Socialize
Despite the federal tax credit ending last week, California has extended the credit for first time homebuyers and new construction home buyers. This swill be good for real estate sales in Santa Clara County, but probably will not effect sales in Saratoga, Los Gatos, Monte Sereno and surrounding areas.
Today I spoke with Dan at the title company, who told me that May is expected to be a very good month for real estate closings, based on opened escrows. April 2010 was almost double the monthly average of closings and there were many buyers who brought in checks by last Friday, April 30 in order to take advantage of tax credits.
On the financing front, Dan reported that they were now seeing a few mortgage loans above the $729,750 standard, which means they are typically being portfolioed by a few lenders such as HSBC, US Bank and First Republic Bank.
Private Mortgage Advisors (Wells Fargo) is now offering 15% down program with no mortgage insurance. This reflects a more generous, but still cautious mortgage lending environment. Home sellers need to understand that homes priced above $858,000 require substantial cash down payments on the part of buyers!
Mortgage rates continue to stay flat due to luke warm economic reports and uncertainty over the Greek crisis and potential bailout. Here are quotes from PMA from earlier this week:
Non-conforming Loans (greater than $729,750)
30 Year Fixed: 5.250%
15 year fixed: 4.375%
5/1 ARM: 4.125%
High Balance Conforming Loans ($417 K to $729.75 K)
30 Year Fixed: 5.500%
15 Year Fixed: 5.500%
7/1 ARM: 5.250%
5/1 ARM: 5.250%
Conforming Loans ($417 K and under)
30 Year Fixed: 5.125%
15 year fixed: 4.375%
7/1 ARM: 4.125%
5/1 ARM: 3.875%
Rick Bonetti | APR Referral Network | 408-857-8800 | DRE #01237009