How Could Mortgage Rate Upswings Impact Housing?

Freddie Mac has released its February Insight report, which “looks into the effects of higher mortgage rates on home buyers, homeowners wishing to refinance, mortgage lenders, home builders and real estate agents.” For this latest Insight report, Freddie Mac economists have looked at how rising mortgage interest rates could impact the housing market, as well as what ripples past increases have caused.

To begin, Freddie’s Insight Report looks back at a historical period when mortgage interest rates were at their highest in recent memory: the years between 1977 and 1981. In 1977, the interest rate for a new 30-year fixed-rate mortgage was 8 percent. Four years later in 1981, that same mortgage would have included an 18 percent interest rate. As the Insight report explains, “This was the most dramatic increase in mortgage rates in the last 50 years.”

What impact did this skyrocketing of mortgage interest rates have on the housing sector? Per the Insight report, new mortgage originations fell nearly 40 percent, from $162 billion in 1977 to $98 billion in 1981. Annual single-family home sales dropped 36 percent, from 4.5 million to 2.9 million. Finally, housing starts for single-family homes dropped by over 51 percent, from close to 1.5 million to 705,000 by 1981.

“History has shown that periods of rising mortgage rates can be challenging for U.S. housing and mortgage markets,” said Len Kiefer, Deputy Chief Economist, Freddie Mac. “In historical episodes of rising rates, home sales slipped, housing starts stalled, and mortgage originations swooned. Home builders are doubly affected by increasing mortgage rates because they use financing to fund construction costs. When interest rates on funding for new construction and mortgage rates rise simultaneously, home builders are squeezed by a fall in demand and an increase in costs. However, though rates have moved higher recently, mortgage credit is still historically cheap if borrowers can get in while the getting is good.”

So where does Freddie project mortgage interest rates to go in 2018, and what would the impact of those changes be? The Insight report says that if rates continue to hover between 3.5 and 4.5 percent and inflation remains low, originations, home sales, and housing starts should each increase by 5-10 percent this year.

If, on the other hand, rates spike by 1.5 percentage points, Freddie forecasts originations to fall by 30 percent, with home sales and starts also dropping between 5-11 percent.

Kiefer asks, “If rates rise, will housing markets follow the historical precedent, or will they buck the trend and maintain momentum? It's uncertain, but with a solid labor market, rising household incomes, and a demographic tailwind from a large young adult population coming of age, U.S. housing markets could show modest growth this year even with higher mortgage rates."

You can read all of Freddie Mac’s Insight reports by clicking here.

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Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

New Reality? Buyers Face Fewer Choices

Many markets are seeing so few new listings that they may not be able to meet the strong buyer demand heading into real estate’s traditionally busiest season. Listings are down more than 7 percent compared to a year ago across the country, according to the latest data by the National Association of REALTORS®.

Where Homes Are Selling the Fastest

Realtor.com® inventory data shows the following metro areas had listings that stayed on the market the shortest amount of time in January:

  • San Jose-Sunnyvale-Santa Clara, Calif.: 43 days
  • San Francisco-Oakland-Hayward, Calif.: 47 days
  • San Diego-Carlsbad, Calif.: 55 days
  • Seattle-Tacoma-Bellevue, Wash.: 57 days
  • Nashville-Davidson-Murfreesboro-Franklin, Tenn.: 58 days
  • Vallejo-Fairfield, Calif.: 58 days
  • Greeley, Colo.: 58 days

Source: National Association of REALTORS®

“Competition is likely to heat up even more heading into the spring for house hunters looking for homes in the lower- and mid-market price range,” says Lawrence Yun, NAR’s chief economist.

Read moreExisting-Home Sales Reach Decade High

Realtor.com® notes that the following markets are particularly very light on listings:

  • Chicago: -13% (active listings compared to a year ago)
  • Philadelphia: -14%
  • Washington: -15%
  • Seattle: -17%
  • Minneapolis: -18%
  • St. Louis: -12%
  • Baltimore: -16%
  • Cleveland: -18%
  • Orlando, Fla.: -19%

On the other hand, home shoppers may find more choices this year in a few select markets. Notably, Las Vegas is seeing an 18 percent increase in active listings compared to a year ago; Pittsburgh is seeing a 9 percent increase; and Houston and San Antonio are posting a 6 percent increase.

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Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

NAR: Disconnect Between Homebuyer Aspirations and Realities

Eight out of 10 non-homeowners recently surveyed by the National Association of REALTORS® (NAR) identify owning a home as part of the American Dream. Their realities—limited affordable housing, perceived lack of a down payment, and student debt—are hampering those aspirations.

NAR’s Aspiring Home Buyer Profile, which analyzes 2016 data from its Housing Opportunities and Market Experience (HOME) survey, shows that despite the sentiment among non-homeowners leaning positive, the share of non-homeowners who believe it is a good time to buy a home steadily declined throughout the year, from 63 percent in the first quarter to 55 percent in the fourth quarter.

“Nearly all non-homeowners said they want to own a home in the future (87 percent), but it’s evident that higher rents and home prices—up 41 percent in the past five years—along with limited entry-level supply and repaying student debt have combined to make buying a challenging goal,” says Lawrence Yun, NAR’s chief economist.

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Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

Existing-Home Sales Have Banner 2016, Hitting Decade High

Existing-home sales had a banner 2016, amounting to 5.45 million—an increase from 5.25 million in 2015 and a decade-high from 6.48 million in 2006, according to the National Association of REALTORS® (NAR). Overall, 2016 was a “good year for the housing market,” says NAR Chief Economist Lawrence Yun.

“Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market,” Yun says. “However, higher mortgage rates and home prices combined with record low inventory levels stunted sales in much of the country in December.

“While a lack of listings and fast rising home prices was a headwind all year, the surge in rates since early November ultimately caught some prospective buyers off guard and dimmed their appetite or ability to buy a home as 2016 came to an end,” says Yun.

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Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

U.S. Foreclosure Activity Drops to 10-Year Low in 2016!

IRVINE, Calif. – Jan. 12, 2017 – ATTOM Data Solutions, curator of the nation’s largest fused property database, today released its Year-End 2016 U.S. Foreclosure Market Report, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 933,045 U.S. properties in 2016, down 14 percent from 2015 to the lowest level since 2006, when there were 717,522 U.S. properties with foreclosure filings.

The report also shows that 0.70 percent of all U.S. housing units had at least one foreclosure filing in 2016, the lowest annual foreclosure rate nationwide since 2006, when 0.58 percent of housing units had at least one foreclosure filing.

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Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

Buying Is Better Than Renting in Most Markets!

Buying a home is more affordable than renting one in 66 percent of housing markets in the U.S., with Cook County, Ill., Maricopa County, Ariz. and Miami-Dade County, Fla. among those with the highest buy affordability, according to ATTOM Data Solutions’ 2017 Rental Affordability Report. Renting a home, to compare, is more affordable than buying one in 34 percent of markets, with Dallas County, Texas, Kings County, N.Y. and Santa Clara County, Calif. among those with the highest rent affordability.

Predominantly impacting affordability are stagnant wages, which have lagged at a growth rate of 2.2 percent since one year ago, compared to home prices, up 5.7 percent, and rents, up 4.2 percent.

Rising mortgage rates, according to ATTOM Senior Vice President Daren Blomquist, could deal another blow to affordability. Average rates, which retreated since charging forward following the election, are currently above 4 percent.

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Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

2017 Real Estate Market Forcast

Listen to the California Association of Realtors Leslie Appleton-Young Chief Economist & Vice President

http://www.car.org/marketdata/marketforecast/

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Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

What Slowdown? Existing-Home Sales Rise in Unusual November

Existing-home sales increased 0.7 percent to 5.61 million in November, reports the National Association of REALTORS® (NAR), up from 5.57 million in October—reversing the typical trend toward a slowdown at this time of year. The November numbers, up 15.4 percent from last November, mark the highest sales pace since February 2007. The upward pull, according to the report, was driven primarily by activity in the Northeast, which grew 8.0 percent to 810,000.

“The healthiest job market since the Great Recession and the anticipation of some buyers to close on a home before mortgage rates accurately rose from their historically low level have combined to drive sales higher in recent months,” says Lawrence Yun, NAR chief economist. “Furthermore, it’s no coincidence that home shoppers in the Northeast—where price growth has been tame all year—had the most success last month.”

“With the holidays around the corner and weather getting frosty in much of the country, November is typically the slowest month of the fall,” says Jonathan Smoke, realtor.com® chief economist, “but this year it was abnormally strong. Last month, we saw the highest level of sales for November since 2006, and there was more buyer and seller traffic than there was in October.”

 

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Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

The Fed Raised the Rates…Now What?

For the first time in a year and only the second time in a decade, the Federal Open Market Committee (FOMC), the policy making arm of the Federal Reserve, voted on Wednesday in its eighth and final meeting of the year to raise the federal funds target rate by 25 basis points up to the 0.50 to 0.75 percent range.

With the labor market widely considered to be at full employment and the unemployment rate at a post-recession low of 4.6 percent, according to the November Employment Summary from the Bureau of Labor Statistics, members of the FOMC felt the time was appropriate for a rate hike.

“In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1/2 to 3/4 percent,” the FOMC said in its statement. “The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a return to 2 percent inflation.”

Analysts in the housing industry have been speculating for weeks as to what the effect of a Fed rate hike would be on mortgage interest rates and overall affordability. In the month prior to the Fed voting to raise the federal funds target rate, the average 30-year FRM rose by more than 50 basis points to a level above 4 percent for the first time in more than a year.

“While the Fed’s hike of 0.25 point in short-term interest rates may trickle down to long-term rate products like 30-year mortgages, the more immediate impact will be felt by borrowers with variable-rate mortgages and home equity lines of credit who can expect an increase in their payments at their next rate reset,” said Tim Manni, mortgage expert at NerdWallet. “Homebuyers shouldn’t be particularly concerned with today’s Fed move. Even with rates hovering over 4 percent, they’re still historically low. Most market observers are expecting a gradual rise in home loan rates in the near term, anticipating mortgage rates to stay under 5 percent through 2017. Of course, that’s barring any unforeseen economic event.”

Mark Fleming, Chief Economist with First American, estimated that the 25-basis point increase in the federal funds target rate will result in a decline in existing-home sales down to a seasonally-adjusted annual rate of 5.55 million—in October, National Association of Realtors reported an annual rate of 5.60 million for existing-home sales, highest in more than nine years—and that the year-over-year growth rate for nominal price appreciation will fall to 4.0 percent. Also, First American’s Real House Price Index (RHPI), which adjusts prices for purchasing power by considering how interest rates and income levels impact the amount a consumer can borrow, estimates that real house prices will increase by 4.4 percent by December 2017.

“In addition to the impact on existing-home sales and house prices, first-time home buyers will feel the most impact of the rate increase,” Fleming said. “In short, real house prices provide a more relevant way to compare changes in affordability over time because they are adjusted for differences in home buyers’ income and the impact of interest rates on financing costs. Increases in real house prices decrease consumer house-buying power and, therefore, affordability by the same amount.”

Realtor.com Chief Economist Jonathan Smoke stated, “Today’s Fed announcement is going to have the greatest impact on first time home buyers as they consider their monthly payment budgets. Rates will likely stay the same until about March so buyers considering a purchase in 2017 may want to consider getting into the market now. The Fed—and financial markets—will have to wait to see what comes of U.S. fiscal policies in the weeks and months ahead and how that impacts the economy and the potential for more inflation. Signs point to the Fed raising rates at least three times next year, and just like we’ve seen in the last month, mortgage rates will likely move proportionately in anticipation of those increases, as clear data emerges about stronger economic growth and inflation.”

National Association of Federal Credit Unions (NAFCU) Chief Economist Curt Long said that overall, the effect of the 25 basis point on U.S. households should be minimal, but at the same time, “for the millions of savers living on fixed incomes it surely comes as a relief, especially if it is accompanied by a forecast for more in 2017. To that end, the committee’s economic projections may hold more interest than the statement itself,” said Long. “For typical Main Street Americans, the move serves as a reminder to review the rates on their savings and borrowings and to shop around. They may find that even in a low-rate environment there are institutions willing to provide superior rates and higher-quality service than the big Wall Street banks.”

Long continued, “The Fed will not make any assumptions about President-elect Trump’s economic agenda. A large spending bill accompanied by tax cuts certainly has the potential to increase growth and inflation, paving the way for faster rate normalization in the coming years. But the Fed will stick to its wait-and-see approach.”

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Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

6 Tips to Speed Up Closings

DAILY REAL ESTATE NEWS | TUESDAY, DECEMBER 13, 2016

Home buyers in a hurry to move into their new house may be discouraged to know that the average time to close on a property is 50 days, according to Ellie Mae. But you can help your clients shorten the timeframe by encouraging a more focused home search and being proactive about paperwork, among other things. An organized buying process is particularly important for relocation clients and customers who are simultaneously selling, both of whom typically are working against tight moving deadlines. Share these tips with buyers to help them get a transaction completed in a shorter amount of time.

  1. Get pre-approved, not just pre-qualified. A pre-qualification is just a quick conversation with a lender who may glance at the borrower's credit score. However, a pre-approval is a more thorough review of their credit history. "It makes your offer look stronger," says Adriana Mollica, a sales associate with Teles Properties in Beverly Hills, Calif. "It also minimizes any surprises that may delay or force a cancelation during escrow."
  2. Urge clients to narrow their options. Buyers who have a long wish list of home features will rarely be satisfied by the houses they see. This is an opportunity to have a heart-to-heart with your client about whether their desires are plausible for the area and price range they are searching in, says Michael Shaffer, broker-associate at LIV Sotheby's International Realty in Greenwood Village, Colo. Have your buyers narrow their wish list down to their top must-have features, and encourage them to look at only those homes that fit the criteria.
  3. Look at homes that have lingered on the market. Homeowners who haven't been able to sell quickly enough are often the most motivated to negotiate a deal. Help your buyers understand the leverage they have when making an offer on a home that has been on the market for a long time. But remember that "a long time" means something different in various areas. "In some markets, that may be a week or two," Shaffer says. "In others, it could be a year or more."
  4. Don't make lowball offers. Tell your clients a strong offer doesn't have to meet the full list price — but it may mean vowing to make a larger down payment, offering up more earnest money, or accepting an early closing date. Sellers who have a sense of commitment from your buyer may be more likely to accept their offer, particularly as the end of the year nears.
  5. Waive contingencies — maybe. Contingency clauses are notorious for sparking delays, but your buyers should weigh whether to give them up. Some contingencies may be worth fighting for. Be certain your clients won't suffer from buyer's remorse or land in financial trouble if they waive contingencies.
  6. Put paperwork in order. Encourage your buyers to have at least three months of bank statements, pay stubs, and letters of explanation for any unusual expenses or financial gifts being applied toward a down payment. Even with a pre-approval, buyers will still need paperwork to finalize the transaction, and having it ready up front could save time. "In most cases, things get held up because paperwork and information isn't readily available," says Raena Casteel of the Casteel Little Real Estate Group in Tucson, Ariz.
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Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

Will Declines in Foreclosure Levels Slow?

Foreclosure Three BH

Foreclosures and foreclosure inventory levels have recently slowed in their decline, and this trend could become more apparent in the latest CoreLogic Foreclosure Report, set to be released on Tuesday December 13th. Compared to a year earlier, the foreclosure inventory nationally in September (the latest data reported by CoreLogic) was 31.1 percent lower, while the number of completed foreclosures was down by only 7.0 percent, according to CoreLogic’s September 2016 National Foreclosure Report.

Anand Nallathambi, President and CEO of CoreLogic, said that heading into 2017, prices, performance, and production (the three most important drivers of the real estate market) are all improving.

"Completed foreclosures have fallen by a total of more than 100,000 homes during the 12 months prior to September 2016,” said Nallathambi. “The decline in foreclosures in one of the drivers in the drop in vacancies, which is positive for homeowners and communities.”

Nationally, there were 36,000 completed foreclosures in September. This is a decline of 3,000 from 2015. The national foreclosure inventory included approximately 340,000 homes with a mortgage (under 1 percent) compared with 493,000 homes the year prior. The numbers made August’s foreclosure inventory rate the lowest it's been since August 2007. Additionally, 48 states and the District of Columbia posted a double-digit decline in foreclosures from the previous year.

CoreLogic also reported that the number of mortgages in serious delinquency (90 days or more past due, including loans in foreclosure or REO) declined by 24.8 percent from September of 2015.

“September’s serious delinquency rate dropped by 25 percent compared to a year earlier, the third consecutive monthly acceleration in the rate of decline,” said Frank Nothaft, Chief Economist for CoreLogic. "This improvement is continued evidence of the recovery in the housing market, especially given that the decreases were fairly uniform in most cities across the country."

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Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

Home Sweet Homeowner Tax Breaks

With the housing market improving in some regions of the country, many people are becoming new homeowners.

If you're among the new property owners, congratulations. You've just taken another step up the American-dream ladder and are a homeowner. Along with the joy of painting, plumbing and yardwork, you now have some new tax considerations.

The good news is you can deduct many home-related expenses. These tax breaks are available for any abode -- mobile home, single-family residence, town house, condominium or cooperative apartment.

And most homeowners enjoy tax breaks even when they sell their residence.

The bad news is, to take full tax advantage of your home, your taxes will likely get more complicated. In most cases, homeowners itemize. That means you're not living on "EZ" street anymore; you've moved to Form 1040 and Schedule A, where you'll have to detail your tax-deductible expenses.

For many homeowners, the effort of itemizing is well worth it at tax time. Some, however, might find that claiming the standard deduction remains their best move.

If you do find that itemizing is best for your tax situation, here's a look at homeowner expenses you can deduct on Schedule A, ones you can't and some tips to get the most tax advantages out of your new property-owning status.

Mortgage interest

Your biggest tax break is reflected in the house payment you make each month since, for most homeowners, the bulk of that check goes toward interest. And all that interest is deductible, unless your loan is more than $1 million. If you're the proud owner of a multimillion-dollar mortgaged mansion, the IRS will limit your deductible interest.

Interest tax breaks don't end with your home's first mortgage. Did you pull out extra cash through refinancing? Or did you decide instead to get a home equity loan or line of credit? Generally, equity debts of $100,000 or less are fully deductible.

What if you're the proud owner of multiple properties? Mortgage interest on a second home also is fully deductible. In fact, your additional property doesn't have to strictly be a house. It could be a boat or RV, as long as it has cooking, sleeping and bathroom facilities. You can even rent out your second property for part of the year and still take full advantage of the mortgage interest tax deduction as long as you also spend some time there.

But be careful. If you don't vacation at least 14 days at your second property, or more than 10% of the number of days that you do rent it out (whichever is longer), the IRS could consider the place a residential rental property and ax your interest deduction.

Points

Did you pay points to get a better rate on any of your various home loans? They offer a tax break, too. The only issue is exactly when you get to claim them.

The IRS lets you deduct points in the year you paid them if, among other things, the loan is to purchase or build your main home, payment of points is an established business practice in your area and the points were within the usual range. Make sure your loan meets all the qualification requirements so that you can deduct points all at once.

A homeowner who pays points on a refinanced loan is also eligible for this tax break, but in most cases the points must be deducted over the life of the loan. So if you paid $2,000 in points to refinance your mortgage for 30 years, you can deduct $5.56 per monthly payment, or a total of $66.72 if you made 12 payments in one year on the new loan.

The same rule applies to home equity loans or lines of credit. When the loan money is used for work on the house securing the loan, the points are deductible in the year the loan is taken out. But if you use the extra cash for something else, such as buying a car, the point deductions must be parceled out over the equity loan's term.

And points paid on a loan secured by a second home or vacation residence, regardless of how the cash is used, must be amortized over the life of the loan.

Taxes

The other major deduction in connection with your home is property taxes.

A big part of most monthly loan payments is taxes, which go into an escrow account for payment once a year. This amount should be included on the annual statement you get from your lender, along with your loan interest information. These taxes will be an annual deduction as long as you own your home.

But if this is your first tax year in your house, dig out the settlement sheet you got at closing to find additional tax payment data. When the property was transferred from the seller to you, the year's tax payments were divided so that each of you paid the taxes for that portion of the tax year during which you owned the home. Your share of these taxes is fully deductible.

Property taxes must be deducted as an itemized expense on Schedule A.

When you sell

When you decide to move up to a bigger home, you'll be able to avoid some taxes on the profit you make.

Years ago, to avoid paying tax on the sale of a residence, a homeowner had to use the sale proceeds to buy another house. In 1997, the law was changed so that up to $250,000 in sales gain ($500,000 for married, filing jointly) is tax-free as long as the homeowner owned the property for two years and lived in it for two of the five years before the sale.

If you sell before meeting the ownership and residency requirements, you owe tax on any profit. The IRS provides some tax relief if the sale is because of a change in the owner's health, employment or unforeseen circumstances. In these cases, the tax-free gain amount is prorated.

A ruling by the IRS in late 2002 could put more dollars in homeowners' pockets when they must sell before they qualify for the full tax break. The Treasury has defined the unforeseen circumstances that often force homeowners to sell and under which they now can get some tax relief.

Unforeseen circumstances

  • Death.
  • Divorce or legal separation.
  • Job loss that qualifies for unemployment compensation.
  • Employment changes that make it difficult for the homeowner to meet mortgage and basic living expenses.
  • Multiple births from the same pregnancy.

A partial exclusion can be claimed if the sale was prompted by residential damage from a natural or man-made disaster or the property was "involuntarily converted," for example, taken by a local government under eminent domain law.

Second home sales also can provide some tax benefits, but not as much as they did in the past, thanks to a law that took effect in 2008. Previously, you could move into your vacation property, live in the home as your primary residence for two years and then sell and pocket up to $250,000 or $500,000 profit tax-free. Now, however, you'll owe tax on part of the sale money based on how long the house was used as a second residence.

Foreclosure tax troubles

Unfortunately, thousands of Americans over the past few years have seen their homeownership dream crumble.

Many lost homes to foreclosure.

Others disposed of their homes via a short sale to prevent more drastic lender action. In a short sale, the mortgage lender allows you to sell the property for less than the outstanding loan balance and cancels the remaining loan balance.

At best, struggling homeowners were able to restructure their mortgage terms so they could keep their homes under more favorable loan terms.

All of these cases, however, generally carry tax costs. The lender's forgiveness of the existing home's mortgage, in full or in part, is known as canceled debt and that amount is taxable income.

Because so many homeowners were facing cancellation of debt, or COD, tax bills, the Mortgage Debt Relief Act of 2007 was enacted to provide some relief. Under this law, homeowners who were foreclosed, completed a short sale or had their home debt reduced by mortgage restructuring do not have to count the canceled debt as taxable income.

Up to $2 million of forgiven debt, or $1 million for married taxpayers filing separately, qualified for the tax exclusion.

However, this law expired on Dec. 31, 2014. It is part of a larger group of tax breaks known as extenders that are expected to be reconsidered by Congress sometime in 2015, but there is no guarantee that the Mortgage Debt Relief Act will be renewed again.

What's not tax-deductible

While many tax breaks are available to a homeowner, don't get too carried away. There are still a few things for which you have to bear the full cost.

One such expense is insurance. If you pay private mortgage insurance, or PMI, because you weren't able to come up with a large enough down payment, that's a cost you probably won't be able to deduct -- unless you meet the requirements of a special PMI law. Under this law, some homeowners can deduct on Schedule A their PMI payments on loans originated or refinanced between Jan. 1, 2007, and Dec. 31, 2014, and which meet certain loan amount limits.

Note the 2014 expiration date. The PMI-as-interest tax break, like the COD law, expired last year and may or may not be revived by Congress in 2015.

The other big home-related insurance cost, property hazard insurance premiums, still remains nondeductible for all, even though the coverage generally is required as part of the home loan and is included as a portion of your monthly payment.

Other nondeductible residential expenses include homeowners association dues, any additional principal payments you make, depreciation of your home, and general closing costs and local assessments to increase the value of your neighborhood, such as construction of new sidewalks or utility connections.

What about all those repairs that seem to crop up the day after you move in? Surely, they're tax-deductible. Sorry. While they'll make your house much more comfortable, you're on your own here, too.

But hold on to the receipts. Some longtime homeowners may find their property has appreciated beyond the $250,000 ($500,000 for married couples) amount the IRS will let you keep tax-free when you sell. If that happens, the records of property improvements could help you establish a higher basis for your house and reduce your taxable profit.

Veteran contributing editor Kay Bell writes Bankrate's tax stories from her Austin, Texas, home. She also writes two tax blogs, Bankrate's Taxes Blog and Don't Mess With Taxes. She is the author of the book "The Truth About Paying Fewer Taxes," and a co-author of the book "Future Millionaires' Guidebook."

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Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

New down payment option could boost homeownership!

New down payment assistance is putting homeownership within reach of more consumers and boosting the buying power of others, sometimes by hundreds of thousands of dollars.

Federal mortgage guarantor Freddie Mac is piloting a groundbreaking program that lets homebuyers get half of a 20 percent down payment covered by a financial firm in exchange for home equity.

The down payment assistance comes from Unison Home Ownership Investors (formerly First Rex) — a San Francisco-based firm that invests in homes alongside owner-occupant buyers and lets homeowners sell home equity for cash.

How the program works

Participating borrowers can fork over a 10-percent down payment and end up with the same monthly mortgage bill as borrowers who use their own money to cover the full 20 percent for the same loan but don’t use the program.

In exchange for covering half of a down payment, Unison Home Ownership Investors will realize part of the gain or loss of a home’s value — with the payout (or loss) likely usually occurring when the property sells in the future. Borrowers do not pay any interest on a down payment contribution from Unison.

The program marks the first time that a “shared-equity” scheme that involves no interest payments has been approved by a federal mortgage agency, according to Unison and some industry insiders.

That sets mortgages with investor-supported down payments up for widespread use if Freddie Mac expands the experiment.

Mortgages with Unison assistance don’t require private mortgage insurance (PMI) because they use a 20-percent down payment. Freddie Mac holds these loans to the same underwriting standards as mortgages that use a 20-percent down payment covered in full by the borrower (with no assistance from an investor).

Borrowers can buy out Unison Home Ownership Investors’ stake in their property after a few years, or they can let the company hang on to the equity for up to 30 years. At that point, they would have to buy out Unison by refinancing or selling.

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Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

What Demographics Will Fuel Housing Demand in 2017?

Millennials and the baby boomer population will be demographics to watch in the new year, as the housing decisions they make will increase demand for the next 10 years, according to the 2017 National Housing Forecast reportfrom Realtor.com which details the top housing trends and 100 largest metropolitan markets to watch.

A demographic that is known for benefiting greatly from low mortgage rates, the millennial market’s share of the buyer population has decreased to 33 percent due to the increase in interest rates. Baby boomers take up 30 percent of the buyers’ market and are expected to be more successful in closing sales.  

Home price appreciation is set to slow down to 3.9 percent growth year-over-year after an estimated appreciation rate of4.9 percent in 2016. However, 26 markets will see price acceleration of 1 percentage point growth or more. Greensboro-High Point, North Carolina; Akron, Ohio; and Baltimore-Columbia-Towson, Maryland will encounter the largest increases in price appreciation.

The combination of sparse housing inventory and strong demand was the cause of increased home prices in 2016, according to Realtor.com. The lack of home inventory, which is currently down an average of 11 percent in the top 10 metropolitan areas in the United States, is expected to remain constant in 2017. The current median age of inventory is at 68 days, which is a 14 percent increase than the national average.

West coast cities are expected to lead the nation in home prices and sales with increases of 5.8 percent and 4.7 percent, respectively. Six out of the top 10 cities listed in Realtor.com’s 2017 top 100 metro housing markets list are located on the west coast. The top 10 housing markets are: 1) Phoenix-Mesa-Scottsdale, Arizona; 2) Los Angeles-Long-Beach-Anaheim, California; 3) Boston-Cambridge-Newton, Massachusetts-New Hampshire; 4) Sacramento-Roseville-Arden-Arcade, California; 5) Riverside-San Bernardino-Ontario; 6) Jacksonville, Florida; 7) Orlando-Kissimmee-Sanford, Florida; 8) Raleigh, North Carolina; 9) Tucson, Arizona; and 10) Portland-Vancouver-Hillsboro, Oregon-Washington.

Share

Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

Credit Closes In on Pre-Crisis Benchmark, with Midwest Most Improved

Americans’ credit profiles have recovered extensively since the recession, with the average credit score now closing in on a pre-crisis benchmark.

According to Experian’s recently released State of Credit report, the average credit score in the U.S. is 673, six points shy of 679, the average in 2007. The tapering gap represents healthier conditions for housing, which is experiencing pent-up demand as creditworthiness continues to come up short of lender standards.

“We are seeing the positive effects of economic recovery, with the rise in income and low unemployment reflected in how Americans are managing their credit,” said Michele Raneri, vice president of Analytics and New Business Development at Experian in a statement on the report. “All credit indicators suggest consumers are not as ‘credit stressed.’ Credit card balances and average debt are up, while utilization rates remained consistent at 30 percent.”

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Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

Trump Officially Taps Carson for HUD Secretary

As initially reported by DS News, President-elect Donald Trump has been on-record that he favored Dr. Ben Carson as the next HUD Secretary. On Monday, CNN reported that this preference became official with Trump's transition team announcing the appointment.

According to CNN, in the announcement Trump praised Carson, 65, for his intelligence and tenacity, saying, "Ben Carson has a brilliant mind and is passionate about strengthening communities and families within those communities. We have talked at length about my urban renewal agenda and our message of economic revival, very much including our inner cities. Ben shares my optimism about the future of our country and is part of ensuring that this is a Presidency representing all Americans. He is a tough competitor and never gives up."

Carson, a retired neurosurgeon who became a household name last year when he began a campaign to win the Republican nomination for the presidency, has never served in a government position.

"Dr Carson is an intelligent, impassioned, and empathetic individual," said Tim Rood, Chairman of The Collingwood Group. "Sometimes the very best policy makers are those who listen and sometimes, good leaders who are not steeped in the subject matter are better listeners than those who believe they have all the answers. After a challenging eight years, what HUD and the country really needs now is an opportunity for our public officials to address problems from a fresh and open-minded perspective and listen to the industry."

“Hailing from Detroit, Dr. Carson is all too familiar with the housing issues related to inner-city housing,” said Ed Delgado, Five Star Institute President and CEO. “It is our hope that, as HUD Secretary, he puts forth policies and programs intended to rebuild markets hard hit by the Great Recession."

National Association of Realtors President William E. Brown stated, “Realtors know that the incoming Secretary of Housing and Urban Development has a big job ahead. Potential homebuyers face a range of hurdles, from rising prices to mortgage credit that’s burdened by fees and extra costs. We congratulate Dr. Carson on accepting this important challenge and wish him the very best of luck in meeting the task ahead. While we’ve made great strides in recent years, far more can be done to put the dream of homeownership in reach for more Americans. The National Association of Realtors and its 1.2 million members looks forward to working with Dr. Carson to fulfill this important mission.”

Carson, who was raised in the inner city of Detroit, told Neil Cavuto on November 22 that the inner cities are in "terrible shape" and need "real attention."

"You know, there have been so many promises made over the last several decades, and nothing has been done," Carson said. "So it certainly is something that has been a long-term interest of mine. And I'll be thinking and praying about it seriously."

Trump’s initial announcement in November that he was considering Carson to lead HUD came as a surprise to many because Carson reportedly said on November 15 that he does not want to serve in the Trump Administration.

On November 21, however, Carson told Fox News that he would give “very serious consideration” if he were offered a cabinet position in the Trump Administration. He explained his position via Facebook later that same day, saying, “There is no reversal of my position in terms of working with the Trump administration. I have always made it clear that I preferred to work outside of the government as an advisor, but if called upon, I would serve inside of the government. I believe it is important to have voices that are outside of the administration combating media bias and the divisiveness that has infected our country.”

Share

Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

Current Mortgage Rates for SANTA BARBARA COUNTY, CA

I've included below a selection of current rates for a few of our many products. I'd be happy to discuss options with you and your client based on their particular needs.

Non-Conforming

Loan Type

MI Type

Interest Rate

APR

7/1 ARM Non-Conforming

3.375%

3.666%

30-yr fixed Non-Conforming

4.000%

4.026%

Information displayed is accurate as of 12/2/2016 4:45:58 PM (CT) and is subject to change without notice.

For information on the many other loan options we have available, please contact me. I look forward to hearing from you.

Justin Leach

Private Mortgage Banker
NMLSR ID 685345

Wells Fargo Home Mortgage | 1036 Anacapa Street | Santa Barbara, CA 93101
MAC E2335-013
Tel 805-897-3871 | Cell 805-315-6849 | Fax 866-606-0473

Justin.L.Leach@WellsFargo.com

Share

Guy Arnone

Guy Arnone is a California Licensed Real Estate Broker who belongs to a select group of individuals approved by the California Real Estate Commissioner to perform a special dual service in the real estate industry.


Guy started the Fred Sands of Valencia with five agents. By the time he sold/merged the office in 2009 to Coldwell Banker, Vintage Sotheby’s International Realty office (formerly Fred Sands) had over 150 agents in his organization. His company included mortgage,escrow, commercial and property management divisions and had grown to  be ranked the #3 office in their marketplace.


Licensed by the California Bureau of Real Estate since 1986, Guy has been serving Southern California real estate needs for nearly over 30 years. From representing principals in all facets of real estate brokerage, financing, property management, development, and real estate investing to developing, growing and managing real estate companies.


Guy continues to rank among the top 10% Nationwide of all real estate professionals of transactions of residential, luxury, commercial and multi-residential real estate.


Guy has and continues to serve on many advisory boards including, Women with Vision, Title IX, The Northridge Hospital Foundation, We Are the World Real Estate, Children’s Hunger Fund and The Springbrook Foundation. He enjoys Sports, Art, Travel, History, Reading, Music, and spending time with friends and family. Guy has been married for over 26 years and has three children.

Case-Shiller: Home Prices Fully Recovered from Recession

Home prices in the U.S. have fully recovered from the recession, remaining on a pick-up with a 5.5 percent annual gain in September, according to data from the S&P CoreLogic Case-Shiller Indices, and advancing from the 5.1 percent seen in August.

The 10-City Composite in the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 4.3 percent annual increase in September, up from 4.2 percent the previous month, and the 20-City Composite reported a 5.1 percent annual increase, unchanged from the previous month. Denver, Portland and Seattle once again reported the highest year-over-year gains among the 20 cities in September, with Seattle at 11.0 percent, Portland at 10.9 percent and Denver at 8.7 percent.

Month-over-month, the Index reported a 0.4 percent increase, with both the 10-City and 20-City Composites reporting a 0.1 percent increase.