[quote=Bill@YourFhaGuru.com]Home prices have firmed and are rising in most San Diego housing markets. Now is the time to buy for best home values.
Rates have dropped the last few days to recent lows. Today I have 4.625% and one point, 4.747% APR for a 80% conventional conforming loan with a 740 or better FICO score.
If you are shopping for a home loan below are some recent articles that should help.
I hate Bill, Bill sucks, nobody click on Bill’s crappy links. Spammer go home.
Now that I got that out of the way, the little ticks in the rate aren’t going to cause any rises, it’s been low 5’s for a while now, 1/4 points don’t cause spikes in prices. A full point on a 250k loan is $100 a month, so a 1/4 is $25 a month, people don’t bid another 50k because of a $25 savings. Anything around or below 6% keeps things moving like they are, if it were to begin to climb, there might be some panic buying since some believe inflation and rate increases are in the cards at some point(myself included). The other thing is that escrows are usually longer than lock periods, so if you make an offer today based on today’s rate, by the time you are within range to lock, the rate has changed, hopefully it’s lower, but below 5 doesn’t usually last long, you probabaly are already in escrow when those come along. Low rates do spur refi activity, because you can act quicker and lock quicker.
What Sd said, lack of inventory is what is causing the minor rises where they are seen, more buyers than product. Even though I don’t buy into the massive shadow inventory theory, there should be a steady supply of inventory coming to the market and less buyers this winter, so the opposite should occur, prices should tick down or go “A” cup with less bidding wars, then again, “should” doesn’t always happen as it looks on paper.
