American Pacific Mortgage

American Pacific Mortgage

Monday, January 18, 2010

Rate Update and Remedies for Post-Holiday Blues

Rates improved nicely by the end of last week. A new 30 year fixed rate loan, up to $729,000, is going to be somewhere south of 5%, down to 4.75% if your loan amount is below $417,000.

Five year fixed rates are still at or below 4% for loans up to $729,000. The CPI figures that came out at the end of the week were lower than expected, helping keep interest rates down, and the government spending spree for mortgage backed securities is also providing assistance.

However, keep in mind these rates won’t last since we have repeatedly been reminded that the mortgage-back securities buying program will end by the end of the first quarter this year. In addition, as soon as inflation raises its ugly head it will bode ill for interest rates.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

My prescription for the end-of-the-holidays blues is great food, wine and music.

On a recent Sunday afternoon we drove to downtown San Clemente and strolled the length of Del Mar for some window shopping. Yes, we bought some touristy gift-cards too! We headed for the San Clemente Wine Company to check it out after reading a few reviews in the local newspaper. This wine shop offers a comfortable tasting area in the back of the store, where for $15 you can taste a flight of 6 wines. We had cheese, crackers and some great reds…Pinot Noirs, Cabs, and Syrahs.

The SC Wine company specializes in moderately-priced wines from California, Australia and New Zealand. The owners are currently visiting in New Zealand to locate new wines for the shop. They regularly host vintners for special tasting events, and are open 7 days a week.

Next on my “fight the blues” list is Iva Lee’s restaurant, on Camino Capistrano in San Clemente. Offering outrageously good food and music, the theme is southern-style N’awlins all the way. Gumbo, catfish, fried green tomatoes, sweet potato fries and the like are all on the menu. Blues is the obvious music of choice, and we were lucky to catch the Blue Machine Band. They play regularly on Thursdays at Iva Lee’s but also appear in other Orange county venues.

If you love Blues and Cajun cooking, you can’t miss Iva Lee’s.
The restaurant was busy for a Thursday night, so call for a reservation. After it cleared out a bit, we took advantage and danced in the dining room near our table, and in the bar. Weekend crowds might make that a bit difficult however.

Last, but not least, we dined with friends at Bistango, an old favorite in Irvine near the airport. We were celebrating three birthdays, and as always the food was outstanding and the dancing was a blast. Bistango has live music every night, with a real live dance floor. We appreciated not only the cuisine, but the art as well, which is inspiring (at least inspiring for artists like the one I live with.) Definitely my special occasion choice!

I think I have beaten the blues. Now if only the hurricane will stop so I can go outside again!

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