Mortgage Blog

RE Market updates

July 23rd, 2013 3:49 PM by Eric Fang

First, the RE Market is slowing down.
The reason was that the interest rate
is up and also the price was too high.
But for some areas, even though the price
was up 20% to 40% from the lows, the house
price is still below the building cost.

Work on one purchase loan for Sacramento area.
It makes sense for the borrower to purchase
the property. It is over 2300 sqft. But with
the current 30 yr fixed interest rate of 4.125%,
the PITI is only $1939.33, and his current rent
with 2000 sqft house is $1900. Then why not own
a house with very similar payments?

I plan to either quit insurance or spend less
time on insurance and focus more on the loans.
And I made good progress, the volume is picking
up a little bit now. And we also applied a
good lender so that we can take advantage
of the good ARM rate. Believe it or not,
lots of borrowers will like ARM rates
in the next 5 years.

Will work on a Mortgage Rate Trend Newsletter
this week.

Posted in:General
Posted by Eric Fang on July 23rd, 2013 3:49 PM



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