A MESSAGE FROM MY LENDING FRIENDS

Interest Rate and Market Update

The mortgage bond market got pummeled yesterday and we got multiple interest rate increases. From yesterday morning to this morning, interest rates went up by a full quarter percent (.25%), which is a significant day-over-day increase. From Thursday of last week, they have gone up by a full half a percent (.50%).

What caused this? Well, a few factors that have been in the making, but first I have to backtrack.

The first thing to know is that what has caused these extremely low rates throughout the year was the Fed’s guarantee that they would purchase $1.25 Trillion in Mortgage-Backed Securities (MBS). These securities – and the price they’re trading at – are what drive interest rates. With the guarantee that the Fed will buy packaged loans on the secondary market, banks know that they have a guaranteed buyer, which will free up liquidity for them to lend to other people. So the cycle continues … The Fed’s ultimate goal is to spur activity in the housing industry, which it has definitely done so, both in the purchase and refi markets.

Now, back to what has been happening this past week, and especially yesterday: it’s finally coming to a point where the Fed (after purchasing packaged loans) is also trying to sell them off, but is having trouble. We are relying on foreign investors, and foreign central banks, to buy our debts. So far they have done so, but some are starting to threaten that they will no longer buy. In addition, the 10-Year Treasury bond is a lot more attractive than the lower yields on MBS, and traders would much rather gain more money through the 10-Year Treasury, meaning that mortgage bonds will start to increase in price, meaning that interest rates go up.

I am definitely not an expert and there are so many other driving factors that we can’t even grasp our heads around, but this is just to give you an idea of one of the reasons rates are going up. I don’t see the steep uphill just yet, but the Fed-selling problem is definitely an issue that means we may have hit bottom a few weeks ago. Regardless, please remember that these interest rates are still amazing!

Irene

Granite Financial

 

408-257-1681

Single Family Home Inventory Continues to Fall

	Normal	REO	Short	Total
28-Apr	2455	385	1023	3863
5-May	2407	339	941	3687
19-May	2358	286	852	3496
26-May	2281	270	793	3344

 

 

KELLER WILLIAMS REALTY #1

Dear Associates,

Once again – you have blown us away!   We are proud to announce that two of the most prestigious research and media organizations in our industry have confirmed what we believe is one of the most awesome trends in real estate: As our competitors slip backwards, Keller Williams Realty is gaining ground.   The annual RISMedia Power Broker Survey and the REAL Trends 500 Report, recently released, offer definitive proof of this trend.   This year, Keller Williams Realty had more brokerages — based on closed transactions and closed volume — on both lists than any other real estate franchise. We also outranked all others on the reports in terms of number of agents added and total closed transactions.   On RISMedia’s Power Broker Survey, Keller Williams Realty again had the largest majority on the list — accounting for 35 percent of all the brokerages listed — 57 percent higher than any other real estate company.   As for REAL Trends: 143 Keller Williams franchises made the cut. We represent 25 percent of the entire report.  Click here to see our official press release on these results.   Let there be no doubt, the tide is turning toward Keller Williams Realty and it's all because of you!   Remember what Gary Keller says, “The ground we lose in this market we may never make up – but the ground we gain in this market, we’ll never give up.”   Yours in continued growth,

 

Mark Willis

Keller Williams CEO

 

INVENTORY DOWN - RATES CONTNIUE TO FALL

Current SFR inventory levels for Santa Clara County continues to decline.

 

	Normal	REO	SS	Total
28-Apr	2455	385	1023	3863
5-May	2407	339	941	3687
19-May	2358	286	852	3496

 

Lender’s Update

30 Year Conforming (up to $417,000 loan amount) = 4.50% Interest Rate

30 Year Conforming (up to $725,000 loan amount) = 4.75 % Interest Rate

 

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REO TOUR - CAMBRIAN DISTRICT (SJ)

Come Tour Bank Owned Properties in the sought after Cambrian District.  This tour is designed to give Buyers an idea of what to expect when Buying an REO property.  Usually the properties are in need of significant TLC, but some are move in ready.  They are generally priced to sell so serious Buyers need to be pre-approved and know what they are looking for!  These properties move quickly!

 

Saturday’s self-guided tour will preview 8 properties in just 2 hours.  Or you can pick and choose the properties of you want to see!

 

Contact me for more information! 

 

Hans

408-891-0212

 

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Hans Heller

Realtor

Keller Williams - Silicon Valley

(408) 891-0212 (cell)

(408) 583-3686 (office)

(408) 583-3687 (e-fax)

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http://www.PropertyofCalifornia.com

http://www.PropertyofCalifornia.blogspot.com

 

REO TOUR - SATURDAY, 5/2, 10:00-12:15

Are you looking to take advantage of the economic climate? REO's (Real Estate Owned, meaning foreclosed homes that the banks now own) and today's low interest rates offer the opportunity to do just that!

I'm Hans Heller, a local real estate agent with Keller Williams. Warren Buffet said, "Be fearful when others are greedy and greedy when others are fearful". If you have money to invest now is a great time to invest in real estate, either as a personal residence, investment property, of flip. I can help you. Every Satruday a group of Realtors and myself hold an REO tour, cycling through different communities throughout Santa Clara County.

THIS SATURDAY, 5/2, FROM 10:00AM-12:15PM

If you are interested in learning about the market and about how to take advantage of this market email/call/txt me and I will send you the updated list for this Saturday.

TOUR FORMAT

- (8) Properties
- Property 1 - 10:00-10:30
- Property 2 - 10:15-10:45
- Property 3 - 10:30-11:00
- Property 4 - 10:45-11:15
- Property 5 - 11:00-11:30
- Property 6 - 11:15-11:45
- Property 7 - 11:30-12:00
- Property 8 - 11:45-12:15

This market is changing overnight as REO's are being purchased quickly. That is why the addresses are not published. If we were to publish them on Wednesday, they may be SOLD by Saturday!

Remember, even if you just want to learn about the market we are happy to answer all of your question. Hope to see you out there!

Hans
408-891-0212
hanswheller@gmail.com