A Quick Note

Has the national housing market finally turned the corner? Understandably, real estate organizations have been reluctant to say so because our economic recovery in general has seemed so fragile. But after reviewing some recent numbers, the National Association of REALTORS declared that the market has indeed turned the corner.

In a recent statement NAR Chief Economist Lawrence Yun said, "First quarter closings were the highest first quarter sales in five years. The latest contract signing activity suggests the second quarter will be equally good."

He went on to say, "The housing market has clearly turned the corner. Rising sales are bringing down inventory and creating much more balanced conditions around the county, which means home prices will be rising in more areas as the year progresses."

We've been seeing significant improvement in the San Francisco real estate market for months. It's great to hear other markets across the nation are improving as well.

Market Update for San Francisco*
04/29/2012 - 05/05/2012

Mortgage Update

A recent report from the National Federation of Independent Business, suggests that companies have increased plans for hiring and investing in the future. Overall, though, the report shows that while our economy is improving, it still remains fragile. The state of our economy is part of the reason for the improvement in Bonds (and home loan rates, which are tied to Mortgage Bonds) of late.

Another big reason that Bonds and home loan rates have been improving is the fresh round of uncertainty out of Europe. France elected a new president, and this change of the guard represents the ninth EuroZone leader swap since the financial crisis began. Greece is also back in the news because its citizens are not taking to its austerity measures. This has sparked some safe haven trading into our Bonds, as investors see our Bonds as a safe place for their money.

The bottom line is that now continues to be a great time to purchase or refinance a home, as home loan rates remain near historic lows.

This information is provided by Ephraim Schwartz, Partner, Mortgage Consultant, CMPS. Ephraim can be reached at the O'Dette Mortgage Group, (415) 931-2129, or email him at ephraim@omglenders.com.

Mortgage Rates

Mortgage Rates as of  Tuesday, May 15, 2012
Conforming Loan Rates
30 Year Fixed	3.940%	« calculate mortgage at this rate
15 Year Fixed	3.189%	« calculate mortgage at this rate
10/1 Year ARM	3.399%	« calculate mortgage at this rate
Jumbo Loan Rates
30 Year Fixed	4.352%	« calculate mortgage at this rate
15 Year Fixed	3.575%	« calculate mortgage at this rate
10/1 Year ARM	3.574%	« calculate mortgage at this rate
Rates change daily and vary by product. They are provided here to give you a general sense of current average California rates. Your rate will vary and depends on credit and other factors. Rates are not published on weekends. Source: Topix.com