Rates are up today!  The 30 year conventional is up to 4.65%! Just a month and a half ago we were in the mid 3.5 % range!  Now we are 1.15% up from there!  Where are they going next?  My guess is above 5% in the next 6 months.     What's up this week!  FOMC Minutes And Treasury Auctions               Today:no significant data       Tuesday:no significant data       Wednesday:FOMC Minutes       Thursday:Jobless Claims, Prior 343K , Consensus 337K.Import Price Prior -0.6%, Consensus0.1%Export PricesPrior -0.5%, Consensus-0.1       Friday:Producer Price Index, Prior 0.5%, Consensus0.5%                       Dow is trading at 15,239  +104.2the 10 yr bond is at 2.66 from 2.68 Friday, . Currently point structure is higher from Friday               Conv. – 4.625%       FHA. -  4.375%        La... 07/08/2013

Mortgage rates are set to climb and I can see the 30 year at 5% plus by the end of the year. What effect will this have on the housing market?  Please read the article that I have linked here by John Rubino http://dollarcollapse.com/housing-bubble/thinking-about-5-mortgages/       The Day Ahead:Factory Orders   Looking past volatility in many readings, factory growth is steady at a moderate pace. New Factory Orders rose 2.1 percent in May following a revised 1.3 percent rise in April. But commercial aircraft orders, which are always volatile month-to-month, are skewing the results higher. Excluding transportation equipment, new orders rose 0.6 percent in May, which is very respectable, following a 0.2 percent gain in April. A back-to-back gain isn't that common right now for the manufac... 07/02/2013

Well a 5% 30 year mortgage will place us back into a stagnant housing market, and will greatly slow new home building.  I have attached a great article by John Rubino on the subject- Thinking About 5% Mortgages         3inShare by John Rubino on June 26, 2013 · 6 comments They say that one sign of creeping old age is that memories from past decades are more vivid than those from past days or weeks. They’re right. I don’t remember what I had for lunch yesterday but clearly recall bragging about refinancing our mortgage for 6% back in the early 2000s. That was a killer rate at the time, and my thought was that if banks were dumb enough to give us such cheap money for 30 years, then we should take as much as possible. This illustrates the relaxed attitude about debt that a lot of baby boom... 07/02/2013

I really can't understand what Washington is doing!  They are talking about "tapering" and most of the world economies are in a recession!  There is no inflation out there, and the housing market is finally bouncing back!  Then they couldn't even vote on the college loan interest rates and they doubled today.  Where did we find these "clowns" in Congress?  I want to vote them all out!  Could the new ones be any worse?   See my web site at www.myslohomefinder.com for all your real estate needs in San Luis Obispo County.      The Week Ahead           June proved a solid month for the ISM's sample with the manufacturing index coming in slightly higher than expected at 50.9 to indicate slight growth from what was a weak May at 49.0.Construction spending was mixed in May with divergent movem... 07/01/2013

Higher rates are hurting the housing market.  Here are some key points-   1. A one percent increase in mortgage rates= -13.4% decrease in affordability. 2. 30 year fixed mortgage at the highest level in 2 years. 3. 30 year fixed rate mortgage rises to 4.46% up from 3.93% two weeks ago.  And up from the 3.35% a month and a half ago! 4. We had the biggest weekly jump for the 30 year fixed rate mortgage in 26 years. 4. Mortgage applications are down 3% from last week. 5. Median sales price for a new home down 3.1% to $263,000 as sells make concessions.   Please visit our web site at www.myslohomefinder.com for more information and buyer and sellers housing search MLS links.  We specialize in Atascadero ca homes for sale, paso robles ca homes for sale, templeton ca homes for sale, san luis ... 06/29/2013

There is a lot of debate out there if the Fed can really "taper off?"  If you recall the 1930"s when the Feds "tapered off" too much and the economy went down again?  Will this happen again? The Day Ahead: PMI, Consumer Sentiment           Growth in business activity has slowed sharply this month based on the Chicago PMI which came in at 51.6, down 7.1 points from May.Consumer Sentiment held steady and positive this month with slight weakness in the first half of the month offset by strength in the second half. The index ends June at 84.1 vs 82.7 at mid-month which points to an 85 to 86 pace the last two weeks. The index ended May at 84.5.   Dow is trading at 14,948  -79.0the 10 yr bond is at 2.52 from 2.51Yesterday, . Currently point structure is unchanged from Yesterday   Conv. – 4.2... 06/28/2013

Home prices are heading higher, but with every 1% increase in interest rates, it means a 13% drop in affordability.  So, yes, eventually if mortgage interest rate increase too much, we will see it reflected in lower sales.   The Day Ahead: Jobless Claims, Personal Income, Pending Home Sales Index       The general trend for Jobless Claims is favorable though the improvement is far from dramatic. Initial claims for the June 22 week fell 9,000 to 346,000 which is right at the Economist consensus for 345,000. The 4-week average, at 345,750, is down 2,750 in the week and is very slightly below the month-ago comparison. The consumer sector made a comeback in May with income and spending improving. Personal Income gained 0.5 percent after a 0.1 percent rise in April. Expectations were for a 0... 06/27/2013

Higher interest rates have slowed mortgage applications.  Mortgage applications are down 2% from last week, and with each increase more buyers are not able to afford homes. Average for the 30 year fixed is 4.46% This is a 1.11% above the rates from just a month ago! Check out my web site at www.myslohomefinder.com for all your San Luis Obispo County home search needs.  We specialize in homes for sale in Atascadero ca, homes for sale in Paso Robles Ca, homes for sale in Templeton Ca, homes for sale in San Luis Obispo Ca, homes for sale in Pismo Beach Ca, homes for sale in Avila Beach Ca, homes for sale in Shell Beach Ca, homes for sale in Arroyo Grande Ca, homes for sale in Nipomo Ca, homes for sale in Oceano Ca, homes for sale in Grover Beach Ca, homes for sale in Morro Bay Ca, homes fo... 06/26/2013

Rates are down slightly, and home prices went up the most in the last 7 years.  Home prices are up 12.1% from a year ago, and up 2.5% since March.  But recent reports from Redfin say that there are signs that housing is slowing down due to the interest rate increasing.  Redfin CEO Glenn Kelman was interviewed today and reported that new customers looking to buy had decreased by -11%!  He reported fewer bidding wars are taking place, and houses are staying on the market longer!  He added that people pre-approved already are buying at higher rates as they see interest rates rise.  We here at www.slohomefinder.com have also noticed this trend with buyers!  We have had 2 buyers say they were going to continue to rent since the rise in interest rates would make their payments to much to hand... 06/25/2013

Interest rates are way up!  The ten year note is shooting up too!  We'll have to see when the higher rates will slow down price increases!   Go to our web site www.myslohomefinder.com for all your San Luis Obispo County home search needs!     The Week Ahead: Volatility is the Name of the Game               U.S. stocks got off to a rough start today as persistent worries about the Fed easing up on stimulus were exacerbated by a plunge in Chinese stocks.As investors dumped bonds, yields continued to rise, with the yield on the 10-year Treasury note hitting 2.65% early this morning. That's its highest since August 2011.   Tuesday: Durable Goods Orders, Prior 3.3%,Consensus 3.3%.New Home Sales, Prior 454K,Consensus 460K.   Wednesday:GDP, Prior 2.4%,Consensus 2.4%.   Thursday:Jobless Claims,... 06/24/2013

In our constant research to inform our clients and blog readers the status of mortgages and real estate prices, we talk, off  the record, to a number of sources in the real estate and banking industry.  Most of our sources agree that we are looking at higher interest rates in the future.  As the market goes back to its traditional percentages we are looking at the 30 year in the high 4% range for the next year, and possibly breaking 5% in a year!  In January 2012 we called the bottom of the real estate market, and told our clients and blog readers it was a "screaming buy!".  I just heard from one happy client that purchased a golf course home for $445,000 and just  had it appraised at $650,000!  Please contact us if you have one of these success stories, and we will compile them into a ... 06/22/2013

Rates are going up!  The conventional 30 year mortgage is at 4.25%!  All of the trend lines are broken, and we are going up from here! Check out my web site at www.myslohomefinder.com for all your home search needs in San Luis Obispo County.     What's ahead today- Absence of Data, Presence of Hope               Now it is a waiting game to see where the support in treasuries will be.           Dow is trading at 14,800  +42.32the 10 yr bond is at 2.42 from 2.38 Yesterday, . Currently point structure is slightly higher from Yesterday       Conv. – 4.25%   FHA. -  4.125%   Last year - 3.86%         Have a great Friday and a super weekend!     06/21/2013

The news that Chairman Bernanke wants to start to taper off put a big scare into the market.  Also bad news about China's manufacturing slowing and credit bubble dropped commodities and developing and resource exporting nations.  Mortgage rates are up today, and we expect them to rise much more!   See our web site at www.myslohomefinder.com for all your San Luis Obispo home search needs.  We specialize in homes for sale in Atascadero Ca, homes for sale in Paso Robles Ca, homes for sale in San Luis Obispo Ca, homes for sale in Morro Bay Ca, homes for sale in Cayucos Ca, homes for sale in Cambria Ca, homes for sale in Pismo Beach Ca, homes for sale in Nipomo Ca, homes for sale in Oceano Ca, homes for sale in Grover Beach Ca.   The Day Ahead: Jobless Claims, Home Sales, and Philly Fed     ... 06/20/2013

    What's up today? Some Data, but FOMC Wednesday Looms Large                   CPI inflation was essentially at expectations, showing only modest inflation pressures. The Consumer Price Index for May made only a partial rebound at the headline level, rising 0.1 percent after falling 0.4 percent in April. The May number posted slightly lower than market expectations for a rise of 0.2 percent.Housing appears to still be on a moderate uptrend-but the numbers have been volatile and monthly averaging seems like a good idea. Housing Starts in May rebounded a monthly 6.8 percent after plunging 14.8 percent in April. The May starts annualized level of 0.914 million units came in somewhat below analysts' forecast for 0.955 million units and was up 28.6 percent on a year-ago basis.FOMC Meeting ... 06/18/2013

Happy Monday to all! Rates are up slightly this morning.  We have a lot of action coming up this week, and the Feds. are having their meeting on Tuesday. Please go to my web site www.myslohomefinder.com for all your San Luis Obispo home search needs. The Week Ahead: Setting the Tone for 2nd Half of 2013                   With Home Prices now rising sharply, the housing sector is the economy's leading strength right now -- and home builders are at the front of the action. The housing market index is up a very sharp 8 points this month to 52. The monthly point gain is the largest since the 2002 recovery with the index level above 50 for the first time since the 2006 boom years.           Tuesday: FOMC meeting begins.  Consumer Price Index, Prior, -0.4%  Consensus, 0.2%. Housing Starts, Pr... 06/17/2013

As you would expect refi's are way down with the increase in the 30 year and 15 year mortgages.  The 30 year has gone up about .75% in the last month.  I have included some great charts that show how the rates have gone up.    Yield Curve as of 2013-06-11  Click on picture to make larger! As one should suspect, mortgage rates have been rising in conjunction with the rise in treasury rates. Here is a chart from Steen Jakobsen, Chief economist at Saxo Bank in Denmark.Note the annotation "30 Yr mortgages rate is up 76 basis points on the year with no growth increase". the phrase "no growth" pertains to lack of growth in the overall US economy.BankRate notes the following 3-month trends.30-Year Mortgage Rate15-Year Mortgage Rate5/1 ARM Mortgage Rate The Day Ahead: No significant data, The M... 06/12/2013

Home prices nationwide have risen 12.1%!  This is the largest rise since February 2006!  What will be the effect of the interest rates at 4% and above will be the big question in the future.  The states with the highest home appreciation are- 1. Nevada +24.6% 2. Californa + 19.4% 3. Arizona +17.3% These statistic are from Corelogic.  Thanks to Corelogic for supplying these to us.   Visit our web site a www.myslohomefinder.com for all your San Luis Obispo County home search needs.     What's up today: Lightest Day of Data               The U.S. trade balance in April widened on a rise in imports-surprisingly for non-petroleum imports. The trade gap grew to $40.3 billion from $37.1 billion in March. The consensus forecast was for a deficit of $41.2 billion. Exports rose 1.2 percent after ... 06/04/2013

Rates are starting to go up!  The Fed. has been making statements about "tapering off" buying U.S. Treasuries and that means higher home mortgage rates.  I think the over heating housing market and the better jobs market are triggering this.  Also we are see huge amounts of foreign investments coming to the "good ole" U.S. because of all the problems in the rest of the world. See my web site at www.myslohomefinder.com for all your San Luis Obispo home search needs.       The Day Ahead: Month-End, Econ Data, and Technical Resistance                   The consumer sector may be losing some steam. In April both Income and Spending were weak. Inflation also was quite soft. Personal income in April was flat after a 0.3 percent rise the month before. The latest figure came in lower than the c... 06/01/2013

Rates have spiked up to 4%!  Yesterday was the worst day for mortgages since  "Black Wednesday May 27th of 2009".  The Fed. has signaled a withdrawal for QE and purchases of treasuries.  This is big!  I'm telling all my buyers that are on the fence to get it while you can! See my web site at www.myslohomefinder.com for all your San Luis Obispo County home search needs!     The Day Ahead:No significant data               Yesterday was the worst day for MBS and mortgage rates since 'Black Wednesday,' on May 27, 2009.  A lot has changed in those four years and a lot of the most significant parts of the most significant change has happened in 2013 with the month of May being the main staging area for such things, followed closely by January and February.  The significant part in question is... 05/29/2013

Interest rates are heading higher!  The market was rattled by the news out from the Fed. that they were going to "tapper" off the buying of treasuries and slow down the QE process! This will led to higher interest rates and place a slowing effect on the housing market! Check out my web site www.myslohomefinder.com for all your home search needs in San Luis Obispo County. The week ahead:                     Durables Orders for April came in better than expected. However, on average for the core, this means that manufacturing merely is less sluggish than believed last month. New factory orders for durables in April rebounded 3.3 percent after dropping a sharp 5.9 percent in March (originally down 6.9 percent). Analysts expected a 1.1 percent increase. The transportation component gained 8... 05/27/2013