San Diego Mortgage Rates - HIGHER After Rate Cut!

As a San Diego Realtor watching San Diego home mortgage rates, it seemed to me that they had actually increased after the 1/2 percent Fed rate cut. To confirm this, I contacted one of San Diego's largest home mortgage lenders. Here is his reply:

Please note that mortgage rates are very VERY individualized, now more than ever. Rates vary based on down payment, FICO score, type of property, and other factors. With that in mind, the "benchmark" that many people use to determine "rates" on a given day is the best rate available for a 30 year fixed rate "conforming" loan. This is a loan amount of up to $417,000 meaning that it is saleable to FNMA or FHLMC.

As you requested, I have priced out the 30 year fixed rate loans for 3 days September 11th (one week before the fed rate cut) September 18th (the day of the fed rate cut) September 25th (one week after the fed rate cut).

You can pretty clearly see that mortgage rates (in anticipation of a rate cut) had already factored Fed action into the pricing models used on September 11th.

Yes, it is true that rates are now actually HIGHER than they were prior to the fed rate cut. Here is the info.. 10 year treasury bond (closing price)
September 11th 4.36%
September 18th 4.48%
September 25th 4.60%

30 year fixed rate mortgages that we offered to our BEST customer on a fully documented loan on the same 3 dates

September 11th 6.00% at a cost of 1 point
September 18th 6.125% at a cost of 1 point
September 25th 6.25% at a cost of 1 point

As always, customers can always choose to take a higher rate for a lower cost, or to pay more points to get a lower interest rate. Ed. note: To contact this San Diego mortgage lender, send me an email. San Diego real estate brokers

12,000 Mortgage Loan Layoffs

Countrywide, the nation's No. 1 home lender, said yesterday that it would cut as many as 12,000 jobs, or about 20% of its workforce. It said the downturn in the housing market and the credit crunch related to sub-prime loans have created the worst conditions ever seen by the modern mortgage industry.

Countrywide Chairman Angelo Mozilo said in a letter to employees yesterday. "Unfortunately, the only way to accomplish this is to make significant reductions in our workforce, in fact, this current cycle is certainly the most severe in the contemporary history of our industry."

Our first post about possible Countrywide layoffs was 9-26-06 National Home Price Drop..Catching up to San Diego’s Continuing Slide. Our other post about Countrywide was: Subprime Loan Implosion, Subprime Home Mortgage Lenders in Big Trouble, Largest US mortgage lender Takes a Big Foreclosure Hit, #1 US Mortgage Company to Go Bankrupt?, Countrywide Has Started layoffs …Thousands Could Be at Risk

799% Increase in California Home Foreclosures

Foreclosures hit 17,408 for the three months ended June 30, for an increase of 799 percent from the same period in 2006. These foreclosure numbers well exceed the prior 1996 high.

Rich Toscano, with Pacific Capital Associates in San Diego said: "There will be individual pain for people who made the wrong decisions. We all may end up in a recession."

Tags: foreclosures, San Diego real estate, housing bubble, real estate bubble

downtown San Diego real estate

San Diego's Top Real Estate Website

www.brokerforyou.com set a new record for unique visitors to their San Diego website in June 2007.

We are NOT talking website 'hits' here, but just one visit per IP address counted in a 24Hr. period! With the average real estate website running appx. 150 unique visitors per month, www.brokerforyou.com had over 220 times MORE real estate traffic!

Facing foreclosure? 9 options

Facing foreclosure? 9 options - MSN Money: "Check your options, get help, be realistic -- and most of all, don't dawdle.

By Liz Pulliam Weston

Real estate markets are slowing. Interest rates are ticking up. And the phones are ringing at ByDesign, a Los Angeles-based credit counselor, as homeowners start to panic about not being able to make their mortgage payments.

'The number of people asking for appointments to talk about foreclosure is definitely up,' said Susan Ulaga, the nonprofit service's senior vice president of counseling. Rising rates 'are really putting a crunch' on homeowners with adjustable-rate loans." San Diego downtown condominiums

San Diego market direction

Visit my new San Diego real estate blog for full info on what is going on in the San Diego real estate market bubble.



You can view the real estate blog at:
http://www.brokerforyou.com/brokerforyou

Search the San Diego MLS

Search the entire San Diego MLS. Visit:
http://www.brokerforyou.com/san-diego-real-estate-mls-home-listings.htm