Wishing you a weekend of

meaningful connections

with family and friends

Happy St. Patrick's Day!

Had a great time delivering St. Patrick's Day pop-by gifts today and seeing some of my favorite people. Wish I could visit more! I truly appreciate my loyal partners and clients, and am never too busy for your referrals!  -David

Top 10 Reasons to Sell Your Home During the Holidays

I like this list of Reasons to Sell Your Home During the Holidays.  A little counterintuition can go a long way! -David

Super cool holiday event coming up at the South Bay Galleria on December 6.

And here's the flashmob event with 5+ million hits that started it all in 2010

I'm proud to help sponsor this year's event and hope you'll join us!!
-David

Greetings from David & Heather

Dear Friends and Clients, I'm excited to introduce Heather Clark, my new business partner at South Bay Brokers.  If you haven't met her, you should!  Heather and her family are long time Beach Cities residents, contributors, volunteers, and homeowners. We're proud to be Your Partners in Beach Cities Real Estate!

We'd like to wish you and your family a belated Happy Hanukkah, an early Merry Christmas, and wonderful holidays all around!!!

Memorial Day Messes With Mortgage Rates

Mortgage rates across the state are near year-to-date lows, but locking them in this week may be difficult. As Memorial Day nears, and Wall Streeters get a head-start on the long weekends, trade volume in the mortgage bond markets will dip.

When bond volume drops, mortgage rates get jumpy. It's a relationship based more on scarcity than actual market fundamentals.

It works like this:

1. Conforming and FHA mortgage rates are based on the "market price" of a mortgage-backed bond
2. Mortgage-backed bonds can't be bought or sold without a buyer and a seller at a specific price

As Friday gets closer this week, and more and more Wall Street traders will leave for their "extended" 3-day weekend, and bond markets will be left with fewer and fewer participants. This will create a market situation in which it's harder to match a buyer and seller at any given bond price, resulting in larger mortgage rate shifts than usual.

These jumps in rates are exaggerated during periods of economic uncertainty like these. What's more, there's a lot of economically-important data due for release this week. That, too, can put markets in hysterics.

If this were a "normal" week, mortgage rates would be volatile. The coming of Memorial Day is just adding to the mix.

Mortgage rates may rise this week, or they may fall.  Either way, if you have the opportunity to lock something favorable, consider doing it.  Rates are low and likely won't last.

Realtor or Tangled King?

BCD reader Annie Wald reveals the true identity of your previously humble blogger! Have a blessed Good Friday and Easter. - David

Mortgage Rates May Be Low, But They're Tough To Pin Down -- Especially This Week

Mortgage rates are low right now but pinning them down this week could be a challenge. As Labor Day Weekend nears and Wall Streeters take their head-start on the holiday, trading volume will fall, which will cause mortgage rates in California to get jumpy.

As mortgage rates change, so does the long-term cost of owning a home. Every 1/8 percent adjustment changes a household budget.

Meanwhile, the relationship between "vacation days" and mortgage rate volatility is an interesting one; based more in scarcity than market fundamentals.

Rates tend to get volatile near holidays because of two inter-related facts:

1. Conforming mortgage rates are based on the price of mortgage-backed bonds
2. Mortgage-backed bonds can't trade without a buyer and a seller at a specific price

So, as the week progresses and more traders leave for their respective "extended" 3-day weekends, there's fewer buyers and sellers left on Wall Street to connect for a trade.  As a result, mortgage bond prices move across larger gaps than on a "normal" day which, in turn, translates into faster, larger changes in rates.

This phenomenon can be exaggerated during periods of economic uncertainty -- like what we're in now -- and, furthermore, there's a bevy of important data set for release this week including the FOMC Minutes, inflation data, and August jobs figures.

In other words, rates would have been volatile without the vacation week. The presence of Labor Day just piles on.

Mortgage rates may rise this week, or they may fall.  Either way, if you have a chance to lock something favorable and within your budget, consider doing it.  Rates are at all-time lows and likely won't last.