Mortgage Rates

Home buyers are not waiting to see what happens with interest rates.

In what almost defies odds, despite the Federal Reserve’s decision to raise their base interest rate in December, home buyers are finding that their Santa Clarita Real Estatepurchasing power is at its peak with nearly historic low interest rates.

According to a recent study, home mortgage applications jumped by nearly 9 percent in January of 2016. Borrowers are clearly seeing the advantages of acting now, rather than sitting on the fence.

And why not? Home prices on average rose 10 and a half percent in 2015. This average includes both single family homes and condominiums sold in the Santa Clarita Valley. The median price of a single family home rose 8.1 percent, while condos rose on average 12.9 percent.

I think I’m ready to buy a house. What do I do first?

The best thing to do, of course, is to contact Montemayor & Associates, and we’ll get the ball rolling to find the right lender who can let you know what your qualifying home mortgage rate and amount may be. Yes, you should do this FIRST before you begin looking at homes.  Continue reading

Despite the Federal Reserve raising their interest rates, home loan prices are at an almost record low.

2016 is off to a pretty good start, real estate-wise. Single family home prices rose $38,000 on average last year, and we’re already off to a brisk start in Montemayor and AssociatesJanuary.

Interestingly enough, there was potential “doom and gloom” on the horizon as spelled out by some analysts late last year in light of the Federal Reserve’s decision to finally raise the rate they charge lenders to borrow money.

You’d think then, that mortgage rates would instantly rise as a result, right? Wrong!

In fact, 2016 has begun with home loan interest rates once again hovering near record lows. Having dropped below 4 percent, home owners, buyers, and sellers are taking advantage of what may be an “extended reprieve” from rising rates. Continue reading

Mortgage rates will hold steady for the time being.

Slow economic growth over the summer has motivated the Federal Reserve to remain cautious, holding off on

Brandon Montemayor

Brandon Montemayor

proposed rate hikes for now.

National Gross Domestic Product (GDP) grew slower than expected over the summer. As such, the Fed has made plans to raise the rate of money borrowed by lending institutions in an effort to stave off runaway inflation, based on higher economic projections that have yet to be met.

Good News For Home Buyers

Interest rates have held at under 4 percent for the bulk of past year. As of the date of this article, mortgage interest rates are as follows:

  • 30 year fixed-rate mortgage: 3.87%
  • 15 year fixed-rate mortgage: 3.15%
  • FHA 30 year fixed: 3.60%
  • Jumbo 30 year fixed: 3.67%
  • 5/1 fixed adjustable rate mortgage: 2.93%

Continue reading

Housing prices remain steady, although we’re seeing some signs of the end of the “summer rush.”

August showed a steady pace in the Santa Clarita real estate market, with new information released by the Southland Regional Association of RealtorsMontemayor and Associates Remax of Valencia

While there were no “wild rides” real estate-wise, we did see a market that held its own through what most consider the “dog days of summer.”

Median home prices and sales remained somewhat the same as July, with median sale prices holding at $415,000, which includes both single family residences and condominiums. We saw a slight drop in the number of home listings at 441 for August, compared to 500 in July, but the number of escrows opened and closed barely changed month over month.

Santa Clarita also saw only a slight drop in the median list price in August at $447,000 compared to $459,000. This accounts for typical pricing adjustments as the summer rush comes to an eventual close. Continue reading

Buyers are in a great position to finally own their own property in the Santa Clarita Valley.

1. Interest rates are still incredibly low. Overlooking Seco Canyon in Saugus. Photo copyright George D Cummings

Despite predictions to the contrary, interest rates have not “shot up” as some analysts were saying late last year. In fact, they’ve remained fairly steady, still hovering in the low 4 percent range; even lower for certain loan programs. This means that you have more purchasing power in getting the home you want. Contact us to find out more. 

2. More homes are on the market.

While buyers were able to take advantage of low interest rates last year, they found it very difficult to find a home for sale because of such limited inventory. For most of last year, there were only on average around 300 or so available homes in the entire Santa Clarita Valley. This caused some fast and furious bidding, and many buyers lost out. This year we’re seeing what may be perceived as a more “balanced” inventory, with a nearly 3 month supply on hand. A normal market will have 3 to 6 months’ worth of available homes for sale. Continue reading

Is this a sign of a shift in the Santa Clarita real estate market?

The Southland Regional Association of Realtors released their statistics for the month of May, revealing that single family home prices made no gains over April. Santa Clarita Real Estate UpdateCurrently single family homes are holding at a median price of $485,000 in the Santa Clarita Valley.

Condominium prices in the SCV did bounce upward nearly 6 percent last month, settling in at $281,000. Condos have had a bumpy ride in the past year or so, with a few ups and downs along the way. They had topped out briefly at $295,000 in November 2013 before taking a dip at the beginning of this year, but overall their median equity has increased by over 12 percent since January.

Condos may have gained more appeal in light of the fact that single family homes are becoming out of reach for many entry-level home buyers.  Continue reading

New report shows that what potential home buyers don’t know about mortgages unwittingly keep them on the sidelines.

So you’re sitting on the fence, still renting because you think you can’t qualify for a loan. Your credit score isn’t high enough, and you have a few bills to pay every Buying a home is easier than you think.month. Also, who has enough cash on hand to make a 20 percent down payment?

A recent survey from OmniTel showed that 55 percent of potential home buyers do not believe they are capable of qualifying for a home loan. Out of that number, 74 percent have never even attempted to find out if they can qualify for a mortgage, or what it takes to get one. So let’s tackle some of these sidelining factors, and see if we can’t enlighten the non-believers.

My Credit Score Is Too Low To Qualify For a Loan

A FICO (Which stands for Fair, Isaac and Company) score tops out at 850, and tt’s true that to qualify for certain lines of credit, having a score of 720 or higher. However, it turns out that 33 percent of home buyers nationwide had FICO scores at or below 700, and FHA borrowers on average had a score of 684. So yes, there may be a home loan program out there for you if your credit is less than perfect. Continue reading

Loan approval these days is a must BEFORE buyers begin their home search, Biggest loan mistakes by home buyersbut don’t jump in until you read this article.

It’s Springtime! Historically, this is when the real estate market begins to jump into action. As Summer nears, many buyers want to have their home choice secure so that it’s easier to move the family in between school sessions. Tax season is also a big motivator for some: Either because they received a sizable refund that will help with home purchase and moving expenses, or because the lack of a refund has motivated you to consider the tax benefits of home ownership.

That being said, it’s important to understand the basic tenet of today’s real estate market: Without loan prequalification (or better yet, preapproval), you’ll be hard pressed to present an offer for your dream home to the seller, or even get in the front door.  Continue reading

The love triangle between stocks, bonds, and interest rates can make for strange bedfellows.

Mortgage rates dropped this week on good news from both the stock and bond market. Bulls and Bears represent the volatility of the stock market

As industry professionals, we tend to throw these phrases around without considering whether anyone really understands what we’re talking about. In all honesty, what does this have to do with whether you can afford a home or not?

Well, we’ll take this opportunity to explain why news from the financial marketplace can affect your home purchasing power. First, let’s get a few definitions out of the way: Continue reading

Thinking Outside The Box When It Comes To Financing Your Home Can Save You Money

Defying predictions by financial experts that they’d rise to well over five percent, home mortgage rates are still amazingly low. As of this article date, conventional fixed Mortgage optionsrate mortgages are at just under 4 and a half percent for qualified buyers. A conventional mortgage is typically one that lasts 30 years at a set interest rate.

This is great news for those looking to purchase a home. But did you know that rates are actually even cheaper if you consider other options? What follows are alternatives to conventional mortgages, along with their current interest rate (As of March 12, 2014).

15 Year Fixed Rate Mortgages/3.48%

This is a great alternative for home buyers looking to save money on their interest rate, while paying off their mortgage in half the time it takes for a conventional home loan. A 15 year fixed rate mortgage allows the borrower to pay down principle more quickly as well, which helps to increase the equity in their property. If there is a downside, it’s that the monthly loan payment will be higher since you’ll be paying it off twice as fast. Continue reading

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Client Testimonials
I had specific needs for my new home. Brandon was very patient with my unique situation and flexible when it kept changing. He showed me so many houses, but with little inventory, none of them were quite perfect or they had too much HOA or Mello Roos. Finally when we found The One, no HOA, no Mello Roos, it had been on the market for 4 days and I made an offer that morning. I was sure the sellers would give it to someone else but Brandon worked hard to make sure they accepted my offer and by that night, the house was mine. Had it not been for Brandon I would still be searching for a house because so far, there is still nothing better than mine.
Lisa G. , Saugus
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