Real Estate Information Archive

Blog

Displaying blog entries 1-8 of 8

Mortgage Rates Hit Low of 4.54 Percent

by The Barringer Team

Mortgage rates dropped to the lowest level on record for the fifth time in six weeks, making homebuying and refinancing the most attractive in decades for those who can get loans.

The average rate for 30-year fixed loans this week was 4.54 percent, down from 4.56 last week, mortgage company Freddie Mac said Thursday. That's the lowest since Freddie Mac began tracking rates in 1971.

The last time rates were lower was during the 1950s, when most mortgages lasted just 20 or 25 years.

The rate on the 15-year fixed loan dropped to 4 percent, down from 4.03 percent last week and the lowest on record.

Rates have fallen since the spring. Yields on U.S. Treasury bonds have dropped as jittery investors seek safer investments. Mortgage rates tend to track the yields on Treasurys.

Low rates helped spark a little activity in the weak housing market. Applications to purchase homes rose 2 percent last week from the previous week, the Mortgage Bankers Association said Wednesday. Still, the housing market has been struggling and overall applications for loans were down last week as fewer people applied to refinance.

High unemployment, slow job growth and tight credit have made it difficult for many to purchase homes. The housing industry received a boost this spring when the government offered homebuying tax credits, but since those expired in April housing activity has fizzled.

Sales of previously occupied homes fell 5.1 percent in June. New home sales jumped last month but it was the second weakest month on record and it came after sales tumbled in May.

Refinance activity has increased over the last month as homeowners seek more affordable monthly payments. But many don't qualify for a loan or don't have have the cash to pay for closing costs. And rates have been low for so long that many have already refinanced.

To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

Rates on five-year adjustable-rate mortgages averaged 3.76 percent, down from 3.79 percent a week earlier. Rates on one-year-adjustable-rate mortgages fell to an average of 3.64 percent from 3.70 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for loans in Freddie Mac's survey averaged 0.7 a point for all loans.

 Elphinstone, J.w. "Mortgage Rates Hit Low of 4.54 Percent - Yahoo! Finance." Yahoo! Finance - Business Finance, Stock Market, Quotes, News. 29 July 2010. Web. 29 July 2010. http://finance.yahoo.com/news/Mortgage-rates-hit-low-of-454-apf-434994172.html?x=0&sec=topStories&pos=main&asset=&ccode.

 

Bean Festival Royalty Crowned

by The Barringer Team

Winners of the Tracy Dry Bean Festival Queen and Princess Pageant were announced at the Grand Theatre Center for the Arts over the weekend.

The following were crowned at the Saturday, July 24, pageant:

Bean Queen Division

Angela Alvarez, Tracy Bean Festival Queen

Kayla McGuinness, Miss Tracy Centennial

Julia Price, first runner-up

Autumn Aguilera, second runner-up

Amy Wise, third runner-up

Rebecca Fuller, fourth runner-up

 

Princess Division

Marissa Peinado, Tracy Dry Bean Festival Princess

Kaitlin Cuevas, Miss Junior Tracy Centennial

Rebekah Boguhn, first runner-up

Corinne Parco, second runner-up

Colby Haskell, thrid runner-up

Ayanna Cornelius, fourth runner-up

 

Little Sprout Division

Isabella Faria, Tracy Dry Bean Festival Little Sprout

Mariah Bogetti, Little Miss Tracy Centennial

Aubrey Preciado, first runner-up

Jaime Haskell, second runner-up

 

An extension profile will be published in a special bean festival-themed Our Town section Sept. 10.

Dirt- Cheap Mortgage Rates: Here For How Long?

by The Barringer Team

Although economists have grown increasingly concerned that the real estate market may slip into a "souble dip" recession, today's consumers are being handed a tempting incentive to buy property or refinance their home loans; ultra-low mortgage rates.  Rates on 30-year fixed mortgages fell to 4.57 percent for the week ending July 15.  That's down a half percentage point from three months earlier and the lowest level in the 39 years that Freddie Mac has been monitoring rates.  "It's really what you could call a once-in-a-generation oppurtunity for [low] financing costs," says Mike Larson of Weiss Research. Here's a look at the forces that have created the current mortgage-rate environment, the direction rates are headed, and what you need to know to take advantage of them.

Weak U.S. Economy: Mortgage rates have dipped to record lows in large part because "frankly, the economy is lousy," says Keith Gumbinger of HSH Associates, a publisher of consumer loan information.  The national unemployment rate remains uncomfortably high at 9.5 percent, and Nomura Securities expects forthcoming data to shoe that U.S. economic growth slowed in the second and third quarters.  A weak economy puts downward pressure on mortgage rates in several ways.  "First and foremost, demand for credit is low," Gumbinger says.  As a result, lenders in many cases must reduce rates to attract borrwers.  "Basic supply and demand," Gumbinger says.

At the same time, a sluggish economy works to ease investor concerns over future price appreciation.  "The other part that controls long-term interest rates is inflation expectations," says Brad Hunter, the cheif economist at Metrostudy, a firm that researches the housing industry.  "And I believe that the bond market sees very little inflation in the near term." Zach Pandl, an economist at Nomura Securities, agrees.  "The risk today is of excessively low inflation," Pandl says.  "There is no inflation on the horizon."  As such, Pandl expects the Federal Reserve to hold its benchmark federal funds rate in the current zero to 0.25 percent range for the foreseeable future.

European debt crisis: Developments in the global economy have created additional downward pressure on home loan rates.  When the shaky balance sheets of several European countries spooked financial markets in late spring, investors scurried out of risky assets like stocks and into U.S. Treasury bonds.  As demand increased, yields on 10-year treasuries fell to 3.05 percent for th week ending July 16, down from 3.85 percent three months earlier.  And since fixed mortgage rates tend to track the yields on 10-year treasuries, home loan costs declined significantly as well.

The European debt crisis also juiced demand for another class of assets that has helped bring down mortgage rates.  With stocks looking increasingly risky, investors began searching for safe places to park their money.  "What they really want to do is buy something that is government-guaranteed," says Guy Cecala, the publisher of Inside Mortgage Finance.  "And there really are only two choices: Treasury securities, which have a very low yield, or going for a little higher yield with [Fannie Mae or Freddie mac mortgage backed-securities]."  While many investors purchased U.S. Treasuries, others- tempted by the possibility of slightly higher returns- took the second option.  The subsequent "huge" demand worked to reduce the yields on these mortgage- backed securities, which translated into lower rates on home loans, Cecala says.

Outlook: Although mortgage rates may increase from these record lows by the end of the year, they are likely to remain in an attractive range, Hunter says.  "But I think that probably we will get a modest increase in long-term interest rates by the end of next year," Hunter says.  "By then, the economy will have started creating jobs and [have] started to take up some of the slack capacity in industrial production."  Thirty-year fixed mortgage rates could approach 6 percent by the end of 2011, he says.

Lock or wait?: Could rates move lower from current, ultra-low levels?  Sure.  If the U.S. economy slows sharply or a fresh crisis rattles global confidence, consumers could see financing costs become even cheaper.  But given that rates are now sitting near 40-year lows, you're better off locking in a rate today rather than holding out for a better deal.  "The likelihood of getting a significantly lower interest rate is pretty slim," Gumbinger says.

But that doesn't mean everyone will be able to get their hands on today's lowest financing costs.  After getting hammered by bad loans made during the housing boom, banks have increased their lending standards for borrowers of all stripes.  To obtain today's best rates on a home purchase loan, borrowers will typically need a FICO score of 720 or higher, a down payment of around 10 percent- although it could be significantly higher in certain markets- and fully documented income assets, Gumbinger says.  For the best rates when refinancing your home, you'll generally need a FICO score of 730, at least 20 percent equity in your home, and at least two years of tax returns, Cecala says.

Mullins, Luke. "Dirt-Cheap Mortgage Rates: Here for How Long? - Yahoo! Finance." Yahoo! Finance - Business Finance, Stock Market, Quotes, News. 22 July 2010. Web. 26 July 2010. <http://finance.yahoo.com/news/DirtCheap-Mortgage-Rates-Here-usnews-998607178.html?x=0&mod=pf-loans>.

FHA Considers Policy Changes

by The Barringer Team

The Federal Housing Administration (FHA) is considering three policy changes to boost its capital reserves.  Under the changes, new borrwers seeking FHA-insured loans will need a minimum FICO score of 580 to qualify for FHA's 3.5% downpayment program.  New borrwers with credit scores between 500 and 580 will be required to provide a 10% downpayment, and borrwers with credit scores below 500 will no longer qualify.  The US Department of Housing and Urban Development (HUD) published a notice today seeking public comment on the measures, which are designed to reduce finiancial risk and preserve affordable mortgage finance.  HUD will accept public comment for the next 30 days on the proposed changes.  "These are the latest in a series of changes to allow the FHA to manage its risk better while continuing to support the nation's housing recovery," said FHA commissioner David Stevens in a press release.

Specifically, the FHA is proposing to update the combination of credit and downpayment requirements for new borrwers, reduce seller concessions from 6% to 3% and tighten underwriting standards for manually-underwritten loans.  The changes also seek to reduce the share of the home sales price that sellers are allowed to contribute at the closing table to offset the buyers' costs.  The current share of 6% "expose the FHA to excess risk by potentially driving up the cost of the home beyond its appraised value," the FHA said in a statement today.  The proposed change would reduce seller concessions to 3%, which the FHA said would bring it into conformity with industry standards.  The proposed FHA policy updates also require lenders, during the underwiritng process, to consider compensating factors that are "the best predictive indicators of loan performance"- credit history, loan-to-value ratio, debt-to-income ratio and cash reserves.

Tags: , , , , , , ,  

Up For Adoption

by The Barringer Team

Meet Jack.  Jack is a 5-month-old Chihuahua available for adoption at the Tracy Animal Shelter.

Tracy Animal Shelter, 370 Arbor Road, is open from noon to 5:30 pm Tuesdays through Saturdays.  The shelter also has cats and kittens ready to adopt, and the shelter staff seek donations of dog toys, dog treats and towels.  For information: 209-831-6364.

Meet Domino.  Domino is a medium-sized male Labrador retriever mix, about 1 1/2 years old.  He loves playing with other dogs and is gentle with cats and little children. He has good manners and loves to play fetch and tug-of-war.  Domino is yet another victim of home foreclosure.  Adopted from East of Eden when he was 8 weeks old, he was well cared for and loved and grew up with another dog.

East of Eden is a nonprofit animal rescue group.  Volunteers are at Petco, 2888 Grant Line Rd, from noon to 3 pm Saturdays.  For information: 209-815-5186.

 

Tags: , , , , , , , , , ,  

Summer Fun!

by The Barringer Team

Happy Summer Everyone!

The California State Fair starts Thursday, July 14 and runs through Sunday, Aug. 1.

The Fair's web site shows all the activities planned each day.  You can buy your tickets on-line.

Take a trip to Sacramento and see the great State Fair!

Tags: , , , , ,  

Tracy Area Market Report 7/12 vs 6/1

by The Barringer Team

The following information is from the local MLS database, as of July 12, 2010 and is compared to (June 1, 2010).  The Tracy Market continues to be dominated with bank owned and short sale inventory.  The lack of inventory and abundance of buyers have created multiple offer situations on almost every active listing there by creating over bidding.  Appraisal is still at issue as if the home gets bided up it still must appraise for value.  Buyers consist of first time buyers and investors. If you are interested in a little more market information feel free to give us a call, we are always happy to talk about the market. 

 

Tracy, CA

 

ACTIVE Status

Total # of residential properties for sale in the city of Tracy: 373 (369)

# of REO (foreclosures): 44 (48)

# of Short Sales: 268 (266)

Average # of days on market: 59 (67)

The median price of all homes for sale in Tracy: $249,900 ($239,900)

The average price of all homes for sale in Tracy: $267,646 ($263,887)

Lowest priced home: 1bd/612 sq. ft. /$80,900

Highest priced home: 7bd/5,159 sq. ft. /$1,299,000

  

Square Feet

# of homes for sale in Tracy

Median List Price

Average List Price

1,000 to 1,400

18

$162,000

$212,319

1,500 to 2,000

22

$204,450

$214,272

2,000 to 4,000

52

$299,900

$319,812

 

PENDING Status

Number of properties currently under agreement: 281 (302)

# of REO: 62 (67)

# of Short Sales: 156 (170)

Average pending price: $223,755 ($222,225)

 Average pending home is 4 bedrooms, 1,990 square feet at a price of $223,755 that stays 37 days on the market.

 

Square Feet

# of homes for pending in Tracy

Median Pending Price

Average Pending Price

1,000 to 1,400

50

$147,944

$145,801

1,500 to 2,000

79

$210,000

$206,937

2,000 to 4,000

116

$269,950

$279,708

 

SOLD Status

Residential property sold over previous 30 days: 123 homes or $27,942,025 in sales (117 homes or $27,084,863 in sales)

REO’s sold in the last month: 42 (40)

Short sales sold in the last month: 44 (34)

Average sale price: $227,171 ($231,495)

Median sale price: $225,000 ($235,000)

High: 430K (6bd/4,098 sq. ft. home)

Low: 66K (2bd/936 sq. ft. home)

 

Square Feet

# of homes sold in the last month in Tracy

Median Sale Price

Average Sale Price

1,000 to 1,400

32

$160,500

$155,531

1,500 to 2,000

25

$215,000

$206,598

2,000 to 4,000

54

$280,000

$287,941

 

Mountain House, CA

 

ACTIVE Status

Total # of residential properties for sale in the city of Mountain House: 101 (102)

# of REO (foreclosures): 9 (7)

# of Short Sales: 75 (81)

Average # of days on market: 27 (30)

The median price of all homes for sale in Mountain House: $312,450 ($308,888)

The average price of all homes for sale in Mountain House: $320,759 ($318,726)

Lowest priced home: 2bd/1,155 sq. ft. /$149,900

Highest priced home: 5bd/3,858 sq. ft. /$449,900

 

Square Feet

# of homes for sale in Mountain House

Median List Price

Average List Price

1,000 to 1,400

6

$229,400

$218,841

1,500 to 2,000

2

$252,750

$252,750

2,000 to 4,000

16

$395,500

$380,106

 

PENDING Status

Number of properties currently under agreement: 93 (101)

# of REO: 14 (20)

# of Short Sales: 54 (52)

Average pending price: $302,262 ($312,611)

 Average pending home is 4 bedrooms, 2,500 square feet at a price of $302,262 that stays 36 days on the market.

 

Square Feet

# of homes pending in Mountain House

Median Pending Price

Average Pending Price

1,000 to 1,400

6

$174,900

$176,300

1,500 to 2,000

13

$210,000

$229,822

2,000 to 4,000

66

$344,500

$342,977

  

SOLD Status

Residential property sold over previous 30 days: 28 homes or $8,974,950 in sales (28 homes or $8,678,050 in sales)

REO’s sold in the last month: 7 (8)

Short sales sold in the last month: 13 (11)

Average sale price: $320,534 ($309,930)

Median sale price: $325,000 ($315,500)

High: 465K (6bd/3,992 sq. ft. home)

Low: $199,300 (3bd/1,367 sq. ft. home)

 

Square Feet

# of homes sold in the last month in Mountain House

Median Sale Price

Average Sale Price

1,000 to 1,400

2

$230,500

$230,500

1,500 to 2,000

3

$245,000

$244,767

2,000 to 4,000

23

$328,400

$338,246

 

Lathrop, CA

 

ACTIVE Status

Total # of residential properties for sale in the city of Lathrop: 129 (134)

# of REO (foreclosures): 26 (21)

# of Short Sales: 75 (92)

Average # of days on market: 39 (42)

The median price of all homes for sale in Lathrop: $195,900 ($200,620)

The average price of all homes for sale in Lathrop: $252,319 ($259,562)

Lowest priced home: 2bd/1,040 sq. ft. /$107,100

Highest priced home: 6bd/4,011 sq. ft. /$2,500,000

 

Square Feet

# of homes for sale in Lathrop

Median List Price

Average List Price

1,000 to 1,400

7

$125,000

$130,964

1,500 to 2,000

11

$179,900

$182,365

2,000 to 4,000

27

$219,900

$316,583

 

PENDING Status

Number of properties currently under agreement: 88 (76)

# of REO: 37 (28)

# of Short Sales: 33 (34)

Average pending price: $188,390 ($186,978) 

Average pending home is 4 bedrooms, 2,209 square feet at a price of $188,390 that stays 51 days on the market.

 

Square Feet

# of homes pending in Lathrop

Median Pending Price

Average Pending Price

1,000 to 1,400

18

$132,450

$125,072

1,500 to 2,000

20

$155,950

$160,355

2,000 to 4,000

50

$215,400

$222,399

 

SOLD Status

Residential property sold over previous 30 days: 28 homes or $5,462,490 in sales (41 homes or $7,243,950 in sales)

REO’s sold in the last month: 9 (28)

Short sales sold in the last month: 10 (6)

Average sale price: $195,089 ($176,682)

Median sale price: $188,325 ($187,500)

High: 290K (5bd/3,870 sq. ft. home)

Low: 112K (3bd/1,092 sq. ft. home)

 

Square Feet

# of homes sold in the last month in Lathrop

Median Sale Price

Average Sale Price

1,000 to 1,400

4

$143,500

$137,250

1,500 to 2,000

9

$175,000

$178,556

2,000 to 4,000

13

$229,900

$233,268

 

Weston Ranch, CA

 

ACTIVE Status

Total # of residential properties for sale in Weston Ranch: 137 (114)

# of REO (foreclosures): 28 (24)

# of Short Sales: 85 (77)

Average # of days on market: 46 (43)

The median price of all homes for sale in Weston Ranch: $163,650 ($170,500)

The average price of all homes for sale in Weston Ranch: $176,952 ($175,642)

Lowest priced home: 2bd/1,348 sq. ft./$99,900

Highest priced home: 6bd/3,054 sq. ft./$699,950

 

Square Feet

# of homes for sale in Weston Ranch

Median List Price

Average List Price

1,000 to 1,400

3

$143,000

$139,267

1,500 to 2,000

19

$149,900

$152,913

2,000 to 4,000

26

$185,400

$204,567

 

PENDING Status

Number of properties currently under agreement: 77 (90)

# of REO: 35 (41)

# of Short Sales: 27 (33)

Average pending price: $147,054 ($148,247)

 Average pending home is 4 bedrooms, 1,911 square feet at a price of $147,054 that stays 31 days on the market.

 

Square Feet

# of homes pending in Weston Ranch

Median Pending Price

Average Pending Price

1,000 to 1,400

5

$119,000

$116,160

1,500 to 2,000

38

$139,000

$142,363

2,000 to 4,000

26

$171,400

$170,684

 

SOLD Status

Residential property sold over previous 30 days: 43 homes or $6,714,185 in sales (36 homes or $5,617,300 in sales)

Short sales sold in the last month: 9 (11)

REO’s sold in the last month: 28 (15)

Average sale price: $156,144 ($156,036)

Median sale price: $155,250 ($154,000)

High: 224.5K (5bd/2,915 sq. ft. home)

(225K (6bd/3,376 sq. ft. home))

Low: $1,205 (3bd/1,012 sq. ft. home)

(104K (3bd/1,090 sq. ft. home))

 

Square Feet

# of homes sold in the last month in Weston Ranch

Median Sale Price

Average Sale Price

1,000 to 1,400

2

$115,000

$115,000

1,500 to 2,000

18

$148,000

$135,225

2,000 to 4,000

22

$177,500

$178,415

 

McDonald's Welcomed in Southern Tracy

by The Barringer Team

The newest McDonald's opened earlier this week in southern Tracy, and so far, business at the eatery has been booming.

Manager Carl Austin said customers have flocked to the restaurant at the southeast corner of Tracy Blvd and Valpico Rd.  Since the store officially opened Tuesday, July 6, visitors have consistently told him the same thing: that the McDonald's is a welcome addition to the area.

"It's been outstanding," Austin said of the turnout so far.  "I think the neighborhood's wanted this."

The McDonald's is decorated in a distinctly modern theme, with clean lines and soft colors.  There's also a planted patio area that supplements the eatery's 72-person capacity.

Austin said the other McDonald's restaurants in Tracy- which he also manages- have recently undergone renovations.  A resident of Tracy since 1972 and an employee in the company for 37 years, Austin said he and the other 68 full-and part-time workers at the new McDonald's aim to integrate into the neighborhood and city.

"We basically just want to be part of the community," he said.

Staff, TP. "Tracy Press - Biz Buzz McDonald S Welcomed in Southern Tracy." Tracy Press - News, Events, Classifieds and Businesses in Tracy, Calif. 08 July 2010. Web. 12 July 2010. http://www.tracypress.com/view/full_story/8614529/article-Biz-Buzz--McDonald-s-welcomed-in-southern-Tracy?instance=home_news_bullets.
 

Displaying blog entries 1-8 of 8

Syndication

Categories

Archives

Contact Information

The Barringer Team
Century 21 M&M and Associates
912 W 11th Street
Tracy CA 95376
209-833-7777
800-984-7282
Fax: 209-229-7426
Search Listings Now

            

   
    

DRE License #00959667