Better Weather And Lower Interest Rates – What a difference a week makes. This time last week I was watching a fast moving wildfire burn into my neighborhood.
As many of you know, North County was under siege by 5 separate wildfires burning from Carlsbad to 4 S Ranch. Here where I live in San Elijo Hills, we were dealing with the “Coco’s” Fire. Luckily no homes were lost in my neighborhood,
but the same could not be said for many homeowners in Elfin Forest – they lost over three dozen homes. Due to the extraordinary efforts of the firefighters that were battling these fires, the losses were far less than what they could have been.
Thank you to all of the Firefighters !!
This week we have seen two topics in the media as it relates to San Diego Housing. On Monday we saw a report that indicated roughly 18% of homes nationwide are still underwater. That means roughly 9.7 million homes are worth less than what is owed. Yesterday we saw a report that we trailed San Francisco as the second costliest City as it relates to qualifying income – as reported the magic number is $89,500.00, in the Bay Area it’s a whopping $132,000.00 – ouch!
How does this affect San Diego homeowners – simple.
With Housing Data still showing signs of distress, interest rates as well as re-sale figures will likely stay lower than forecast. The benchmark 10 Year Bond today is trading at 2.52%, this is almost .50% lower than forecast. That means that 30 Year Conventional Mortgages are still in the mid three percent range. For San Diego Homeowners this is great news. Living in the second costliest City as it relates to the income that is required to qualify, having interest rates below four percent is HUGE. This means that on a $500,000.00 mortgage, an increase by .50% (based on 4.0%) equals a payment increase of $160.00 a month. That could be the make or break between qualifying or not.