Current Market Update

Current Market Update


  • Existing home sales hit a ten-year high in March, with an annual rate of 5.71 million units sold. For the full year, 5.45 million homes were sold in 2016. Sales in the first quarter of 2017 were up 5.1% over sales during last year’s first quarter.1


  • The median price of existing homes sold in March was $236,400, up 6.8% from the median price in March 2016. Half of the properties sold in March were on the market for 34 days or fewer, down from a median of 47 days on the market a year earlier.1


  • New home sales rose 5.8% in March to an annualized rate of 621,000 units. That’s the second-fastest pace recorded since early 2008. Sales during the first quarter of 2017 are up 11.2% over sales during the first quarter of 2016.2


  • The median price of new homes sold in March was $315,100, up 1.2% from the median price in March 2016.2


  • The economic expansion slowed during the first quarter of 2017, as GDP rose at a 0.7% annualized rate. That’s down from the 2.8% annualized growth rate in 2016’s second half.3


  • The number of hours worked rose 1.6% during the first quarter while output rose 1.0%. That resulted in a 0.6% decline in productivity, or output per hour worked. Productivity has fallen in four of the past six quarters. Over the past two years, productivity has grown at a 0.6% average annual rate, compared to a 2.0% average over the past 20 years.4


  • The homeownership rate was 63.6% in the first quarter, up from 63.5% in the fourth quarter. A year ago, the rate was also 63.5%. In the second quarter of 2016, the homeownership rate was 63.2%, its lowest level since the 1960s.5


  • The average rate on 30-year fixed-rate mortgages in Freddie Mac’s survey was 4.02% during the week ending May 4, down 1 basis point from the week before. The April average was 4.05%, and the March average was 4.20%. All rates quoted have fees and points averaging 0.4% to 0.5% of the loan amount.6



1. “Existing-Home Sales Jumped 4.4% in March,” National Association of Realtors®, April 21, 2017. All sales data are seasonally adjusted; price and days on market are not.
2. “New Residential Sales, March 2017,” Census Bureau, April 25, 2017.
3. “National Income and Product Accounts – GDP First Quarter 2017 (Advance Estimate),” Bureau of Economic Analysis, Department of Commerce, April 28, 2017.
4. “Productivity and Costs, First Quarter 2017 – Preliminary,” Bureau of Labor Statistics, Department of Labor, May 4, 2017. Data reflect the nonfarm business sector.
5. “Quarterly Residential Vacancies and Homeownership, First Quarter 2017,” U.S. Census Bureau, April 27, 2017. Homeownership data are seasonally adjusted.
6. Freddie Mac Primary Mortgage Market Survey, May 4, 2017.
The FRB of St Louis Economic Data system (FRED) was used to collect data on existing home sales and prices, new home sales and prices, GDP, productivity, and homeownership.

Southern California Market Update – Feb 2017

Southern California Market Update – Feb 2017


February Home Sales Dip Year Over Year Across Most of Southern California; Median Sale Price Up Modestly Month Over Month and Up 7 Percent Year Over Year. New data released by CoreLogic® shows a total of 14,891 new and resale houses and condos sold in February 2017 in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties, down 3.4 percent month over month from 15,422 sales in January 2017* and down 1.7 percent year over year from 15,149 sales in February 2016.


The average change in sales between January and February is a gain of 0.7 percent. February sales have ranged from a low of 10,777 in 2008 to a high of 26,587 in 2004, and February 2017 sales were 13.5 percent below the February average of 17,215 sales since 1988 when data for this report begins (data start dates vary by county).


In February 2017, sales of newly built homes—detached houses and condos combined—were about 50 percent below the long-term February average. The resale market, however, is closer to its historical average with February 2017 resales coming in about 7.6 percent below the February average. Ignoring the 2003-2006 housing boom that was fueled by risky home loans, February 2017 resales were 4 percent below the month’s average. “Southern California’s February home sales fell a little from a year earlier; however, a closer analysis suggests demand was roughly flat – or even up a bit – from a year earlier,” said Andrew LePage, research analyst with CoreLogic. “That’s because this February had one less business day on which deals could be recorded, and the average number of transactions recorded daily was slightly higher compared with February 2016. Regardless, February 2017 home sales were about 14 percent below the average February sales tally over the last 30 years. Activity continues to be constrained by the decline in affordability and the relatively thin inventory of homes for sale. San Bernardino County, which has the region’s lowest median sale price and entices many first-time buyers and others priced out of coastal markets, was the only Southern California county to post a year-over-year increase in sales this February.”


The median price paid for all Southern California homes sold in February 2017 was $460,000 which is up 1.1 percent month over month from $455,000 in January 2017* and up 7 percent year over year from $430,000 in February 2016. The February 2017 median was 8.9 percent below the peak median of $505,000 reached in March, April, May and July of 2007; however, when the median sale price history is adjusted for inflation, the February 2017 median remained 19.5 percent below the peak. “All of the region’s counties saw a higher year-over-year increase in their median sale price in February compared with the prior month,” said LePage. “The regional median’s 7 percent year-over-year gain in February was the highest in 15 months, and exceeded the average year-over-year gain of 5.8 percent over the past 24 months. However, January and February sales data usually aren’t predictive, and if mortgage rates continue to increase it will be more difficult for home prices to rise as fast.


Mortgage rates are nearly impossible to predict, but there are signs, such as continued job growth and a pickup in inflation, that
they are likely to edge higher this year.” Home sales of $500,000 or more accounted for 44.2 percent of all sales in February 2017, up from 43.9 percent in January 2016 and up from 39.2 percent in February 2016. The number of homes that sold for $500,000 or more in February 2017 rose 11 percent compared with February 2016 and sales below $500,000 fell 9.7 percent over the same period. Sales of $800,000 or more
increased 10.5 percent year over year and sales of $1 million or more increased 14.1 percent. At the other end of the market, sales below $200,000 fell 23.5 percent in February 2017. Additional Southern California Highlights for February 2017:


Southern Californians took out approximately 5,300 home equity lines of credit (HELOCs) in February 2017. This was down about
18 percent from January 2017 and down about 6 percent from February 2016. The approximately 17,700 HELOCs originated in the
region in the three months ending in February 2017 fell about 1 percent from the same three-month period a year earlier. However,
there’s been a substantial gain in another method of tapping home equity: The number of cash-out refinances between December
2016 and February 2017 increased about 28 percent year over year.


Absentee buyers, mostly investors and some vacation-home buyers, bought 24 percent of all homes sold in February 2017. This is
up from 22.5 percent in January 2017 and down a hair from 24.2 percent in February 2016. The absentee share peaked in February
2013 at 32.2 percent, and the monthly average since 1988 is approximately 18 percent.
Cash buyers accounted for 25.8 percent of February 2017 home sales, up from 22.2 percent in January 2017 and up slightly from
25 percent in February 2016. The cash sales share peaked in February 2013 at 37.5 percent, and the monthly average since 1988 is
about 16 percent.
Jumbo mortgages accounted for 13.6 percent of the total number of home purchase loans used in Southern California in February
2017, down from 13.8 percent in January 2017 and up from 13.2 percent in February 2016. Jumbo loans represented 31.9 percent
of the total dollar volume of all home purchase originations in February 2017, down from 32.2 percent in January 2017 and up
from 29.8 percent in February 2016. Southern California’s jumbo share of all home purchase loan dollars peaked last year in June
at 34.3 percent. Jumbo loans are those that exceed the “conforming loan limit” which is set by regulation and varies by county.
Nationally, the base conforming loan limit for single-family homes this year is $424,100, but high-cost counties including San
Diego, Orange, Los Angeles and Ventura have higher limits of up to $636,150. A rise in the jumbo loan share of home purchase
loans can be related to higher home prices, an increase in the share of sales occurring in the market’s higher end, or greater
availability of funding for jumbo loans.
Government-insured, low-down-payment Federal Housing Administration (FHA) loans accounted for one out of every five
(20 percent) home purchase loans in Southern California in Februay 2017, down slightly from 20.3 percent in January 2017 and
down from 21.9 percent in February 2016. Riverside and San Bernardino counties experienced the region’s highest FHA share in
February of this year at 28.5 percent and 33.2 percent, respectively.
Real estate-owned (REO) sales represented 3 percent of total Southern California home sales in February 2017, down from
3.4 percent in January 2017* and down from 4.4 percent in February 2016. REOs are homes that lenders took back through
foreclosure and then sold on the open market.
* When necessary, January 2017 data was revised. Revisions are standard, and to ensure accuracy CoreLogic incorporates newly released data to provide updated results. Source: CoreLogic.

FHA Loan Limits for California 2017


FHA Loan Limits for California by County, 2017



CA County Name
FHA Loan Limit FHA Duplex Loan Limit
ALAMEDA $636,150 $814,500
ALPINE $463,450 $593,300
AMADOR $332,350 $425,450
BUTTE $293,250 $375,400
CALAVERAS $373,750 $478,450
COLUSA $275,650 $352,925
CONTRA COSTA $636,150 $814,500
DEL NORTE $275,650 $352,925
EL DORADO $488,750 $625,700
FRESNO $281,750 $360,700
GLENN $275,650 $352,925
HUMBOLDT $327,750 $419,550
IMPERIAL $275,650 $352,925
INYO $369,150 $472,550
KERN $275,650 $352,925
KINGS $275,650 $352,925
LAKE $275,650 $352,925
LASSEN $275,650 $352,925
LOS ANGELES $636,150 $814,500
MADERA $275,650 $352,925
MARIN $636,150 $814,500
MARIPOSA $322,000 $412,200
MENDOCINO $373,750 $478,450
MERCED $275,650 $352,925
MODOC $275,650 $352,925
MONO $529,000 $677,200
MONTEREY $575,000 $736,100
NAPA $636,150 $814,500
NEVADA $477,250 $610,950
ORANGE $636,150 $814,500
PLACER $488,750 $625,700
PLUMAS $336,950 $431,350
RIVERSIDE $379,500 $485,800
SACRAMENTO $488,750 $625,700
SAN BENITO $636,150 $814,500
SAN BERNARDINO $379,500 $485,800
SAN DIEGO $612,950 $784,700
SAN FRANCISCO $636,150 $814,500
SAN JOAQUIN $366,250 $463,750
SAN LUIS OBISPO $586,500 $750,800
SAN MATEO $636,150 $814,500
SANTA BARBARA $636,150 $814,500
SANTA CLARA $636,150 $814,500
SANTA CRUZ $636,150 $814,500
SHASTA $275,650 $352,925
SIERRA $304,750 $390,100
SISKIYOU $275,650 $352,925
SOLANO $431,250 $552,050
SONOMA $595,700 $762,600
STANISLAUS $299,000 $382,750
SUTTER $276,000 $353,300
TEHAMA $275,650 $352,925
TRINITY $275,650 $352,925
TULARE $275,650 $352.925
TUOLUMNE $331,200 $424,000
VENTURA $636,150 $814,500
YOLO $488,750 $625,700
YUBA $276,000 $353,000

VA Loan Limits for California 2017

VA Logo

VA Loan Limits with $0 Down Payment by California County

Loan amounts greater than the maximum loan limit will be required to have a down payment equal to 25% of the difference between the maximum loan limit, and the actual loan amount.

County State 100% Financing Loan Limit
ALAMEDA CA $636,150
ALPINE CA $463,450
AMADOR CA $424,100
BUTTE CA $424,100
COLUSA CA $424,100
DEL NORTE CA $424,100
EL DORADO CA $488,750
FRESNO CA $424,100
GLENN CA $424,100
HUMBOLDT CA $424,100
IMPERIAL CA $424,100
INYO CA $424,100
KERN CA $424,100
KINGS CA $424,100
LAKE CA $424,100
LASSEN CA $424,100
MADERA CA $424,100
MARIN CA $636,150
MARIPOSA CA $424,100
MERCED CA $424,100
MODOC CA $424,100
MONO CA $529,000
MONTEREY CA $575,000
NAPA CA $615,250
NEVADA CA $477,250
ORANGE CA $636,150
PLACER CA $488,750
PLUMAS CA $424,100
SAN BENITO CA $636,150
SAN DIEGO CA $612,950
SAN MATEO CA $636,150
SANTA CRUZ CA $636,150
SHASTA CA $424,100
SIERRA CA $424,100
SISKIYOU CA $424,100
SOLANO CA $424,100
SONOMA CA $595,700
SUTTER CA $424,100
TEHAMA CA $424,100
TRINITY CA $424,100
TULARE CA $424,100
TUOLUMNE CA $424,100
VENTURA CA $636,150
YOLO CA $488,750
YUBA CA $424,100



Welcome to La Jolla Cove, Home of the Seals


La Jolla Cove is a picturesque cove and beach in La Jolla, San Diego, California. The Cove is a very small beach in comparison to the other beaches in San Diego and is within walking distance of the Children’s Pool Beach. The Children’s Pool Beach consists of a built sea wall that was made to create a safe zone for children and families to come and enjoy the waters without being bombarded by the ocean waves. La Jolla is also known as “the jewel” of San Diego. Up on the bluffs above the beach and stretching south to other nearby beaches including Shell Beach, is Scripps Park, a grassy area with trees and other plantings. The Park is commonly used for picnicking and relaxing.

Part of the beach and shallow water at the Cove
Lifeguards are present at the Cove every day of the year from 9 am until the sun sets. The Cove is a very popular spot for swimming, snorkeling and scuba diving. Due to the fact that La Jolla Cove is within the San Diego-La Jolla Underwater Park (a marine refuge area), swimming devices such as surfboards, boogie boards, and even inflatable mattresses are not permitted, and kayakers are not allowed into the Cove; these rules are carefully enforced by the lifeguards on duty. Because of the ecological reserve, no fishing or collecting of marine invertebrates, (even taking dead specimens or seashells) is allowed in this area. All sea animals in this area are protected by law, including the orange Garibaldi fish, which are unusually common in the Cove. A few sea lions can sometimes be seen in the deeper water of the Cove or basking on rocks.

As is the case at other beaches, the lifeguard’s chalkboard indicates the time of the next high or low tide, and also the water temperature. The water temperature in the Cove is sometimes cooler than in some other areas of San Diego’s coastline because the Cove faces out into deeper water. The weather at the cove elicits its rare microclimate that seldom hits below 50 degrees or surpasses 90 degrees.

Right at the top of the Cove, conveniently, there is a group of outdoor showers, and large public restrooms which include an indoor area for changing in and out of swimsuits etc.

The La Jolla Cave, also known as “Sunny Jim Cave”, is a short walking distance from the Cove and from the local businesses that are situated up above the shoreline. The cave is accessible through The Cave Store, which charges a nominal fee to go down a staircase leading to the cave itself.

The La Jolla Cove is home to the annual “La Jolla Cove Rough Water Swim” which is one of the oldest ocean swims in the world.

All About Short Sales


What is a short sale

A short sale is a sale of Real Estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens’ full amounts. Whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency.

Short sale agreements do not necessarily release borrowers from their obligations to repay any shortfalls on the loans, unless specifically agreed to between the parties. However, in California, legislation was passed to preclude deficiencies after a short sale is approved. The same is true of lenders on first loans and lenders on second loans — once the short sale is approved, no deficiencies are permitted after the short sale. (SB 931, SB 458 – Calif. Code of Civil Procedure §580e).

Credit considerations

A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower. Both often result in damage to a borrower’s credit scores, and both may lower a person’s credit scores to a similar degree. However there is the possibility that a short sale deficiency will not be reported to the credit bureaus if it can be negotiated as part of the short sale.

Since deficiency amounts and late payments can affect a borrower’s credit scores, doing away with either or both of them is preferable. The less late payments a borrower has, the more it will help them in a short sale, and always try to negotiate the lender’s agreement that they won’t report a deficiency balance to the credit bureaus.

Relocation assistance cash

Banks are more commonly offering relocation assistance cash for borrowers who elect to short sale the property rather than let it go to foreclosure. Banks have paid out cash relocation assistance to borrowers, usually in amounts ranging anywhere from $3,000 to $30,000 depending on the value of the property. Banks have also commonly given ‘cash for keys’ after foreclosure but this is never guaranteed, the amounts are usually less and decrease as time goes on, and the ex homeowner is in a much less advantageous position to negotiate. Control is an important element that a short sale can offer vs. foreclosure.

Other factors to consider



Overview of the short sale process

Most creditors require the borrower to prove they have an economic or financial hardship preventing them from being able to pay the deficiency.

Creditors holding liens against real estate can include primary mortgages, junior lien holders—such as second mortgages, home equity lines of credit (HELOC) lenders, home owners association HOA (special assessment liens)—all of whom will need to approve individual applications for a short sale, should they be asked to take less than what is owed.

Most large creditors have special loss mitigation departments that evaluate borrowers’ applications for short sale approval. Often creditors use pre-determined criteria for approving the borrowers and the terms of the sale of the properties. Part of this process typically includes the creditor(s) determining the current market value of the real estate by obtaining an independent evaluation of the property with an appraisal, a broker’s price Opinion (BPO), or a broker opinion of value (BOV). One of the most important aspects for the borrower in this process is putting together a proper real estate short-sale package, including hardship letter explaining why a short sale is needed.

Depending on each creditor’s policy and the type of loan, creditors may accept applications from borrowers even if the borrower is not in default with their payments. Due to the overwhelming number of defaulting borrowers due to mortgage failures and other causes as part of the 2008-2012 global financial crisis, many creditors have become adept at processing such short sales applications; however, it can still take several months for the process from start to finish, often requiring multiple levels of approval.

Additional parties

Some junior lien holders and others with an interest in the property may object to the amounts other lien holders are receiving. It is possible for any one lien holder to prevent a short sale by refusing to agree to negotiate a reduction in their payoff to release their lien. (Iowa has a procedure, sale free of liens, which allows a foreclosure court to “cram down” a short sale over the objections of the junior creditors.)

If a creditor has mortgage insurance on their loan, the insurer will likely also become a third party to these negotiations, since the insurance policy may be asked to pay out a claim to offset the creditor’s loss. The wide array of parties, parameters and processes involved in a short sale can make it a complex and highly specialized form of debt renegotiation. Short sales can have a high risk of failure from inability to obtain agreement from all parties, or they might not be approved in time to prevent a scheduled foreclosure date.

Is a short sale right for you?

Whether or not a short sale is right for you will depend on your unique situation. Every borrower is different and some will have more options than others. You should first try to qualify for a loan modification program to see if you can lower your payments to a manageable level. If that is not possible then a short sale may be your next best option. Contact us any time for more information.


Contact THE O’NEIL TEAM at: 760-237-0352 or

Southern California Real Estate Markets Rise

Southern California’s housing market displayed renewed vigor in April, with sales rising 8.5 percent compared to the same time last years, according to home sales data released Tuesday.

Sales and prices increased in all six Southern California counties, CoreLogic announced in its monthly sales report.

Last month sales of new and previously owned houses and condominiums increased from 20,008 to 21,708 year over year, the company said.

Sales last month were the second highest for the month of April since 2006.

“Sales activity picked up last month, making it one of the stronger Aprils since the housing bust, though sales remained below average,” said Andrew LePage, a data analyst for CoreLogic. “Many buyers still face credit and affordability hurdles, and the inventory of homes for sale remains relatively tight in many markets. New home construction is still well below historically normal levels, too.”

Last month, the median price increased 6 percent from $404,000 to $429.000. That’s the highest median price for the region since November 2007, when it was $435,000.

The median sale price has risen year over year in every month since April 2012.

In Los Angeles County sales increased 6 percent from 6,642 a year ago to 7,038. The median price increased 10 percent from $441,000 to $485,000.

In San Bernardino County sales rose from 2,434 to 2,446, the smallest gain in the region. The median price increased 5 percent from $240,000 to $252,500. The county remains the region’s lowest priced market.

The price gains continue to reflect sales of more expensive homes dominating the market and a lack of bargains as the economy continues healing from the Great Recession.

During April sales of homes costing $500,000 or more accounted for 39 percent market share, the most for any month since a 40 percent share in November 2007.

Foreclosure sales accounted for a 4.5 percent share and short sales at 4 percent of the share.

San Bernardino County’s short sale share of 7.6 percent was the highest among the six counties.

Absentee buyers — mostly investors — purchased 24 percent of the homes sold in April while cash buyers also accounted for a 24 percent share.

Distressed Home Sale Statistics


Equity home sales make up four of five sales and reach highest level in nearly six years

LOS ANGELES (July 23) – The share of equity home sales in California continued to expand in June, comprising four of every five home sales, thanks primarily to a drop in distressed sales. Meanwhile, sales of REOs fell into the single-digits for the third straight month and registered levels not seen since September 2007, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

Distressed housing market data:

• The combined share of all distressed property sales continued to decline in June, dropping to 20.1 percent in June, down from 21.8 percent in May and down from 42.2 percent in June 2012. Twenty-one of the 36 reported counties showed a month-to-month decrease in the share of distressed sales, with San Mateo and Santa Clara each recording the smallest share at 7 percent for both counties in June.

• The share of equity sales – or non-distressed property sales – continued to expand in June and now makes up four in five sales, the highest share since December 2007. The share of equity sales in June increased to 79.9 percent, up from 78.2 percent in May. Equity sales made up more than half (57.8 percent) of all sales in June 2012.

• Of the distressed properties, the share of short sales was 12.9 percent in June, down from 14 percent in May and down from 21.4 percent a year ago. The June 2013 figure was the lowest since June 2009. The continuing decline in short sales indicates more previously underwater homes are moving into positive equity as home prices remain on an upward trend.

• The share of REO sales also continued to fall, dropping to single-digits for the third straight month, down from 7.3 percent in May to 6.6 percent in June and from 20.4 percent in June 2012.

• The available supply of homes loosened in June, particularly for equity sales, but remained tight. At 1.8 months, June’s Unsold Inventory Index for REOs was essentially unchanged from 1.7 months in May. The supply of short sales inched upward from 2.3 months in May to 2.4 months in June. The June Unsold Inventory Index for equity sales rose from 2.8 months in May to 3.1 months in June.


View a chart of pending sales compared with closed sales


Type of Sale Jun-13 May-13 Jun-12
Equity Sales 79.9% 78.2% 57.8%
Total Distressed Sales 20.1% 21.8% 42.2%
REOs 6.6% 7.3% 20.4%
Short Sales 12.9% 14.0% 21.4%
Other Distressed Sales (Not Specified) 0.5% 0.5% 0.4%
All Sales 100.0% 100.0% 100.0%

Single-Family Distressed Home Sales by Select Counties (percent of total sales)

County Jun-13 May-13 Jun-12
Alameda 9% 11% NA
Amador NA NA 55%
Butte 16% 20% 36%
Contra Costa 10% 9% NA
El Dorado 22% 21% 44%
Fresno 36% 38% 54%
Humboldt 20% 16% 28%
Kern 25% 25% 48%
Kings 44% 38% NA
Lake 35% 36% 63%
Los Angeles 21% 23% 41%
Madera 33% 52% 57%
Marin 9% 8% 20%
Mendocino 33% 31% 48%
Merced 36% 32% 52%
Monterey 32% 29% 50%
Napa 13% 20% 47%
Orange 14% 14% 31%
Placer 16% 21% 41%
Riverside 26% 29% 52%
Sacramento 26% 29% 53%
San Benito 26% 30% 63%
San Bernardino 29% 32% 58%
San Diego 6% 7% 22%
San Joaquin 35% 36% 61%
San Luis Obispo 13% 15% 34%
San Mateo 7% 4% 21%
Santa Clara 7% 7% 23%
Santa Cruz 11% 10% 42%
Siskiyou 24% 30% 59%
Solano 30% 36% 63%
Sonoma 17% 19% 40%
Stanislaus 30% 40% 61%
Tehama NA NA 45%
Tulare 27% 37% 54%
Yolo 24% 25% 46%
California 20% 22% 42%

Click on graph for larger image
Share of Equity Sales -June2013

Click on graph for larger image
Median Price by Type of Sale -June2013

C.A.R.’s Distressed Home Sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state.

Mortgage rates are moving up again


Following a two-week decline, mortgage rates are once again on the rise.

After trending downward the past two weeks, the average rate on a 30-year fixed loan rose to 0.08 percentage point to 4.39 percent this week, according to the latest survey by mortgage lender Freddie Mac. One year ago, the average on a 30-year fixed-rate loan was trending at 3.55 percent, an increase of 0.84 percentage points.

The average rate on a 15-year fixed loan saw its own increase, albeit slight. Previously at 3.39 percent a week ago, the average on a 15-year loan rose by 0.04 percentage point to 3.43 percent. A year ago, the average on a 15-year loan was at 2.83 percent, an increase of 0.6 percentage point.

In early July, the average on a 30-year loan spiked to a two-year high over concerns that the Federal Reserve would curb its massive bond-purchase program. As concerns eased, so did mortgage rates, including the 30-year fixed, which fell to 4.31 percent before seeing an uptick this week. Comparably, the average on a 15-year fixed loan had previously achieved a historic low in early May, when it fell to 2.56 percent, before jumping to as high as 3.53 percent in mid-July.

The latest rise in mortgage rates can be attributed to the release of report by the Fed that indicated it would continue its stimulus policies involving $85 million worth of Treasury notes and mortgage-backed securities in the interim, but will likely begin to curb its purchases. Tapering its buy-back program is expected to continue to put upward pressure on mortgage rates in the coming months.

“Mortgage rates rose slightly leading up to the Federal Reserve’s monetary policy statement this week,” Frank E. Nothaft, Freddie Mac vice president and chief economist, said in a statement. “The Fed indicated that the economy expanded at a modest pace, but the unemployment rate remains elevated.”

According to mortgage expert Al Bowman, the Labor Department recorded 326,000 new claims for unemployment benefits, which was nearly 20,000 less than what was expected. Despite a high unemployment rate, the reduced number or claims filed indicates “that the employment sector was stronger” than originally thought.

The average rate on a 5-year hybrid adjustable loan rose slightly from 3.16 percent a week ago to 3.18 percent. After holding firm at 2.66 percent over a four week period that ran from late June through July, the average on a 1-year hybrid adjustable loan dropped for the second consecutive week, falling ever-so-slightly from 2.65 percent to 2.64 percent.

Looking ahead, mortgage rates are expected to trend downward. In the latest Mortgage Rate Trend Index by, 71 percent of the loan experts polled believe rates will either go down or remain static over the next week. “Mortgage bond yields fell after the Fed’s monetary policy statement offered no timetable for reducing (quantitative easing) bond purchases,” says Holden Lewis, assistant managing editor. “That’s the new normal, at least until the employment report comes out August 2.”

Up, Up and Away – Soaring Over Temecula

This is an example of a WordPress post, you could edit this to put information about yourself or your site so readers know where you are coming from. You can create as many posts as you like in order to share with your readers what exactly is on your mind.

This is an example of a WordPress post, you could edit this to put information about yourself or your site so readers know where you are coming from. You can create as many posts as you like in order to share with your readers what exactly is on your mind. This is an example of a WordPress post, you could edit this to put information about yourself or your site so readers know where you are coming from. You can create as many posts as you like in order to share with your readers what exactly is on your mind.

This is an example of a WordPress post, you could edit this to put information about yourself or your site so readers know where you are coming from. You can create as many posts as you like in order to share with your readers what exactly is on your mind.