New figures released by DataQuick Information Systems show 119 homes were sold in July, which despite a slow economy was nearly even with the 121 homes sold in June.

A total of 811 homes were sold in the Palm Springs Area during August.
That's on par with the 803 sold in July and up 2.7 percent from the same month last year.

The most expensive home sold in August was for $6.24 million in the 92260 zip code. August marked the lowest median price since January 2004, which helped boost July's housing sales.

The last time the price was this low was in January 2004, when it hit $267,000, according to historical information from DataQuick.

There are a significant number of other bargains are out there too, Such deals are helping drive down the median prices and boost the valley's first-time buyer affordability rates. The latest numbers show nearly half of valley residents could afford an entry-level home during the second quarter, a record rate for the desert.

To have direct access to these properties: http://www.FindMyDesertHome.com

If you are considering the sale of your home you can receive an e-mail analysis that will
give you a good indication of your homes current market value at http://www.DesertHouseValues.com.


Mortgage Market update!

"THERE IS NOTHING WRONG WITH CHANGE, IF IT IS IN THE RIGHT DIRECTION."
Winston Churchill. And the housing and mortgage industries experienced a great change in the right direction last week, as the Federal government moved to support Fannie Mae and Freddie Mac, causing Bonds and home loan rates to improve significantly and end the week around .24 percent better than where they began.

So why did the Federal government take action? Fannie Mae and Freddie Mac both have issued many Bonds which over time mature, and Fannie and Freddie need to pay back the principal on the maturing Bonds. The way they raise capital to pay these maturing Bonds is to issue new Bonds, which happens every month.
And as long as Fannie and Freddie can sell new Bonds this system works well.

But the problems in the mortgage industry have reduced investor appetite to purchase these Bonds. Without the ability to sell new Bonds, Fannie and Freddie are less able to meet the capital requirements to pay off the maturing Bonds. And if Fannie and Freddie were to default and become insolvent, the mortgage and housing industries...and homeowners across our nation... would face even more struggles than we are seeing now.

So the government's decision to back Fannie Mae and Freddie Mac is great news for homeowners, because it  ensures the continued liquidity of conforming loans nationwide and it ensures that buyers of this type of Bond have a safe investment going forward.

In other Bond-friendly news, we saw good news on the inflation front last week.
Overall Import Prices declined for the first time since December, thanks in part to the recent plunge in oil and gas prices. And Wholesale Prices, which help measure inflation, fell in August for the first time this year.

Overall, the good inflation news and the Fed's decision about Fannie and Freddie should lead to improving Bond prices and home loan rates in the long-term. With home loan rates at such low levels, it's a great time to review your mortgage situation and make sure you have the rate and program that best suits your current financial needs. I'd be glad to do a quick review for you - and your friends, family members, neighbors or coworkers as well - so just give me a call or email, I'll look forward to hearing from you!

 

NATIONAL OVERNIGHT AVERAGES   TODAY +/-

LAST WEEK
 
30 yr fixed mtg 5.78% 6.08%
15 yr fixed mtg 5.44% 5.62%
5/1 ARM 5.66% 5.78%
30 yr fixed jumbo mtg 6.98% 7.13%
5/1 jumbo ARM 6.24% 6.28%
 

 

 

1 Canadian dollar = 0.945475 U.S. dollars (08/08/2008)

1 Canadian dollar = 0.939232 U.S. dollars (09/15/2008)

 

 

 

Have a Great Week!

Rob Zwemmer