The Real Estate Report
Mortgage Rate Outlook
3.0% 4.0% 5.0% 6.0% 7.0% 8.0%01-0404-0407-0410-0401-0504-0507-0510-0501-0604-0607-0610-0601-0704-0707-0710-0701-0804-0807-0810-0801-0904-0907-0910-0901-1004-1007-1010-10
30-Year Fixed Mortgage Rates
Cities Median Average Sales Pend Inven DOI SP/LP Med Ave Sales Pend2 Inven
County ,,. % . % - . % - . - . . %Aptos ,,. % - . - . % . - . . %Capitola ,,. % . % . % - . - . . %Rio del Mar ,,. % - . - . % - . - . . %Seacliff ,,. % . % . % - . - . - .San Lorenzo Vly ,,. % - . - . % - . - . . %Soquel ,,. % . % . % . % . % . %Scotts Valley ,,. % - . - . % - . . % . %Santa Cruz ,,. % - . % - . % - . - . . %East County ,,. % . % - . % - . - . . %West County ,,. % - . - . % . - . . %Watsonville ,,. % - . - . % - . . % . %
Santa Cruz County - November 2010
Single-Family Homes % Change from Year Before
Single-family Home SalesMedian& AveragePrices
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.
Dec. 3 2010
--Mortgage rates rose again this week,responding to signals of an improving economy. Onlya lackluster employment report for November keptthem from increasing further.The 10-year Treasury, a benchmark for fixed-ratemortgages, crested above 3% this week, and hasrisen nearly a half-percentage point from November'sdaily low. The yield is the highest since July, andmortgage rates are following right along. Somedreams of low-rate refinancing have come to an end,at least for the moment.HSH.com's overall mortgage tracker -- our weeklyFixed-Rate Mortgage Indicator (FRMI) -- found theaverage rate for 30-year fixed-rate mortgages movedeight basis points higher (.08%), ending HSH.com'snational survey at 4.86%, its highest value sinceearly August. For low down payment homebuyers or refinancers with only a slight equity position, FHA-backed loans are available at an average rate of 4.52%, while the overall average rate for 5/1 HybridARMs rose three basis points to 3.66% for the week.HSH.com's public mortgage interest rate data seriesinclude rates for conforming, jumbo, and most re-cently the GSE's "high-limit" conforming products andso covers much of the mortgage-borrowing public.With the increase in rates, it's little surprise that appli-cations for new mortgages have dropped sharply,particularly for refinancing. Given what seems to bethe particularly strong interest rate sensitivity of thisrefinancing boomlet, refinancing activity will probablygrind to a halt absent a new decline in rates. Despitethe rise, rates remain at veryattractive levels, butthere simply aren't enough high-rate mortgageswhich can be successfully refinanced at these ratesand in the context of today's tight lending standards.Still, perspective is important. Home purchases relyfar less on rock bottom interest rates and far more oneconomic improvement, especially income and jobgrowth. Those who wish for lower rates are, in a way,wishing economic misfortune on others. At this stageof the recovery, we should all be cheering evenmildly better economic news, even if it does engen-der somewhat higher rates. Yes, fewer householdbalance sheets will be improved by refinancing, it'strue, but if that comes at the expense of more folksgetting jobs, spending money and buying homessooner rather than later, so be it.