Interest Rates in the “Fours!”

December 23, 2008 by Mark Roknich

Four-Something has arrived! When we last wrote this column, we predicted the arrival of a mortgage interest rate BELOW five percent. It happened, and it happened quickly!

Just this past Friday, for the first time, I received an announcement via email for a mortgage, with the interest rate quoted at 4.375% with a typical 1-point origination fee (4.5% APR). That rate applies to a conforming loan under $417,000; higher rates apply to larger mortgage amounts.

Four-something for a 30-year fixed? That is a benchmark of historic proportion! It could be the beginning of the much needed bottom in Orange County housing prices, if the opportunity for rates like those lasts awhile, and if lenders regain their footing in the market.

It’s condo time! Investors, first-time buyers, and parents who want their kids to be nearby after graduating high school or college (but not THAT nearby…), now might be a great time to make an investment in the future.

Owner-occupied (think: the kids) purchases can be made with very little downpayment. VA and FHA-insured loans are available with only a small investment, but are accompanied by higher monthly payments, of course.

But with a larger downpayment and a conventional mortgage, break-even cash flow is closer to reality than any time in a decade.

Here’s another thought, for those of you who are inclined towards single family homes rather than condos: 20 percent downpayment will buy a single family residence in Orange County, and still get under the magic conforming figure of $417,000 to get those great 4.x% loans. And rates are still extremely low for loans above $417,000….lower than any time in the past few years.

Have we piqued your “interest?” Rates in the “fours” won’t last forever. What an opportunity! Call us at (949) 240-5892, or send us an email, and let’s start strategizing and building a real estate portfolio!

Share and Enjoy:

Filed under: Market Update
Tagged:

New Listings Coming Soon!

December 7, 2008 by Christe Roknich

We have just listed two great homes, each coming to market in the next few days. The first is in Dana Point, priced at $619,900, offering 3 bedrooms, 2 baths, on a single level, cul de sac location, with no homeowners assocation, within walking distance to Salt Creek Beach.

The second home is in Aliso Viejo, also detached, priced at $1,049,000, 5 bedrooms, 4 baths, over 3000 square feet with unbelievable view of canyon and sunsets! This beautiful home is a short sale, and could be a great buy for one lucky buyer.

Interest rates dropped like a stone this week, and are expected to fall further this month. Projections, from those who make them, have included mortgage interest rates falling to 4.5%; some of these admittedly optimistic pundits have equated this dramatic reduction in rates to a rebound in the real estate market in 2009. Although no one knows for sure what will happen next year, to some degree, increased optimism can only help.

Share and Enjoy:

Filed under: Market Update
Tagged:

We Have a New President…

November 13, 2008 by Christe Roknich

At last, the presidential election cycle has ended. The new team is meeting with the old team, and preparing for the January transition.

Opinion is mixed as to whether or not the new administration and its policies will have a significant impact on the economy. If and when it does, everyone agrees that even with fast action, the changes to our nation’s financial condition will be gradual. The U.S. economy is more like a cruise ship than a speedboat – turning things around is a slow process, not a one-day event.

But with all this uncertainty, did you know that in Orange County there are 217 homes in escrow right now priced above $1,000,000, including 55 of these priced above $2,000,000? In a high-priced market, such as ours in Orange County, these numbers admittedly don’t impress. But…you may not realize, per the Southern California MLS, compiled by us today, that there are 3,639 properties in escrow priced under $1 million! Now that is an impressive number, and one worth highlighting. 3,639 homes in escrow….although fewer than in the market a few years ago, that’s still a surprising figure.

Picking a bottom in the market is often considered to be a “fool’s game”. If you think that we’re close, now might be the time to begin accumulating real estate again. Call us at (949) 240-5892, or send us email us to discuss your plans!

Share and Enjoy: