Monday Market Update

Study Reveals Housing Market To Be At Its "Healthiest" Level since 2001
http://dsnews.com/news/04-02-2015/study-reveals-housing-market-to-be-at-its-healthiest-level-since-2001

3 signs California housing is on the brink of something huge

From HousingWire via Kira Limongelli of American Capital: 3 signs California housing is on the brink of something huge

No bubble, even in hottest home markets!

No bubble, even in hottest home markets, a new report says - latimes.com:

'via Blog this'

CPA Letter Daily article from: cpa@smartbrief.com

David White (cpa@smartbrief.com) thought you might be interested in checking out an excerpt from CPA Letter Daily.

Clear comeback in progress. Interest rates and inventories at record-setting lows! - David

Fed's Beige Book notes housing-market gains

The Federal Reserve's Beige Book says the housing market is experiencing "widespread improvement." The central bank's anecdotal round-up of its 12 districts also says the overall economy has had only modest growth in recent months.  RTT News (10/10), Fox Business/Dow Jones Newswires (10/10)

SmartBrief   |   555 11th St. NW, Suite 600   |   Washington, D.C. 20004

Housing Affordability Soars to Record High | Realtor Magazine

Nationwide, housing affordability is now at Record Highs.  In the South Bay, our market has really heated up, having stabilized last year.  YOU WON'T READ THAT IN THE NEWSPAPERS, because good news doesn't sell newspapers.  Better to look at the actual facts, which you can find continually updated in the "South Bay Market Data" tab at the Beach City Digs blog!  Or give me a call for the straight scoop in the Beach Cities.

A few teasers: 35% of our current sales are ALL CASH (these are smart buyers who know what they are doing).  And about the same percentage are multiple offer situations.  All of this going on while interest rates are at 50-year lows.- David

P.S.  Know of someone who needs to buy or sell a home in the South Bay?  Give me a call with their name and number and I'll take great care of them (yep, that was a shameless plug). -D

One Site's Top Ten Cities of Interest to Buyers

Might not have guessed that Riverside and Oxnard were among the top ten cities in demand, but who's to doubt the search statistics of a popular real estate site?  Here, according to Forbes via Trulia, are the Cities Where People Are Hunting For Homes. - David

Do the Research: South Bay Home Inventories are Not High!

Do the research! Here are the actual levels of single family homes for sale in the South Bay Beach Cities and El Segundo.  

Note that although many factors would characterize this as a "Buyers Market," the level of inventories is low.  This represents an opportunity for sellers to list their properties at a time when competition is quite limited, and when low interest rates make mortgages affordable to your target buyers.  This is a "seam" in the marketplace that smart sellers can use to their advantage. 

Charts like this and in much greater detail, updated daily, are always available at www.BeachCityDigs.com by clicking on the "South Bay Market Data" tab.   - David

No Help For Housing In Bernanke's Operation Twist

Tough times in housing include the reduced effectiveness of the Fed's tools to enhance the housing market.  As discussed in this Forbes article, the Fed's attempt to flatten ("twist") the yield curve (attempting to reduce long term rates by shifting its holdings from shorter to longer term Treasuries) can't can't help the housing market unless buyers are willing and able overcome uncertainty and pull the trigger.

What's Ahead For Mortgage Rates This Week : July 25, 2011

Mortgage markets worsened last week as the Greek sovereign debt situation came closer to final resolution, and as the U.S. housing market showed signs of life.

After many weeks, European leaders agreed on a financial package for Greece that featured favorable loan terms designed to slow Eurozone contagion, along with a built-in, 37 billion euro "haircut" for private-sector investors.

The accord pleased Wall Street. Equities rallied after the announcement. Mortgage bonds sank.

Bonds also sank after a strong home builder confidence report Monday. 

Last week, conforming and FHA fixed mortgage rates increased in California and for the first time in 3 weeks. Adjustable-rate mortgages slipped slightly.

The interest rate spread between the Freddie Mac 30-year fixed rate and 5-year ARM is back near its all-time high.

This week, mortgage rates will be guided by Congress's on-going U.S. debt ceiling debate. The United States government is expected reach its legal $14.294 trillion debt limit August 2, 2011. Congress must either vote to raise the debt ceiling, or take steps to reduce debt prior to August 2.

The debt ceiling was last raised February 12, 2010.

It's unclear in which direction Congress will vote. Therefore, mortgage rates may be erratic until a deal is reached. If the debt limit is raised, expect mortgage rates to rise. This is because carrying high levels of debt can devalue the U.S. dollar and mortgage bonds are less valuable as the dollar weakens.

On the other hand, if Congress votes to make cuts in the budget, mortgage rates should fall. This is because fewer treasury securities will be issued, creating fewer inflationary pressures on the U.S. economy. Inflation is linked to higher mortgage rates.

Also this week : New Home Sales (Tuesday), Pending Home Sales (Thursday), Consumer Sentiment (Friday), plus Treasury auctions of 2-year, 5-year and 7-year notes. Each event can move mortgage rates so be ready to lock at a moment's notice. 

Mortgage rates remain low. By August 2, they could be much higher.