Market direction unclear as statistics suggest opposing trends

Posted Leave a commentPosted in Financing, Market Direction

The end of February, interest rates were at a four-year high, with 30-year fixed rate mortgages averaging 4.40% and 5-year adjustable rate mortgages averaging 3.65%. At the same time, interest on treasury notes is down. This means investors are abandoning bonds and now buying mortgages. Despite changing their methods, investors don’t have any concerns about […]

Finding affordable housing gets easier

Posted Leave a commentPosted in Financing, Housing shortage

New laws passed in September of 2017 are aimed at allowing for and funding the construction of lower-income, higher density housing in California.  Following are synopses of the more impactful changes.  Elsewhere on this blog is a more in depth article on Accessory Dwelling Units, or ADUs, also known as grannie flats. ( SB 2, […]

Mortgage Quick Facts – Federal Reserve Bank

Posted Leave a commentPosted in Financing

Let’s start by clearing up a common mis-perception. The Federal Reserve Bank (Fed) doesn’t set mortgage rates. Mortgage rates are set on Wall Street. So. how does the Fed impact mortgage rates? The Federal Open Market Committee (FOMC) is a rotating, 12 person sub-committee within the Fed. The FOMC meets eight times annually, plus as […]

Mortgage Quick Facts – 1

Posted Leave a commentPosted in Financing

Did you ever wonder where the money comes from to make mortgage loans? Or, how the interest rates are determined? As complex as lending can become, most of the time it’s pretty straight-forward. When the systems are operating as designed, it works as follows. And the money goes round & round The Federal National Mortgage […]