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San Diego Real Estate Veterans

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September 2016

The Markets in a Minute

The Markets in a Minute

September 15, 2016

The Economy

Opinions vary on the likelihood of a Fed policy rate increase at next week’s meeting. Markets are volatile as traders prepare for what they think will happen. Central bank economic stimulus overseas has been helping U.S. bond yields remain low but is now waning. Higher bond yields could cause mortgage rates to increase. A strong jobs report and firming inflation pressured rates and fueled volatility this week. On the flip side, retail sales slumped.

Housing News

According to CoreLogic, 548,000 homeowners regained equity in Q2. That brings the percentage of homes in the U.S. with positive equity to almost 93%. Foreclosure inventory continues to dwindle. CoreLogic reports that foreclosure inventory declined 29.1% in July, and was down 16.5% year-over-year. Mortgage applications for purchase transactions were up 9%, signaling a stronger fall market ahead. Although up slightly, mortgage rates are still near record lows.

San Diego County Rentals

Average rent was $1,743 a month in San Diego County at the start of September, increasing 8.4 percent in a year. The vacancy rate dropped to 2.17 percent, its lowest level in roughly five years.

Rent increased 7.7 percent from March, when the average was $1,618 a month. The rise is largely attributed to lack of new housing and apartments. Only two new major projects entered the market in the past six months, adding 370 apartments.

Blame for lack of housing has been placed rising prices on California environmental laws, lack of political leadership and the hesitancy of city and county government to approve new housing. There is no expected change in foreseeable future.

In early September, the average rent for a studio was $1,383; $1,533 for a one-bedroom; $1,821 for a two-bedroom; $2,257 for a three-bedroom; and $3,043 for a four-bedroom. The highest rent in the county is on the coast in North County, where the average rent runs $2,152 a month. The cheapest is in East County, at $1,422 a month. Vacancy rates for apartments in East County are at only 1 percent. Out of 18,622 apartments, just 275 were empty at the start of September.

San Diego Community Spotlight

Clairemont50 new Single Family Home listings in August 2016 and 14 new Condo listings in 2016.

JRThrasherContact

J.R. Thrasher
Realtor®
CalBRE# 01888955

SanDiegoRealEstateVeterans
Keller Williams Realty

7050 Friars Rd. Suite 100
San Diego, CA 92108
Direct: 619-929-0105
Office: 619-814-7500

www.SanDiegoRealEstateVeterans.com
Serving our military,VETERANS and civilians faithfully.

6 Reasons to use your VA Benefits

houseWhen it comes to finding a home for you and your family, getting the best possible mortgage sets you up for success. For those who are eligible, a VA (Veteran’s Administration) mortgage loan offers a number of enticing benefits that may make sense for your home purchase. Here are some of the biggest advantages of VA loans:

1. No money down required. Coming up with a large down payment is a huge barrier for many home buyers. For a $200,000 home, a standard 20 percent down payment is $40,000. That is a lot of money for most families to save up. With a VA loan, so long as the purchase price doesn’t exceed the appraised value of the home, no down payment is required.

2. No private mortgage insurance (PMI) required. With traditional loans, if you require financing for more than 80 percent of a home’s appraised value, you’ll most likely be required to pay PMI monthly, which protects the lender if you default on the loan. This can cost many borrowers an extra $100 to $200 a month though some lenders have options that do not have a PMI requirement. VA loans, on the other hand, do not require PMI, even when receiving a loan for the entire appraised value of a house.

3. Strict limits on closing costs. Closing costs for traditional mortgage loans can add up quickly, but with a VA loan, strict limits are imposed on what closing costs are allowed.

4. Lower interest rates. Because VA mortgages are partially guaranteed by the VA, lenders are encouraged to offer more favorable terms than conventional loans. This can often translate into lower interest rates than those for conventional mortgages.

5. Potentially lower minimum credit score to qualify. The VA doesn’t set a minimum credit score requirement, although many VA lenders have guidelines for minimum credit scores for qualification. Your lender may look past your credit score to see your unique financial situation to help get you the best VA loan possible.

6. No prepayment penalty. Traditional mortgages may penalize you for paying off your loan early, but with a VA loan, there is no penalty for eliminating your mortgage ahead of schedule. If you’re able and decide that you want to pay off your mortgage, you’re not forced to keep unnecessary debt.

Ready to get started on your path to home ownership? Start with getting pre-approved for a mortgage that fits your needs and goals.

Article provided by Navy Federal Credit Union. When shopping for a VA home loan consult your local REALTOR for information on which lenders provide the best and quickest service for you and your family. Your working REALTOR has experience with multiple lenders and can provide you with a wealth of information on the lenders loan servicing time and their clients overall satisfaction with the lenders.

JRThrasherContact

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