Thirty year mortgage rates have hit a six month high of 5.09% in response to an increase in treasury yields. This is a dramatic turnaround from where rates were only one month ago at 4.17%. This is sobering news for the housing market where despite the low interest rates buyer demand has been low since tax credits expired last April. This is particularly difficult in areas where the market is still greatly suffering such as the central valley. For more information regarding local central valley housing trends if you have any further questions about central valley real estate or investment opportunities feel free to call Pat Holkesvig & Your Home Team at 209.471.6516 or complete our Contact Us form.

Ten of the twenty most economically stressed counties in the nation are in California according to the Associated Press. San Joaquin ranks eighth followed by Stanislaus and Merced respectively. High foreclosure rates and continued unemployment contributed to the San Joaquin ranking. The ranking is based on statistics for the months of September and October.

Bank of America has restarted 16,000 foreclosures but it is still unknown if  judges will be satisfied with their assessment of the pending files. Other banks such as Wells Fargo and Chase have also attempted to restart their foreclosures.  The approach focuses primarily on vacant and rental homes in a few states including California. The courts should have an answer in the beginning of the new year.

Thirteen Central Valley residents were arrested related to a national investigation into investment fraud schemes. These schemes deliberately  targeted the investing public. Just the latest headline to remind us that fraud is prevalent in this difficult real estate market. One way to help avoid falling victim to such schemes is to work with a reputable real estate agent. You can determine any property’s value with a quick and easy Eppraisal and if you have any further questions about central valley real estate or investment opportunities feel free to call Pat Holkesvig & Your Home Team at 209.471.6516 or complete our Contact Us form.

As of December 13^th, Fannie Mae will allow buyers to use gifts and grants from nonprofit groups for their minimum 5% down payment. However since most lenders require a down payment of 10% or more, borrowers will still need to come up with the remaining balance. Fannie Mae will also impose tougher guidelines regarding debt-to-income ratios which will drop from 55% to 45%. They also announced that people with foreclosures will need to wait 7 years instead of 4 to obtain a Fannie Mae loan.