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.

Generally speaking, when you make mortgage payments in advance, you can do one of two things. You can either apply extra payments to the principal, which will reduce interest costs over the life of the loan or you can apply extra payments against future payments which could shorten the life of the loan but not reduce the interest costs. Before you make extra payments, always make sure your loan doesn’t have an early payoff penalty. Keep in mind that every bank is different and before deciding to make extra payments determine what your specific bank’s rules are and how they affect your particular circumstances.  

According to the CVBT the recent foreclosure suspensions had little impact on the actual sales of foreclosed homes in California. However, the CEO of ForeclosureRadar speculates that the suspensions may lead to future scams claiming to overturn foreclosed properties. Overall foreclosure filings dropped slightly just after the announcement, but began picking up the following week. Despite this limited impact, filings were down but notices of sale were up in San Joaquin county.

Over the last year, the city of Oakdale’s police department has received 164 calls related to disturbances at vacant properties. Many of those calls were to report vandals or squatters but other common violations include trespassing, theft and drug dealing.  This problem is not unique to Oakdale, it is prevalent throughout the entire central valley real estate market wherever there are areas of concentrated vacant homes. These can be abandoned homes or halted development tracts. In an effort to help keep the local property values the best they can be it is important to be vigilant about reporting all suspicious activity. Otherwise if left alone, neighborhoods can quickly slip into obvious distress which can turn away potential homebuyers and drive down home prices.

CoreLogic reported that Stockton foreclosures rate was 4.41% this August, down from last year’s rate of 5.41%.

Stockton’s mortgage delinquency rate also decreased with 14.87% at 90 days or more delinquent down from 15.72% a year ago. This is all good news, but Stockton still struggles with a rate higher than the national foreclosure rate average of 3.20%.