manufactured Home Loan Programs

FHA Manufactured, Conventional Manufactured

Manufactured Mortgage Rates copy

Jumbo Loan Program

Jumbo ($700,000 loan amount)

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.
17
Nov

Central Coast Lending: Market and Mortgage Rate Update

Market Update

Last week was a light one for economic data, and included retail sales and little else. Standard weekly releases included the Mortgage Bankers’ Association home loan application index, unemployment claims, and Freddie Mac’s average 30-year fixed interest rate tracker.

Retail sales picked up speed in October, jumping 0.3% over the previous month. The “core” measure, which excludes automobile and gasoline sales, increased 0.6%.

Mortgage purchase activity fell 1.0% last week, and refinance activity fell 11.0%, despite the fact that Freddie Mac registered the national average of the 30-year fixed near its 2014 low – at 4.01%. Last year at this time, the 30-year average was 4.35%.

Lastly, unemployment claims rose to 290,000, which is the highest reading in seven weeks.

Overall, the data is nothing much to write home about. This week, we will see data on industrial production, existing home sales, consumer spending, and housing starts.

To start the week, stocks have improved, with the S&P 500 on pace for its 42nd record close of the year.

 

Mortgage Rate Update

Mortgage rates start the week lower. Japan’s economy unexpected contracted by 1.6% last quarter. As we have seen, poor economic news around the globe benefits pricing for mortgage rates.

Since August 1, rates have spiked, dipped, spiked, and dipped again. Our graph below takes a look at the pricing for the 4.125% 30-year fixed rate. “Points” refer to the cost that borrowers pay to obtain the 4.125%, expressed as a percent of the total loan amount (in this case, $417,000). Our test case assumes a premium-type loan, with a borrower credit score of 760, a Debt-to-Income ratio of 35%, and a purchase of a single-family detached home.

4.125 30-Year Fixed copy

 


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!

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12
Nov

Mortgage Rate Update (November 12)

Conventional Loan Programs 

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

Conventional Mortgage Rates (November 2014)

Specialty Loan Programs

FHA, FHA 203k, USDA, VA

USDA, FHA, VA Mortgage Rates (November 2014)

Manufactured Home Loan Programs

FHA Manufactured, Conventional Manufactured

Manufactured Mortgage Rates (November 2014)

Jumbo Loan Program

Jumbo ($700,000 loan amount)

Jumbo Mortgage Rates (November 2014)

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.
11
Nov
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” »

11
Nov
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” »

11
Nov

Central Coast Lending’s Market and Mortgage Rate Update

October Employment Report: “Reassuring” or “Meh”?

The October employment report has been described by pundits and analysts both as “meh” and as “reassuring.” Which is it? In this case, perhaps no news is good news.

Payrolls added another 214,000 jobs in October, and the unemployment rate dropped to 5.8%. The number came in slightly below the average projection, but still within the range of expectation. The months of August and September had total payroll additions revised upward by 31,000 positions, to 203,000 and 256,000 respectively.

First things first: the threshold of 200,000 new jobs per month is typically used as an indicator for a healthy economy, and monthly payroll growth has consistently eclipsed this number in 2014. Over the past year, there are 3.8 million more people who are employed in the United States economy.

What’s more, according to the real estate and finance blog Calculated Risk, 2014 is about to finish as the best year for employment growth since 1999.

And of course, sinking unemployment claims continue to set new 14-year lows seemingly every week.

Is this a recipe for “meh” employment news?

True enough, the employment growth can hardly be considered explosive. Underlying concerns remain, especially with the slumped pace of wage growth. If wages are stagnant, then sectors that rely on consumer purchasing power, like retail sales and real estate, could slow.

More questionable news: the civilian labor force participation rate of 62.8% is still well below the 66% ratio prior to the recession. The employment-population rate ticked up to 59.2%.

The 5.8% measure of unemployment looks great, but another measure known as “U6” puts unemployment at 11.6%, once accounting for part-time workers who want full-time work, and discouraged workers who believe they can’t find a job.

So the report isn’t overwhelmingly positive, but “meh”? My reaction leans towards that of Randy Frederick, managing director of trading and derivatives at Charles Schwab. Frederick was quoted in a CNBC article on the employment report:

“The mid-terms are behind us, Fed tightening is behind us, and the economic data continues to look good; I’m not an uber-optimist, but I’m having a difficult time finding anything to worry about through year end,” said Randy Frederick, managing director of trading and derivatives at Charles Schwab.

I’m having a difficult time finding anything to worry about through the end of the year.

With worries about the “slowing global economy” a consistent refrain, it is nice to see that U.S. put together a strong year of employment growth.

“Meh”?

Maybe a bit, but given the rest of the world, “no news” looks a whole lot like “good news.”

 

Mortgage Rates

You may recall a few weeks ago that mortgage rates plummeted sharply and quickly to their lowest level in 18 months. The dip came as investors reacted to the “slowing global economy” (as mentioned above) and various geopolitical concerns. The major U.S. stock indexes – Dow Jones Industrial Average, S&P 500, and Nasdaq – dipped near to “correction” territory, defined as a 10% drop. This instability offers a beneficial environment for mortgage rates.

Since then, mortgage rates have popped back up. Just today, the Dow and S&P 500 reached all-time record highs during the trading day. Earning reports, employment / unemployment… the news is pretty good for the economy, which gives investors the incentive to leave the “safety” of bond markets and enter the higher-yielding, if riskier, stock market.

Though the price improvements have largely been erased, rates aren’t too far from the historical low levels reached in 2012 / 2013. Relative to rising mortgage rates, a bigger concern for the real estate market seems to be rising home prices and constrained supply. CNBC real estate reporter Diana Olick wrote in a recent column:

What is holding buyers back today is sticker shock. Home prices bounced off the bottom far more quickly than most had expected, thanks to heavy, all-cash investor interest. Prices rose considerably faster than income growth, and now that investors have slowed their purchases, mortgage-dependent buyers are not picking up the slack, even as rents continue to rise. Higher rents, in turn, are keeping some borrowers from saving for a down payment.

Central Coast buyers can commiserate: prices have risen steadily from their 2011 valley, with the SLO County average up about 30% in 36 months.

The lesson from this changing environment: always be prepared, so that you can act when the time is right. Give us a call at 805.543.LOAN for a completely free, honest, and confidential discussion about your finances. Once pre qualified, we can act quickly should rates fall or should the right home become available.

10
Nov

Mortgage Matters Radio: November 8 (NEW)

Guests: Kathy Curtis, Bishop Hawk Realty; Greg Nester, Greg Nester Construction & Development.

Central Coast Lending Soundcloud (full episode downloads). November 8, 2014 (link to episode).

5
Nov

Mortgage Rate Update (November 5)

 

Conventional Loan Programs 

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

October 2014 Conventional Mortgage Rates

Specialty Loan Programs

FHA, FHA 203k, USDA, VA

October 2014 FHA, USDA, VA Mortgage Rates

Manufactured Home Loan Programs

FHA Manufactured, Conventional Manufactured

October 2014 Manufactured Mortgage Rates

Jumbo Loan Program

Jumbo ($700,000 loan amount)

October 2014 Jumbo Mortgage Rate

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.
5
Nov

Mortgage Matters Radio: November 1 (NEW)

Guests: Lenny Jones, Realtor.

Central Coast Lending Soundcloud (full episode downloads). November 1, 2014 (link to episode).