The Real Estate Report
Mortgage Rate Outlook
30-Year Fixed Mortgage Rates
County,,.%-.%.%-.-..% Aptos,,.%.%.%.%.%.%Capitola,,,.%.%.%.-..%Rio del Mar,,.%-.-.%-.-.-.%Seacliff,,.%.%.%.%-.-.San Lorenzo Vly,,.%-.%.%-.-..%Soquel,,.%.%.%.%.%.%Scotts Valley,,.%.%-.%-.-..%Santa Cruz,,.%-..%-.-..%East County,,.%.%.%.%-..%West County,,.%.%.%-..%.%Watsonville,,.%-.-.%.%-..%
Santa Cruz County - September 2010
Single-Family Homes % Change from Year Before
S i n g l e - f a m i l y H o m e S a l e s M e d i a n & A v e r a g e P r i c e s
Santa Cruz County Homes
- Prices & Sales
(3-month moving average—prices in $000's)
Susan Strouse, B.S., M.A.
Strouse Realty GroupAmerican Dream Realty
5522 Scotts Valley Dr.Scotts Valley, CA 95066(831) 338-6481Susan@StrouseRealtyGroup.comhttp://www.StrouseRealtyGroup.com
The chart above shows the Nationalmonthly average for 30-year fixedrate mortgages as compiled byHSH.com. The average includes mort-gages of all sizes, including conforming,"expanded conforming," and jumbo.
Oct. 1, 2010
--After near stasis for the past six weeks,mortgage rates again managed a bit of a declineamid mixed economic messages. Increasing specu-lation that the Fed will initiate substantial purchasesof Treasury bonds (so-called "quantitative easing") tokick-start the economy from its bare expansionhelped to drive interest rates a bit lower.HSH's overall mortgage monitor -- our weekly Fixed-Rate Mortgage Indicator (FRMI) -- saw the averagerate for 30-year fixed-rate mortgages shed five basispoints to begin October at 4.70%. Important to first-time homebuyers and low-equity refinancers alike,30-year FHA-backed mortgages sported an averageof 4.40% for the week. The overall average for Hybrid5/1 ARMs declined by six basis points (.06%), finish-ing our national survey at 3.61%. HSH.com's FRMIsinclude rates for conforming, jumbo, and most re-cently the GSE's "high-limit" conforming products andso covers much of the mortgage-borrowing public.We mention above that the economic news seemsmore mixed to us. It wouldn't be hard to improveupon second quarter GDP, which came in at a finalreckoning of 1.7%, but there does seem to be a mildoverall uptick (or at least greater stability) in the newsfor September, the final month of the third quarter.There can be no doubt that 3Q10 will be a weak oneoverall, but to us, much of the weakness seemed tobe concentrated in July and August.The big employment report doesn't come until nextweek, and it's the big gorilla in a fairly empty room.Stock and bond markets enjoyed unexpectedly favor-able conditions in September, which is not noted tobe a historically great period for equities. October'sbeen known to be a difficult period, too, but if Sep-tember's any indicator, perhaps the markets are sim-ply becoming accustomed to being in active crisis,and can find reasons to celebrate when we're not.Here's hoping that the rally's got more substancebehind it than that, but there's nothing wrong with alittle optimism showing somewhere.P.S. If you missed it over the last few weeks, youshould have a look at our plan to help responsiblehomeowners who are underwater. Unlike the "FHAShort Refi" idea, the concept doesn't penalize home-owners or investors... and there might even be nocost to taxpayers, either. Curious? Read HSH.com'sValue Gap Refinance idea:http://www.hsh.com/ValueGapRefi.html