Thursday, November 17, 2016


Today's Top  Luxury Estates in Los Angeles, Phoenix, San Diego, San Francisco
and Seattle Listed For Sale

                                           .                                                             
                                
                                   "A mansion is a large and stately dwelling"

The word mansion derives through Old French from the Latin word mansio "dwelling", an abstract noun derived from the verb manere "to dwell". The English word "manse
originally defined a property large enough for the parish priest to maintain himself, but a 
mansion is no longer self-sustaining in this way.  'Manor' comes from the same root territorial holdings granted to a lord who would remain there. Hence it is easy to see how the word 'Mansion' came to have its meaning.

The exact definition of the word “mansion” varies but in U.S. real estate terms, it’s generally defined as a single family residence of more than 8,000 square feet. The Merriam-Webster Dictionary just calls it “a large and imposing residence.” Either way, these sizeable dwellings are undoubtedly some of the most beautiful and celebrated examples of residential architecture.
Today's Best Mansions 
www.todaysbestmansionsforsale.com

#1     46 Star Island Drive, Miami Beach, FL 33139 with 10 bedrooms, 12 baths, and 20,000 sq.ft. is listed for sale at $65,000,000

46 Star Island Dr, Miami Beach, FL 33139

Historic Masterpiece built by Miami Beach Pioneer Carl Fisher available for the first time in 30 years. This 20,000 sf home with more than 40 rooms throughout was completely renovated in 2016 giving meticulous attention to it's original Integrity. Soaring ceilings, ballroom size living room, 3000 bottle wine cellar, 3 offices, staff quarters and more. Situated on the tip of Star Island, the most sought after address in Miami Beach, with over 61,000 sf of land and 255' of panoramic waterfront views.

46 Star Island Dr, Miami Beach, FL 33139

46 Star Island Dr, Miami Beach, FL 33139

46 Star Island Dr, Miami Beach, FL 33139

46 Star Island Dr, Miami Beach, FL 33139

46 Star Island Dr, Miami Beach, FL 33139

46 Star Island Dr, Miami Beach, FL 33139


#2      917 Loma Vista Drive, Beverly Hills, CA 90210 with 7 bedrooms, 13 baths, and 12,000 sq.ft. is listed for sale at $28,800,000.
 

Located in prime BH at the base of Trousdale estates & sited just above the landmark Greystone Mansion this unique 2 acre trophy estate sits privately behind gates. Once past the gated entry a large motor court w/ fountain leads to a sprawling 1-story estate which is apprx. 12,000 sf. Conceived and designed by world renowned architects and designers including Richard Landry, Didier Michot and Roy Sklarin, the interiors are of uncompromising quality, design and craftsmanship. Every detail, finish and surface has been masterfully executed. High ceilings, beautifully inlaid floors and exquisitely detailed moldings can be found throughout. The main home offers 5 bdrm suites, 7 baths and
 2 powder rooms. A separate 2 bdrm, 2 bath guest house w/ kitchen is also offered. The park-like grounds include pool, spa, fountains, spacious patio areas, expansive grassy yard and organic gardens. Magical hillside and city views complete this estate.















                               


Today's Top Real Estate News 

Housing Starts Explode To 9 Year High

By Jann Swanson
Mortgage News Daily

Housing permits improved for the second straight month in October but housing starts skyrocketed, rising 25.5 percent above September's level to a seasonally adjusted annual rate of 1,323,000 units.  The increase came on the heels of a 9 percent downturn in September when a 39 percent drop in multi-family starts offset what was an otherwise encouraging gain in the single-family sector.  That original estimate was revised slightly higher in today's report from the U.S. Census Bureau and Department of Housing and Urban Development, rising from 1,047,000 units to 1,054,000.  October's gain put housing starts on a pace 23.3 percent above that of October 2015.

The improvement in housing starts was broad based.  All four regions of the country posted double digit percentage gains.

The October surge was not a total surprise but still outpaced expectations.  Analysts surveyed by Econoday had been looking for an increase of 11.6 percent to a rate of 1,168,000 units.  The actual number was well above even the high point of estimates which ranged from 1,111,000 to 1,210,000.

Single family housing starts rose 10.7 percent month-over-month to a seasonally adjusted rate of 869,000, 21.7 percent above the rate a year earlier.  September housing starts were revised from 783,000 to 785,000. 

September's dreadful multi-family numbers did not change much on revision, rising from 250,000 units to 255,000, but starts in October more than compensated, gaining 74.5 percent to 445,000 units, 28.2 percent higher than the October 2015 rate.

On an unadjusted basis, there were 114,900 housing units started in October compared to 94,800 in September, with 73,500 of the starts single-family units, up from 67,700.  Multi-family starts increased by 15,000 to 40,500.

Housing permits, which had lagged in late summer, improved slightly on September's 6.3 percent gain, rising 0.3 percent to an annual rate of 1,229,000 units from 1,225,000 in September.  This was up 4.6 percent from the October 2015 estimate of 1,175,000 units.
Single family permits were at a seasonally adjusted rate of 762,000, a 2.7 percent change from September's 742,000 (revised from 739,000) figure and 5.1 percent higher than the prior October.  Multi-family permits fell 1.8 percent to 439,000 units, 5.8 percent above the October 2015 pace.

Analysts had expected permits to drop 2.9 percent to 1,190,000 units.  The range of estimates gathered by Econoday was 1,170,000 to 1,210,000 units.

On an unadjusted basis, there were 97.900 housing permits authorized in October, down from 107,700 in September.  Single-family permits numbered 60,500, down from 63,300.
Housing units were completed during the month at a seasonally adjusted annual rate of 1,055,000 units, 749,000 of which were single-family.  The total is a gain of 5.5 percent from September completions that were at the rate of 1,000,000 and 7.2 percent higher on an annual basis.  

The single-family completion rate was 3.9 percent higher month-over-month and 17.0 percent year-over-year.  The rate of completions of multi-family units was 300,000 units, up 12.8 percent from September but 10.4 percent below the previous October.
There were 1,059,400 housing units under construction at the end of October, a non-seasonally adjusted number.  Of that number 451,900 were single-family units.  Permits had been issued for 125,700 housing units for which construction had not yet begun by month end; 63,800 were for single family units.

Housing permits in the Northeast plunged 21.1 percent from September levels and were down 19.2 percent year-over-year. The region, however, shared the jump in housing starts, up 44.8 percent for the month and 2.2 percent compared to the same month in 2015. The completion rate was down 19.6 percent and 32.8 percent from the earlier periods.

In the Midwest permits were up 12.1 percent for the month, and were running 15.9 percent above October 2015.  Housing starts jumped 44.1 percent and 24.4 percent compared to the earlier periods.  Completions rose 54.5 percent from September and 21.4 percent from the same month in 2015.

Permitting in the South fell off by 2.4 percent from the September pace and were down 4.2 percent from a year earlier, but starts were up significantly, rising 17.9 percent and 20.4 percent respectively. The completion rate was up 2.1 percent for the month and 10.1 percent annually.

The West remained strong; permits rose 7.5 percent compared to September and 28.4 percent year-over-year and starts were up by 23.2 percent and 40.2 percent.  Completions fell slightly from September, 1.2 percent, but remained 11.9 percent ahead of a year earlier.
Today's Top LA Luxury Estates
larealestateupdates.blogspot.com

http://www.annenbergtvnews.com/images/uploads/LOS_ANGELES_SKYLINE_PHOTO.jpg

The median home value in Los Angeles County is $532,800. Los Angeles County home 
values have gone up 6.3% over the past year. Zillow predicts they will rise 0.9% within the 
next year

The median home value in Brentwood, 90049 is $2,302,200. Brentwood home values have
gone up 3.7% over the past year.  Zillow predicts they will rise 0.6% within the next year

The median home value in Malibu is $2,500,600. Malibu home values have declined -0.8%
 over the past year. Zillow predicts they will fall -0.7% within the next year.

The median home value in Beverly Hills is $2,998,500. Beverly Hills home values have gone up up 4.7% over the past year.  Zillow predicts they will rise 0.2% within the next year.

#1     10901 Chalon Road, Bel Air, CA 90077 with 6 bedrooms, 7 baths, 4000+-sq.ft.  is listed for sale at $5,995,000.

10901 Chalon Rd, Los Angeles, CA 90077





An amazing development opportunity on an over 36, 000 sq.ft. lot in prestigious lower Bel Air. Approved plans and permits for a stunningly designed home by the nationally renowned architectural firm Swatt/Miers Architects. Ground has already been broken and construction has begun on this unique Bel Air residence. Set behind gates and hedges and sited amongst multi-million dollar estates, the home offers privacy and seclusion yet is located just minutes from world-class shopping, entertainment, and dining in Beverly Hills, West Hollywood, UCLA and Brentwood. This architectural masterpiece embodies the principles of modern design with seamlessly fused interior and exterior space and evokes a warm modern expression through the skillful integration of wood and glass.

10901 Chalon Rd, Los Angeles, CA 90077

10901 Chalon Rd, Los Angeles, CA 90077

10901 Chalon Rd, Los Angeles, CA 90077

10901 Chalon Rd, Los Angeles, CA 90077

10901 Chalon Rd, Los Angeles, CA 90077

10901 Chalon Rd, Los Angeles, CA 90077



#2     27777  Winding Way, Malibu, CA 90265 with 5 bedrooms, 8 baths, and 
10,135 sq.ft. is listed for $27,750,000.


Breathtaking estate just completed on prestigious Winding Way. Reminiscent of one of the great villas on the French Riviera, and featuring the highest level of quality, craftsmanship, and state-of-the-art details. Located at the end of a long private gated driveway, featuring its own guard house, that sweeps past rose gardens to a huge motor court. The grand foyer features a sweeping double staircase and there are expansive head-on ocean views from every room. Beautiful dining room, extremely large gourmet kitchen with open family room, library/media room, incredible master suite with luxurious baths and walk-in closets with all ensuite bedrooms. Spectacular grounds, flat lawns, tennis court, golf cart path, bocce ball court, stunning infinity edge pool, with incredible outdoor terraces/loggias perfect for major entertaining. Elegant, timeless, and perfect for today's lifestyle. Completely private and secluded.












Today's Top Phoenix/Scottsdale/Paradise Valley/Carefree Luxury Estates
phoenixluxuryestates.com



Image result for phoenix skyline photos

The median home value in Scottsdale is $416,600. Scottsdale home values have gone up 4.2% over the past year and Zillow predicts they will rise 2.5% within the next year.

The median home value in Carefree is $737,400. Carefree home values have gone up 3.0% over the past year and Zillow predicts they will rise 2.1% within the next year.


The median home value in Paradise Valley is $1,639,200. Paradise Valley home values have  gone up 3.4% over the past year and Zillow predicts they will rise 2.3% within the next year.


#1     7835 N Ironwood Drive, Paradise Valley, AZ 85253 with 6 bedrooms, 7 baths, and 9,153 sq.ft. is listed for sale at $8,100,000.

7835 N Ironwood Dr, Paradise Valley, AZ 85253

Sitting on 3.5 acres behind 3 gated entries is a captivating, very private 6 bdrm Spanish Colonial Revival home + guest home designed by Mike Higgins. The estate has 5 car garages at the main home + a drive-thru 1,798 sf a/c garage w/high ceilings for 5 cars, RV or boat. Featured in Phoenix Home and Garden,this architecturally beautiful estate showcases distressed planked wood flooring,an abundance of decorative tilework,unique design details, Douglas fir beams,romantic archways + wrought iron accents. The chef's kitchen has a big mesquite center island and intimate breakfast rm with fireplace opening to a large family rm. French doors open to patios with mountain views + outdoor living with extensive lawns,a fabulous pool + spa,bocci ball,putting green,fountains,courtyards plus an acre.

7835 N Ironwood Dr, Paradise Valley, AZ 85253


























7835 N Ironwood Dr, Paradise Valley, AZ 85253


7835 N Ironwood Dr, Paradise Valley, AZ 85253


7835 N Ironwood Dr, Paradise Valley, AZ 85253


7835 N Ironwood Dr, Paradise Valley, AZ 85253


7835 N Ironwood Dr, Paradise Valley, AZ 85253


7835 N Ironwood Dr, Paradise Valley, AZ 85253


#2     37801 N Stirrup Circle, Carefree, AZ 85377 with 8 bedrooms, 8 baths, and 
9,437 sq.ft. is listed for sale at $2,650,000


Stirrup Circle Ranch is beautifully tucked into the rolling hills of Carefree.  This approximate 10 acre gated equestrian estate offers a main house with attached guest house, a detached guest house, fully-equipped barn fitted with six over-sized stalls with runs, arena, two turnout areas, and an RV barn. The main house offers an ideal setting for effortless living and is complimented by a heated indoor diving pool. Connected to the pool is an attached guest house, which is perfect for guests or as an in-law suite. Impressive mountain and city light views surround the main house, providing the picturesque backdrop for outdoor entertaining. The spacious master suite boasts a handsome office, dual vanities, steam shower, jetted soaking tub, and private patio with a cozy fireplace.














Today's Top San Diego Luxury Estates
sandiegorealestateflashreport.com

Image result for san diego skyline art


The median home value in San Diego County is $516,200. San Diego County home values have gone up 5.2% over the past year.  Zillow predicts they will rise 1.9% within the next year.  

The median home value in La Jolla is $1,685,000. La Jolla home values have gone up 6.1% over the past year and Zillow predicts they will rise 2.1% within the next year

The median home value in Solana Beach, 92075 is $1,257,000. Solana Beach home values have gone up 2.6% over the past year and Zillow predicts they will rise 1.4% within the next year.


The median home value in Del Mar, 92014 is $1,602,400. Del Mar home values have gone up 2.6% over the past year and Zillow predicts they will rise 1.1% within the next year.


#1     15152 Las Planideras Drive, Rancho Santa Fe, CA 92067 with 6 bedrooms, 
6 baths, and 5,483 sq.ft. is listed for sale at $3,496,000

15152 Las Planideras Dr, Rancho Santa Fe, CA 92067

Welcome to Stone West. Unique traditional French Country estate, private gated, located on the easy access Southwest side of the R.S.F. covenant. Huge 2.69 acres, wooded low-maintenance parcel high up on the hill with westerly views toward the race track. Daily cool ocean breeze off nearby Del Mar beaches.

15152 Las Planideras Dr, Rancho Santa Fe, CA 92067

15152 Las Planideras Dr, Rancho Santa Fe, CA 92067

15152 Las Planideras Dr, Rancho Santa Fe, CA 92067

15152 Las Planideras Dr, Rancho Santa Fe, CA 92067

15152 Las Planideras Dr, Rancho Santa Fe, CA 92067


#2     16250 Rambla De Las Flores, Rancho Santa Fe, CA 92067 with 5 bedrooms, 
8 baths, and 12,553 sq.ft. is listed for sale at $8,000,0000







Extraordinarily elegant single-level Mediterranean inspired estate located in the highly desired Rancho Santa Fe Covenant exudes sophistication, refinement and luxury. Through regal gates, enter this tranquil, private sanctuary replete with beautiful fountains, cascading waterfalls to the pool/spa and multiple private courtyards. With $3M in upgrades recently lavished on the inside and out of this magnificent home, no expense was spared in the attention to detail.


























Today's Top San Francisco Luxury Estates
sanfranciscorealestateupdates.com

Image result for san francisco skyline photos





The median home value in San Francisco is $1,104,000. San Francisco home values have gone up 0.6% over the past year and Zillow predicts they will fall -0.4% within the next year.

The median home value in Sausalito is $1,203,400. Sausalito home values have gone up 6.6% over the past year and Zillow predicts they will rise 0.9% within the next year

The median home value in Tiburon is $2,360,800. Tiburon home values have gone up 2.6% over the past year and Zillow predicts they will fall -0.0% within the next year.


The median home value in Saratoga is $2,331,600. Saratoga home values have gone up 1.1% over the past year and Zillow predicts they will fall -1.1% within the next year



#1     180 La Montagne Court, Los Gatos, CA 95032 with 4 bedrooms, 5 baths, and 4,248 sq.ft. is listed for sale at $2,899,900.

180 La Montagne Ct, Los Gatos, CA 95032

Beautiful Mediterranean Los Gatos property. Dramatic architecture. Bright and open floor plan. High ceiling. Chef kitchen. Formal living and dining rooms. 4 Bedrooms + Office. 4.5 Bathrooms. Master bedroom with fireplace, walk-in closet, sink in tub and shower. Downstairs with wine cellar, full bar and entertainment room. Curving staircase w/ custom wrought iron. Close to La Rinconada Country Club and Courtside. 3 cars attached garage with a paver driveway.

180 La Montagne Ct, Los Gatos, CA 95032

180 La Montagne Ct, Los Gatos, CA 95032

180 La Montagne Ct, Los Gatos, CA 95032


180 La Montagne Ct, Los Gatos, CA 95032

180 La Montagne Ct, Los Gatos, CA 95032

180 La Montagne Ct, Los Gatos, CA 95032



#2     2650 21st Street, San Francisco-Inner Mission, CA 94110 with 8 bedrooms,
 7 baths, and 4,00 sq.ft. is listed for sale at $5,495,000.








Transformed from a 1920's shoe repair shop into a stunning residential gem, this corner building is a light-filled urban retreat. The beautifully crafted facade surrounds a breathtaking modern and extremely livable home. Soaring ceilings with dramatic scale, outdoor spaces over four levels, custom Spa/Sauna, Wine Cellar, Movie Theater, Roof Deck, Thermador/Leicht Kitchen. Three Bedrooms two bathrooms all on top, separate cottage perfect for an office/guest suite. 2 beds 2 baths on 1st flr, 2 more on lower level. 20th street gourmet restaurants and 280/101 access 1 blk away. 2 car garage with 220 outlet. Radiant heat in 7 zones 3 gas fireplaces.




















Today Top Seattle Luxury Estates
seattleluxuryrealestateupdates.com

Image result for seattle skyline photos



The median home value in Kirkland is $576,800. Kirkland home values have gone up 14.6%  over the past year and Zillow predicts they will rise 7.1% within the next year.

The median home value in Seattle is $592,200. Seattle home values have gone up 15.3% over the past year and Zillow predicts they will rise 6.9% within the next year. 

The median home value in Bellevue is $730,000. Bellevue home values have gone up 13.6% over the past year and Zillow predicts they will rise 5.9% within the next year

The median home value in Mercer Island is $1,240,400. Mercer Island home values have 

gone up 12.2% over the past year and Zillow predicts they will rise 6.4% within the next year.

The median home value in Clyde Hill is $2,200,500. Clyde Hill home values have gone up 10.1% over the past year and Zillow predicts they will rise 5.5% within the next year.


The median home value in Medina is $2,389,900. Medina home values have gone up
12.8% over the past year.  Zillow predicts they will rise 5.1% with in the next yea
#1       3268 Hunts Point Road, Hunts Point, WA 98004 with 4 bedrooms, 5 baths, and 6,800 sq.ft. is listed for sale at $8,980,000.










E.
Experience European grandeur on the shores of Lake Washington. A gated entry leads to this refined estate w/90 of sought after Hunts Point waterfront. Fountains & gardens line the walkway to the majestic entryway. Soaring ceiling in the great room adds volume as French doors open to create an indoor-outdoor space for the most fabulous soirees. Luxurious details throughout from epicurean kitchen to the master suite. Endless space to relax, entertain and play. Wonderful grounds and a private dock.


















#2     1000 Waterfront Lane, Seattle, WA 98118 with 7 bedrooms, 11 baths, and 
12,330 sq.ft. is listed for sale at $8,688,000.



Iconic gated estate offers 138' of waterfront and mountain views. This updated custom 
home has the finest in quality, design and finish details. Fabulous Chef's gourmet kitchen with Miele appliances, granite tops, and entertaining island. Caretaker's cottage/home theater/gym/pool/elevator/steam/sauna/indoor spa and 2 master suites are just a few of the spectacular features. Rolling lawn leads to the outdoor waterfall, grotto, and private dock with year-round deep moorage. Truly one of a kind waterfront retreat.


                            






Mortgage News Daily Update


Product
TodayYesterdayChangeLowHigh
30 Yr FRM4.00%4.02%-0.023.34%4.11%
15 Yr FRM3.25%3.26%-0.012.69%3.30%
FHA 30 Year Fixed3.75%3.75%--3.15%3.75%
Jumbo 30 Year Fixed4.08%4.09%-0.013.41%4.10%
5/1 Yr ARM2.99%2.97%+0.022.80%3.10%
Updated: 11/16/16 4:50 PM



Mortgage Rates Finally Catch a Break
Nov 16 2016, 4:40PM

Mortgage rates finally caught a break today, moving somewhat lower after hitting the highest levels of the year yesterday afternoon.  In fact, several lenders moved rates even higher to start the day today, due to weakness in bond markets this morning.  As the day progressed, bond markets found their footing, and many lenders offered mid-day improvements on rate sheets (aka positive reprices).
  
While the reprices brought today's average effective rate below yesterday's, we're still dealing with 4.0% as the most prevalently-quoted conventional 30yr fixed rate on top tier scenarios.  Most borrowers would only see improvements in the form of slightly lower upfront costs.  Relative to last Monday, most borrowers would be seeing rates that are 0.375 - 0.5% higher this week.  If you're just getting caught up with the massive mortgage rate drama of the past week, here are the relevant recaps:

From a strategy standpoint, while it's nice to have made some gains today, we haven't seen enough strength to suggest this is anything other than a temporary correction.  We'd need to see rates recapture one of the three eighths of a percentage point they've recently lost before getting our hopes up. 

Loan Originator Perspective


The benchmark 10 year treasury note is still unable to set new lows from the recent trading.   I feel you have more to risk than to gain by floating right now.  So I continue to favor locking if closing within 30 days.   Always remember, rates are quick to rise, but very slow to move lower.  -Victor Burek, Churchill Mortgage

Bond markets were flat today, a welcome respite from our huge recent losses.  While rates didn't rise, they didn't fall either, and it's far too early to call an end to the rising rate trend.  I see little to be gained by floating, and the potential for more larger losses.  The trend is NOT our friend, I'm still locking early. -Ted Rood, Senior Originator

For people who were "caught with their pants down" due to the abrupt and aggressive spike in rates post election results, I am closely monitoring the 2.25-2.32 range on the 10 YR treasury as my personal stop loss.  Unless yields rise into that range, I would wait and see if we can build positive momentum.  On the other side, a break below 2.18 would warrant strong lock considerations. 

For NEW applications, locking in at origination is important, as rates very well may trend higher.  Heading into a heavy holiday schedule (Thanksgiving, Hanukkah, and Christmas), a 45 day lock would be the recommended period.  For loans that were ill-prepared for the recent move higher, patience and discipline around the recent technical levels is the only bet, otherwise, lock in and close, move on with your life.   -Gus Floropoulos, VP, The Federal Savings Bank

Today's Best-Execution Rates

  • 30YR FIXED - 4.0%
  • FHA/VA - 3.75%
  • 15 YEAR FIXED - 3.25%
  • 5 YEAR ARMS -  2.75 - 3.25% depending on the lender

Ongoing Lock/Float Considerations

  • Rates have generally been trending higher since hitting all-time lows in early July, and exploded higher following the presidential election
  • Clearly-defined uptrends provide higher-than-average motivation to lock, especially when the pace of rising rates accelerates quickly
  • Risk-takers can try to time the dips in rates that may occur during that broader uptrend, but the reward for good timing generally isn't worth the risk in these situations
     
  • We'd need to see a sustained push back toward lower rates (something that lasts more than 1-3 days) before anything less than a cautious, lock-biased approach makes sense for all but the most risk-tolerant borrowers.
     
  • As always, please keep in mind that the rates discussed generally refer to what we've termed 'best-execution(that is, the most frequently quoted, conforming, conventional 30yr fixed rate for top tier borrowers, based not only on the outright price, but also 'bang-for-the-buck.'  Generally speaking, our best-execution rate tends to connote no origination or discount points--though this can vary--and tends to predict Freddie Mac's weekly survey with high accuracy.  It's safe to assume that our best-ex rate is the more timely and accurate of the two due to Freddie's once-a-week polling method). 
                                            

Product
TodayYesterdayChangeLowHigh
30 Yr FRM4.00%4.02%-0.023.34%4.11%
15 Yr FRM3.25%3.26%-0.012.69%3.30%
FHA 30 Year Fixed3.75%3.75%--3.15%3.75%
Jumbo 30 Year Fixed4.08%4.09%-0.013.41%4.10%
5/1 Yr ARM2.99%2.97%+0.022.80%3.10%
Updated: 11/16/16 4:50 PM


Mortgage Rates Finally Catch a Break
Nov 16 2016, 4:40PM


Mortgage rates finally caught a break today, moving somewhat lower after hitting the highest levels of the year yesterday afternoon.  In fact, several lenders moved rates even higher to start the day today, due to weakness in bond markets this morning.  As the day progressed, bond markets found their footing, and many lenders offered mid-day improvements on rate sheets (aka positive reprices).
  
While the reprices brought today's average effective rate below yesterday's, we're still dealing with 4.0% as the most prevalently-quoted conventional 30yr fixed rate on top tier scenarios.  Most borrowers would only see improvements in the form of slightly lower upfront costs.  Relative to last Monday, most borrowers would be seeing rates that are 0.375 - 0.5% higher this week.  If you're just getting caught up with the massive mortgage rate drama of the past week, here are the relevant recaps:

From a strategy standpoint, while it's nice to have made some gains today, we haven't seen enough strength to suggest this is anything other than a temporary correction.  We'd need to see rates recapture one of the three eighths of a percentage point they've recently lost before getting our hopes up. 

Loan Originator Perspective


The benchmark 10 year treasury note is still unable to set new lows from the recent trading.   I feel you have more to risk than to gain by floating right now.  So I continue to favor locking if closing within 30 days.   Always remember, rates are quick to rise, but very slow to move lower.  -Victor Burek, Churchill Mortgage

Bond markets were flat today, a welcome respite from our huge recent losses.  While rates didn't rise, they didn't fall either, and it's far too early to call an end to the rising rate trend.  I see little to be gained by floating, and the potential for more larger losses.  The trend is NOT our friend, I'm still locking early. -Ted Rood, Senior Originator

For people who were "caught with their pants down" due to the abrupt and aggressive spike in rates post election results, I am closely monitoring the 2.25-2.32 range on the 10 YR treasury as my personal stop loss.  Unless yields rise into that range, I would wait and see if we can build positive momentum.  On the other side, a break below 2.18 would warrant strong lock considerations. 

For NEW applications, locking in at origination is important, as rates very well may trend higher.  Heading into a heavy holiday schedule (Thanksgiving, Hanukkah, and Christmas), a 45 day lock would be the recommended period.  For loans that were ill-prepared for the recent move higher, patience and discipline around the recent technical levels is the only bet, otherwise, lock in and close, move on with your life.   -Gus Floropoulos, VP, The Federal Savings Bank

Today's Best-Execution Rates

  • 30YR FIXED - 4.0%
  • FHA/VA - 3.75%
  • 15 YEAR FIXED - 3.25%
  • 5 YEAR ARMS -  2.75 - 3.25% depending on the lender

Ongoing Lock/Float Considerations

  • Rates have generally been trending higher since hitting all-time lows in early July, and exploded higher following the presidential election
  • Clearly-defined uptrends provide higher-than-average motivation to lock, especially when the pace of rising rates accelerates quickly
  • Risk-takers can try to time the dips in rates that may occur during that broader uptrend, but the reward for good timing generally isn't worth the risk in these situations
     
  • We'd need to see a sustained push back toward lower rates (something that lasts more than 1-3 days) before anything less than a cautious, lock-biased approach makes sense for all but the most risk-tolerant borrowers.
     
  • As always, please keep in mind that the rates discussed generally refer to what we've termed 'best-execution(that is, the most frequently quoted, conforming, conventional 30yr fixed rate for top tier borrowers, based not only on the outright price, but also 'bang-for-the-buck.'  Generally speaking, our best-execution rate tends to connote no origination or discount points--though this can vary--and tends to predict Freddie Mac's weekly survey with high accuracy.  It's safe to assume that our best-ex rate is the more timely and accurate of the two due to Freddie's once-a-week polling method). 
Today's  Best Real Estate Humor
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Tom Furino
furtree@msn.com
619-944-8749