Ed's Blog

Here's a recent market update that I sent to my clients:

Here is a quick summary of this market update. I’ll be following up on these themes with more email updates, blogs, and postcards in the next month or two.

     1) If You Haven’t Refinanced Yet- Don’t Delay Any More. Rates Are    Rising.

     2) Jumbo Loans (over $729,750) Are Finally Improving- We’ll Update You As Time Goes On.

     3) Good Time to Buy a Home or Investment Property- Median Prices Have Risen 4 Straight Months.

     4) Top 3 Mistakes People Are Making Today.

1) Good News, Bad News, Good News About Mortgage Interest Rates-

First the First Good News. The economy looks like it’s at or near bottom, and a recovery may be just around the corner. I know it seems unlikely, but there are a variety of signals that have been coming in lately.

The Bad News. Bond investors hate good economic news because it usually means higher inflation. So interest rates will be moving up. In fact, they’ve already started. Some mortgage rates are already up ½% from their all time lows. For you procrastinators out there, give us a call. I know from speaking and emailing with a number of you that many of you can still save a lot of money, but the window is closing.

Second Good News. Interest rates are still very low. For example, a person with a loan of $417,000 and under can still refinance in the low fives. If you’re paying 5.5% or higher, a refinance can still potentially save you tens of thousands of dollars over the life of the loan.

2) Jumbo Loan Rates and Terms Improving Slowly But Surely-

Many of you in the jumbo loan category (over $729,750) have had to hear about all the great low rates only to find out that they don’t apply to you. It looks like that is starting to change. There are more lenders willing to be more competitive on jumbo loans. Stand by for updates.

3) The Residential Real Estate Market Is Improving-

Is now a good time to buy a home or rental property? Could be. Looks like we’re at a juncture where low rates and low prices have brought about a bottom to the residential real estate market. Although there are still problems ahead for the housing market- tough economy, more foreclosures- it looks like we’ve turned a corner. The SF Chronicle reported that median home prices in the Bay Area were up for the fourth straight month in July. I’m hearing the same thing from most of the real estate agents we work with.

For those of you interested in buying either a home or an investment property, give us a call at 415-406-2330 or send an email to ed@smithcraine.com. We can discuss your loan options, get you pre-approved, and help you find a good real estate agent and property.

4) Top 3 Mistakes to Avoid Today-

· Procrastinating on Your Refinance. Said it all above! Don’t let some lingering bad economic news lull you in to inaction.

· Trying to Hit the Bottom of the Interest Rate Market. In the quest to get the absolute “best rate” and save another $30 to $50 per month, some of you will be spending $200, $400, $600 or more monthly. Ouch! Only hindsight can tell you the best rate.

· Missing a Great Buying Opportunity. There are some risks with any great buying opportunity. The biggest is that you have to buy with no guarantee that prices will go up. Many people did not buy when stocks were at their lows earlier this year (DOW at 6,600+/- and now at 9,500+/-). Most now wish they had.

Don’t let these three mistakes keep you from saving money now, and/or buying a great opportunity.

We can help you fill out your loan application in an hour or less, and get you pre-approved for either a refinance or purchase in a matter of hours or days, and get you positioned to take action.

Hope you’ve had a great summer!