2013: Second Lowest Mortgage Rates on Record

From Grant Norris of RPM Mortgage/Platinum Capital:

Despite the steep rise in rates in 2013, the average rate for the entire year (4.25%) is the second lowest on record next to 2012's 3.75%.  The previous 3 years were each roughly 0.25% higher and 2008 was roughly a full 1.0% higher than that.  To make this easier to digest, here's a quick recap of that info:

2008 - 6.0%
2009 - 5.0%
2010 - 4.75%
2011 - 4.5%
2012 - 3.75%
2013 - 4.25%

  

Grant Norris

Fw: WSJ MARKETS ALERT: U.S. 10-Year Treasury Yield Hits 3%

‎Rates headed up!

David J. White
South Bay Brokers, Inc.
310-916-1533

From: WSJ.com Editors Sent: Thursday, December 26, 2013 8:15 AM To: david.white@southbaybrokers.com Reply To: access@interactive.wsj.com Subject: WSJ MARKETS ALERT: U.S. 10-Year Treasury Yield Hits 3%

The Wall Street Journal Markets Alert U.S. 10-Year Treasury Yield Hits 3% U.S. Treasury bonds fell Thursday, pushing the yield on 10-year notes to 3%, a threshold that may signal a new baseline for higher interest rates that could send ripples through the U.S. economy and global financial markets. The benchmark 10-year Treasury note's yield was at the highest level since September, marking the second time this year that the yield reached the 3% mark. See More Coverage » Follow Us Unsubscribe Email Settings Contact Us Privacy Policy You are currently subscribed as david.white@southbaybrokers.com. For further assistance, please contact Customer Service at support@wsj.com Copyright 2013 Dow Jones & Company, Inc. All Rights Reserved.

Home buyers face dilemma with shortage

Even the general media is beginning to admit it! Inventories are very low in most major cities, including the South Bay beach cities. But rates are even lower! – David

http://www.sfgate.com/business/networth/article/Home-buyers-face-dilemma-with-shortage-4342162.php

How low are current mortgage rates? From Money-Rates.com

Here are 3 convincing answers from www.money-rates.com on how low current mortgage rates really are.  Remembering the adage that "you live with the payment, not the price," and that interest comprises most of your mortgage payment in the early years, this is info that homebuyers need to be taking seriously!

Even the LA TIMES Thinks Now May be the Time to Buy!

Any time the LA Times writes about real estate, it's difficult to know whether to expect which theme will dominate: "doom" or "gloom."  So when they publish an article saying Now may be the time to buy a home, something big must be going on (or the business editor was vacationing).  There is: interest rates are on the upswing as we've been saying for some time.

Don't lose sight of the fact that higher rates reduce affordability, so potential sellers should be as interested in this news as potential buyers.

Now if you check the reader-submitted comments accompanying the Times article online, you're bound to see the doom and gloomers arguing for waiting till rates go up, thinking this will cause prices to crash.  These folks miss two critical points: the crash already happened (not sure how anyone could have missed that), and affordability is hugely impacted by rates.  - David

Boost Your 2010 Tax Deductions By Making Your January Mortgage Payment A Little Bit Early

Looking for an extra 2010 tax deduction? Consider making your January mortgage payment a few days early.

It's a simple strategy that works because of how mortgage interest works.

Unlike rent which is paid in advance at the start of a month, mortgage interest is only paid after it's been borrowed. Your January mortgage payment, therefore, accounts for the interest that accrued in December.

And for a lot of homeowners, that mortgage interest is tax-deductible.

By making January's mortgage payment in December, eligible homeowners can apply the interest paid to 2010's tax returns instead of waiting to claim the same deduction against 2011. Don't cut it close, though. It's best to remit payment prior to the last week of the month, leaving your servicer ample time to receive and process your paperwork.

Most importantly, though, before prepaying on your mortgage, talk to your tax professional.

Not every homeowner is eligible for mortgage interest tax deductions, nor should every homeowner itemize their respective tax deductions. The "pay early" plan could be a wasted effort for you, ultimately, depending on your taxpayer profile.

If you don't have an accountant that you trust, call or email me anytime; I'm happy to make a recommendation to you.