Why Should Buyers Care that Freddie Mac Forecasts Mortgage Rates Will Go Up

Mortgage Loan Rates On the Move Up

Mortgage rates are on the move up

Why should home buyers care about mortgage rates going up?

Freddie Mac (Federal Home Loan Mortgage Corporation) forecasted in July 2015 that mortgage loan interest rates would slowly rise over the next year, topping out at 5%.

Monthly house payments go up when mortgage rates go up.

Freddie Mac's July 2015 interest rate outlook, 8-16-2015

Look at detail on the numbers.

Moving from 4.125% (where mortgage rates are today) to 4.3%, their end of 2015 prediction, may seem like an insignificant change in the monthly payment, but it might be just the beginning.

For a detached median priced home at Orange County CA, it’s only a $672 increase each year; and for the median priced condominium, it’s only a $396 increase.

When interest and mortgage rates to up, before you know it, everybody will be talking about 5% interest rates as the new normal.

At 5%, the detached median sales price of an Orange County home now has a monthly payment that is $284 more than today’s payment.  That is a difference of $3,408 each and every year.

Locking in a mortgage rate today is like getting a free vacation every year for 30 years.

At 5%, the median sales price condominium has a monthly payment that is $170 more than today’s payment. That’s an extra $2,040, still a pretty considerable chunk of change.

By Harrison K. Long, Real estate broker, professional real estate representative, and Realtor, Orange County CA – CALBRE 01410855.  Source of some information for this article is ReportsOnHousing.com.

“Why Should Buyers Care that Freddie Mac Forecasts Mortgage Rates Will Go Up”

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Mortgage Rates Stay Down with Huge News For Home Buyers at Orange County CA

Purchase money lending

Fantastic news for homebuyers is that home loan mortgage rates at Orange County CA went down big-time during 2014 and have stayed down.

4.5% was the average rate on a 30-year fixed loan offered by lenders one year ago today –  see article from that time –Mortgage rate watch report for December 28, 2013.

Average payment on a $417k conforming loan one year ago was $2,113 per month.

3.75% is the average rate offered by lenders on a 30-year fixed loan at Orange County today on December 29, 2014 (for those who qualify) –  see article –Mortgage rate watch report for December 28, 2014.

Average payment on that same $417k loan is now $1,930 per month (for those who qualify).

So a monthly payment on that $417k loan now will save a homebuyer $183 per month as compared with same time last year.

What this means is that prospective homebuyers should get organized, qualified or pre-approved with a lender, and move forward with decisions to buy now!

Coldwell Banker residential brokerage

 

 

By Harrison K. Long, Realtor, real estate broker, and professional real estate representative at Orange County CA.    

Professional REALTOR® agent representation and help for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA.  Contact us at 949-854-7747 with your questions about home prices and values at Orange County CA cities and areas with Home Selling and Real Estate market updates.

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Best Time Now for Buyers to Take Advantage of Unbelievably Low Mortgage Rates

Purchase money lending

With interest rates dropping to their lowest levels since June 2013, now is a great time to buy a home at Orange County CA.

Current rate drop to about 4.03% for 30-year fixed rate mortgage (for those who qualify) is a big savings for buyers on a monthly basis.

Home loan rates are fantasticRates are a lot lower today than they were at the beginning of this year 2014 – and are now at their lowest level since June 2013.

The FED has been printing money for years by funding the secondary market and purchasing mortgage back securities. The FED has held the Federal Fund Rate at almost ZERO for over five years. Lenders are essentially charged next to nothing to borrow money and are able to pass along this savings in the form of unbelievably low interest rates.

But that won’t last forever. The FED is ready to eliminate the economic stimulus. The FED is looking to keep a lid on inflation and increase the Federal Fund Rate in about six months. That’s where we will see a change in interest rates. As the Federal Fund Rate increases, banks’ profitability is squeezed, and lenders will raise their rates to home buyers and those who refinance.

In about six months – or about April 2015 – pressure is expected to rise on interest rates.

Don’t wait! Lock in your great mortgage loan rate now. There is no better time than now to buy your Orange County home and lock in the great rate.

Orange County CA how has 7,174 homes listed for sale, which is 841 more than same time last year. The expected average market time for all of Orange County CA is at 3.24 months now – or 97 days – now a balanced market that does not favor buyers or sellers.

Sellers at Orange County CA need to make sure they are pricing their homes correctly from the start, so they can get real buyer attention during this balanced market.

By Harrison K. Long – Source of some information is CRMLS and ReportsOnHousing and is for listings and sales by all agents and brokers.

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Contact us with questions about Orange County CA homes, home buying and selling opportunities at Orange County CA. ~ Professional REALTOR® agent representation and help for home and property owners, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of homes and properties at Orange County CA.

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East Costa Mesa CA Home Selling Market Still Solid

East Costa MesaEast Costa Mesa is a most-popular area for home buyers at Orange County – and is located just inland from Newport Beach and about two miles from Newport Harbor.

406 16th place, sold, 2014East Costa Mesa homeowners and residents cherish their neighborhoods, with flat and wide streets, friendly neighbors, single level homes, good access to public parks and recreational areas, and located close to good public schools.

 

  • 16 East Costa Mesa homes were sold so far from August 1 to August 28, 2014 – with average sold price of $825,593 – and average time on market of 76 days for those sold homes.
  • 17 East Costa Mesa homes were sold during same time last year 2013 from August 1 to August 28, 2013 – with average sold price of $798,115 – and average time on market of 53 days for those sold homes.
  • So East Costa Mesa home selling is a little slower this year in August, and selling numbers are otherwise about the same as last year 2013.

East costa mesa home valuesInvestors and buyers have also liked East Costa Mesa real estate.

149 East Costa Mesa homes have sold so far this year – from January 1 to August 28, 2014.

Average sold price of $870,366, and average time on market of 65 days for those sold homes.

  • East Costa Mesa has now has 68 homes listed for sale – with average list price of $922,726.
  • 18.6 East Costa Mesa homes are being sold on average each month this year.
  • So it will take 3.65 months to theoretically sell all homes now on the market at current pace of selling.
  • This market still favors sellers, but it has been moderating in favor of buyers who now have more choices.

See East Costa Mesa homes for sale here.

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By Harrison K. Long – Source of some information is CRMLS and is for listings and sales by all agents and brokers.

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Contact us with questions about East Costa Mesa homes and about listing and sale of your home at Orange County CA. ~ Professional REALTOR® agent representation and help for home and property owners, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at East Costa Mesa and Orange County CA.

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U.S. Estate Tax Is On Your Right to Transfer Property at Your Death

Some people we talk with are confused about what the U.S. Estate Tax is and on what basis that would be owed and paid.

According to the Internal Revenue Service the U.S. Estate Tax is a tax on your right to transfer property at your death.

This consists of an accounting of everything you own or have certain interests in at the date of death (Refer to Form 706).

The fair market value of these items is used, not necessarily what you paid for them or what their values were when you acquired them. The total of all of these items is your “Gross Estate.” The includible property may consist of cash and securities, real estate, insurance, trusts, annuities, business interests and other assets.

Once you have accounted for the Gross Estate, certain deductions (and in special circumstances, reductions to value) are allowed in arriving at your “Taxable Estate.” These deductions may include mortgages and other debts, estate administration expenses, property that passes to surviving spouses and qualified charities. The value of some operating business interests or farms may be reduced for estates that qualify.

After the net amount is computed, the value of lifetime taxable gifts (beginning with gifts made in 1977) is added to this number and the tax is computed. The tax is then reduced by the available unified credit.

Most relatively simple estates (cash, publicly traded securities, small amounts of other easily valued assets, and no special deductions or elections, or jointly held property) do not require the filing of an estate tax return. A filing is required for estates with combined gross assets and prior taxable gifts exceeding $1,500,000 in 2004 – 2005; $2,000,000 in 2006 – 2008; $3,500,000 for decedents dying in 2009; and $5,000,000 or more for decedent’s dying in 2010 and 2011 (note: there are special rules for decedents dying in 2010); $5,120,000 in 2012, $5,250,000 in 2013 and $5,340,000 in 2014.

Beginning January 1, 2011, estates of decedents survived by a spouse may elect to pass any of the decedent’s unused exemption to the surviving spouse. This election is made on a timely filed estate tax return for the decedent with a surviving spouse. Note that simplified valuation provisions apply for those estates without a filing requirement absent the portability election.

For additional information, refer to the IRS and its Instructions for Form 706.

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By Harrison K. Long. Source of information is the Internal Revenue Service. See http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Estate-Tax. This is for information only and is not the providing of professional estate planning or tax services or legal services. You should always consult with an experienced attorney or a certified public accountant about estate taxes for yourself and your family.

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Orange County home selling price appreciation no longer in white hot territory

Good news for home buyers is that Orange County price appreciation is no longer in white hot territory.

Home sellers now should seriously consider the comps and what buyers are paying for homes.

Our Orange County real estate market has changed during 2014, and buyers are looking to pay fair market value.

More Orange County homes listed for sale are sitting on the market without buyers.

Average market time for OC home selling has gone up, and active inventory of listings has been up all year. 8,057 Orange County homes are now listed for sale, which is 2,535 more than were on the market same time last year (a 45 percent increase in listings this year).

Orange County price and values skyrocketed from 2012 to the end of 2013. Sellers priced their homes above recent sale prices and received multiple offers – sometimes selling for more than list prices.

That’s stopped! Buyers at the OC now want to pay at value relative to recent sales – and expect to pay “fair market value”.

Orange County home selling usually cools after the kids return to school, and we expect this to moderate further from Thanksgiving through start of the New Year 2015.

Buyers have better options this years and are looking for nice upgraded homes and real value. Sellers are no longer in complete control and need to price their homes correctly while considering recent comp sales, location, upgrades, and condition of the home.

Sellers should price their homes realistically and correctly according to value from the start of marketing time and then expect positive results.

We here to help you evaluate the market in your area and price your home to sell.

Coldwell Banker residential brokerage

By Harrison K. Long. Source of some information is ReportsOnHousing.com and is for homes sold by all brokers and agents.

Professional REALTOR® agent representation and help for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA.

Contact us at 949-854-7747 with your questions about home prices and values at Irvine, Newport Beach, Costa Mesa, and other Orange County CA cities and areas.

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How Irvine CA Home Selling Shows Trend at 2014 Midyear Update

OLYMPUS DIGITAL CAMERAIrvine CA home selling 2014 midyear update shows shift toward balance and not favoring sellers as much as the market did last year.

Irvine home selling prices are determined with focus on recent comparable sales and fair market value.Irvine CA Midyear real estate update-b-

783 Irvine homes are listed for sale as of today (July 19, 2014) – an astounding number jump up of 108 percent since start of this year when 375 homes were listed.

Home selling at Irvine CA remains strong with prices up – while buyers now have more choices. Homes for sale are staying on the market about the same on average these days as compared with the first of the year (when average market time was 3.8 months).

5 Shade Tree, sold, 6-30-2014

Midyear Irvine average home sold prices at the following communities during June 2014 can serve as a guide for fair market value:

■Airport Area Irvine – 17 homes sold – average sold price of $581,815

■El Camino Real Irvine – 8 homes sold – average sold price of $615,825
■Northpark Irvine – 8 homes sold – average sold price of $942,050
■Northwood Irvine – 45 homes sold – average sold price of $754,731
■Oak Creek Irvine – 5 homes sold – average sold price of $641,500
■Portola Springs Irvine – 7 homes sold – average sold price of $755,826
■Quail Hill Irvine – 8 homes sold – average sold price of $780,846
■Shady Canyon Irvine – 2 homes sold – average sold price of $5,065,000
■Stonegate Irvine – 13 homes sold – average sold price of $704,219
■Turtle Ridge Irvine – 11 homes sold – average sold price of $1,490,727
■Turtle Rock Irvine – 10 homes sold – average sold price of $1,370,830
■University Park Irvine – 4 homes sold – average sold price of $917,250
■Westpark Irvine – 17 homes sold – average sold price of $631,135
■Woodbridge Irvine – 25 homes sold – average sold price of $637,252
■Woodbury Irvine – 17 homes sold – average sold price of $787,109
■Irvine CA all village areas – 237 homes sold during June 2014 – with average sold price of $808,452

OLYMPUS DIGITAL CAMERAIrvine CA real estate market now has a wider spread between average list price ($1,111,250) and average sold price ($808,452 during June 2014).

Irvine home selling is more balanced these days with sellers facing competition from other sellers.

Successful sellers will adjust to this market and consider carefully what buyers are looking for in the home, the neighborhood and fair market value.

By Harrison K. Long. Source of information is CRMLS multiple listing service and ReportsOnHousing, and OCRegister.com and is for homes sold by all agents and brokers.

Professional REALTOR® agent representation and help for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA. Connect with us with your questions about home prices and values at Irvine, Newport Beach, Costa Mesa, and other Orange County CA cities and areas.

Find out here what your Irvine CA home is worth

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Vibrant Executive Style Residential Living at 3163 Watermarke Place – Irvine CA homes

Premium lot location on the peaceful Meditation Garden! 3163 WatBeautiful, upgraded Watermarke home with premium lot location on the peaceful Meditation Garden!

3163 Watermarke PlaceLiving room opens to dining area - high ceilings & wood floorsEnjoy this excellent, well-thought-out floor plan with open-concept kitchen, dining and living area.

 

 

 

Relax in spacious living room opening to patio and GardenAbundant natural light, volume ceilings and hardwood floors throughout.

 

 

 

 

Open-concept kitchen, dining and living area - high ceilings & cIdeal ground level location makes coming and going easy, with no steps to very close private parking space in gated garage.

 

 

 

Gorgeous kitchen with granite counters & stainless appliances inThis Carlton Arms upgraded home features a gorgeous kitchen with granite counters, white cabinets to ceiling, stainless steel appliances including 5-burner gas range, built-in desk & cabinets and crown molding.

 

 

Master bedroom view of tranquil Garden, trees & fountainSpacious master bedroom has views of the tranquil Garden, trees & fountain, plus walk-in closet, ceiling fan and new carpet.

 

 

 

Granite counters, extra cabinets and shower/tubAdjacent bathroom with granite counters.

Inside laundry room.

Private patio next to Garden.

 

 

Resort-style swimming pool, fitness center and Clubhouse at WateExperience the Watermarke resort-style life with amenities that include Clubhouse …

 

 

 

 

Schedule a party at the Clubhouse with the ConciergeConcierge service,

 

 

 

 

Workout at the fitness center next to the swimming poolsparkling pools and spas, fitness center, tennis and basketball courts,

 

 

 

 

Love-love. Tennis anyone!movie theater, game room, and business center.

 

 

 

 

Welcome to Watermarke, centrally located in Irvine and near NewpWatermarke is centrally located near the Irvine business center, Irvine Spectrum, Newport Beach, Orange County airport, UC Irvine, South Coast Plaza and easy freeway access.

 

 

3163 Watermarke Place

Home offered at $384,000 – CRMLS #OC14118459

Property presented and listed by Harrison K. Long and Christi Long – Realtors and professional real estate representatives – CAL BRE 01410855 – Coldwell Banker Residential Brokerage, Irvine and Orange County CA – 949-701-2515 (phone) – HKLong@cox.net

Coldwell Banker residential brokerage

By Harrison K. Long. We provide Professional REALTOR® agent representation and help for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA. Contact us with your questions about home prices and values at Irvine, Newport Beach, Costa Mesa, and other Orange County CA cities and areas.

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Turtle Rock Irvine CA Home Selling Prices are at an All-Time High

Turtle Rock Irvine CA Home Selling Prices are at an All-Time High.

Turtle Rock continues to be one of the most sought-after community locations for residential living and home buying in Orange County.

Turtle Rock home buyers were hot and busy last year during 2013, and home prices jumped with so few homes available for buyers.

Although home selling pace at Turtle Rock has moderated slightly this year, home selling prices are up more than 20 percent as compared with same time last year.

Turtle Rock has sold 39 homes so far this year through May 29, 2014 – with average sold price of $1,270,046.

Turtle Rock sold 44 homes last year during the same time – with average sold price of $1,054,830.

Home selling prices at Turtle Rock are still jumping even more – with 11 homes sold during the past 30 days (from April 28 to May 29, 2014) – and average home sold price of $1,441,527.

Some of the recent sales at Turtle Rock were homes with views and significant remodels, so prices were especially high.

Even though Turtle Rock Irvine home selling average prices are at an all-time high, this price average, we expect this to moderate somewhat for the remainder of 2014.

Turtle Rock Irvine now has 33 homes listed for sale (including detached single family homes and condominiums) – with average list price of $1,296,557.

Our Turtle Rock Irvine home selling prices and market update shows that we are still a sellers’ market with high home selling prices. However, buyers have more options and listings to consider than last year.

Coldwell Banker residential brokerage

By Harrison K. Long. This is information from CRMLS multiple listing service and is for homes for sale and sold by all agents and brokers.

We provide Professional REALTOR® agent representation and help for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA. Contact us with your questions about home prices and values at Irvine, Newport Beach, Costa Mesa, and other Orange County CA cities and areas.

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Property Buyers in CA Should Be Advised About Implications of an Earthquake Zone Report

Property Buyers in CA Should Be Advised About Implications of an Earthquake Zone Report.

A California court of appeal has ruled that the real estate broker for buyers failed in their obligation to investigate, understand and communicate to buyers the implications of an earthquake zone report.   (Saffie v. Schmeling, filed March 7, 2014, Fourth District, Div. Two, 2014 S.O.S. E055716).

The court found that the buyer’s broker’s advice to client to “check [the report] out” is insufficient to avoid liability.

This case involved the sale of a vacant property in an earthquake zone.  The seller’s broker stated in the MLS “This parcel is in an earthquake study zone but has had a Fault Hazard Investigation completed and has been declared buildable by the investigating licensed geologist. Report available for serious buyers.”  All of which was true.  The problem, however, was that the report was from 1982 and in the interim were the Loma Prieta and Northridge earthquakes; much had changed in the building standards from then to the sale of the property in 2006.

After closing, the buyer found that he could not build. He sued his broker, the seller and the seller’s broker, alleging that omitting the date of the report was a misrepresentation. The trial court found the buyer’s broker liable for breaching the fiduciary duty to the buyer. The seller and the seller’s broker where held not liable.

Buyer appealed only as to the seller’s broker.  Following prior case law, the court found that, while a real estate broker owes their own client a fiduciary duty, they owe third parties who are not their clients only those duties imposed by regulatory statutes.  These duties include honesty, fairness and full disclosure as well as the Civil Code section 1088 responsibility for the truthfulness of statements in the MLS. The court found that the statement was in fact true. There was a report. The geologist did find the parcel buildable.  And the fact that the MLS did not state that the report was from 1982 was cured by the report’s availability, especially so when the report was dated May 20, 1982 on its face.  The court held that the seller’s broker had met the requirements of honesty, fairness, and full disclosure.

The buyer’s broker, however, did not fare so well. The buyer’s broker merely gave the buyer a copy of the report, telling the buyer to “check it out.”  The court states that the buyer’s alleged injury arises from the failure to investigate and understand the implication of the information that the report dated to 1982, a failure that the trial court found was the buyer’s broker’s responsibility, and not from the failure of the seller’s broker to provide information.  Certainly something beyond “check it out” was required of the buyer’s broker. (Saffie v. Schmeling, filed March 7, 2014, Fourth District, Div. Two, 2014 S.O.S. E055716)

 

Coldwell Banker residential brokerage

By Harrison K. Long.  Source of this information is the California Association of Realtors and is for information only – and is not the providing of legal or professional real estate services.  If you are a buyer of a home or residential property in California and have questions or do not understand an earthquake zone report for the property, you should consult with an experienced real estate attorney. 

Property Buyers in CA Should Be Advised About Implications of an Earthquake Zone Report.

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