Mortgage Bankers Association Releases Statement
When buying San Diego North County homes, expect fixed mortgage rates to go up over the next few years. So, now is the time to buy that Carlsbad home for sale, Oceanside home, Vista CA home, San Marcos CA home, Escondido real estate, or Encinitas home. I work with HomeServices Lending and would be glad to put you intouch with a great mortgage broker. Find out what size of San Diego North County home you can afford now.
Dont’t Miss the Boat
Now is the time to get into action, don’t miss the boat. Now is the time to get off the fence and to buy that San Diego North County home. According to the Mortgage Bankers Association statement released on October 26, 2010, fixed mortgage rates are expected to average about 4.4 percent in the fourth quarter of 2010, increase to 5.1 percent by the end of 2011, and head towards 5.7 percent in 2012. A 1% increase in mortgage rates will make a significant change in the average monthly San Diego house payment.
Rate Increases and Monthy Mortgage Payments
We will look at the effects of a rate increase on your month payment assuming you purchased a $500,000 home, put down 20%, and took out a home mortgage of $400,000.
- Using the 4.4% rate for a $400,000 mortgage your North County home mortgage payment would be $2003.04. These examples just include principal and interest, they do not include taxes and insurance.
- At 5.1% for the same $400,000 mortgage, your payment for principal and interest would be $2170.80 for your 30 year loan.
- At 5.7 for the same mortgage amount of $400,000, your payment will be $2321.60.
Many San Diego North County buyers that can qualify for a loan at 4.4% can no longer afford the same North County house at a mortgage of 5.7%. They would have to buy something much cheaper. Get actual numbers on what you can afford. Contact Gary Harmon and let him introduce you to a great mortgage broker at Home Services Lending. Start looking for your San Diego North County dream home today.
Other Key Points
• Real GDP growth will be 2.2 percent in 2010, although most of that was seen in the first quarter and growth is estimated to have slowed to around 1.5 percent in the third quarter and 1.9 percent in the fourth quarter. Growth is expected to be about 2.1 percent in 2011 and 3.0 percent in 2012.
• The unemployment rate will increase from the current level of 9.6 percent to 9.9 percent by the first quarter of 2011, end 2011 at 9.5 percent, then fall to 8.7 percent by the end of 2012. Mortgage delinquency and foreclosure rates should track this downward trend in the unemployment rate.
• Fixed mortgage rates are expected to average about 4.4 percent in the fourth quarter of 2010, increase to 5.1 percent by the end of 2011, and head towards 5.7 percent in 2012.
• Total existing home sales for 2010 will be around 8 percent lower than in 2009, despite a boost to sales in the first half from the homebuyer tax credit program. Existing home sales are projected to increase modestly in 2011, increasing by a little less than 2 percent, before increasing by about 16 percent in 2012.
• New home sales for 2010 will be down by about 13 percent relative to 2009. We estimate that new home sales bottomed in the third quarter of 2010 and will begin a slow recovery in 2011, increasing around 20 percent from a low base, and then increasing 40 percent in 2012 as markets recover.
