30 year mortgage rate hits LOWEST on record; 4.58% - HOLY COW!

Freddie Mac reported that average mortgage rates fell in the week through July 1st.  The 30 year fixed hit 4.58%; which is the lowest rate on record.  More JUMBO loans are becoming available and there are a lot of cities to buy a home under the California conforming loan limit of $729,750.  Which means there are lots of options for buyers in San Francisco and the SF Bay Area.

This week, my clients closed on their first home; a 3 bedroom, 2 bath condo.  They are paying a 4.75% interest rate on their new home loan.  Next week, Buyer clients of mine will be closing on a single family home that was listed for $459,000 (with a full in-law) in South San Francisco.  They too locked in at under 5.0%.  A 30 year fixed.

There are currently over 100 - 2  bedroom(minimum) single family homes under $730K from the north side of the City (i.e. The Richmond) all the way across to Sunnyside.  From the Inner Mission across Portola, Excelsior, Outer Mission to Bayview there are over 164.  What's that mean and what's are your options?

I just spoke to one of my favorite lenders, Cesar Aravena at Wells Fargo Bank.  He outlined a situation where a "qualified" buyer can put 15% down and owner occupy one of those homes for just about $3800.00/month (mortgage expenses), at an interest rate under 5.0%.  If you've got a bigger down payment, your interest rate and monthly expenses may be lower.  Believe me; it’s not as simple as what you read in the paper, the internet or see on TV.  A buyer has to qualify for the loan.  Feel free to contact Cesar at WFB he can quote you the APR and walk you through the complete loan and financing details.  Give me a call, I’ll find you, your home… call me at (415)341-8881.

Generally every weekend, I do an open house.  What I see in this market is that buyers are being way too picky in the hopes to find the "perfect" house.  Some may miss out on this opportunity to take advantage of this market and these low rates.  At least 75% of all homes in San Francisco were built before 1950 giving a buyer lots of opportunity to personalize a home and put their imprint on it.  Many have already been remodeled but often times an opportunity to upgrade the bathroom or kitchen within a year or so instills great pride of ownership.

The buyer's of the condo said to me, "Herb, our mortgage is less than many of our friend's pay in rent."

If you’re ready to make that move or inquire about what are your options, give me a call at (415)341-8881 and lets plan your moving day!