The Holidays are Over, and so are Record Low Rates!

Happy New Year! I hope everyone had a wonderful holiday season. Mine was filled with lots of fun as well as stress, but more about that later!

Interest rates have moved higher. The uptick in rates was very sudden in mid-November, and appears to be the result of improvement in the economy coupled with anticipated increasing inflation. There is also the spectre of higher yields demanded by investors to fund the burgeoning budget deficit.

Rates are up approximately 1/2% to 3/4% across the board…which is quite a jump. That said, we are still looking at fixed rates that should continue this year in the 4.25% to 5.25% range which are very low relative to the last 25+ years.
Home affordability index should continue to be high this year. Low home values coupled with rates in the low end of the range make this a great time to buy… and I encourage you, your children and friends to act in 2011.

This year may not be as attractive for refinancing...but much depends on your individual circumstances and current loan program/rate. If you are still on a 5/1 arm due to reset soon, now is the time to act.

We are still dealing with a massive number of foreclosures on the market with more to come at an accelerating pace. It is likely we’ll see more foreclosures in 2011 than 2010. In many markets, over one-third of all housing sales are distress sales, either houses that were in foreclosure, or short sales or some similar non-normal situation. This will continue to keep values down.




Can you identify the Waterfall?

My holidays started with a turkey feast in Ann Arbor with my daughter and her friends, followed by an intimate Thanksgiving Day at my mother’s home, and finally a third Turkey Fest Friday evening after Thanksgiving in Oceanside with Steve’s family. I was entirely turkeyed out!

December brought an extended visit from my daughter Katie, an engagement party for my son Drew and his fiancé Mary Grace, brief hospitalization of Steve in Colorado, (he’s fine now) a minor flood at my mother’s home, and finally Christmas!
We rang in the New Year with a group of old friends at the Balboa Yacht Club and had a blast, complete with slumber party afterwards.

Finally, the waterfall in Dana Point Harbor was flowing again with all the rains before and after Christmas, and I won a bet for a bottle of wine with a co-worker who took this picture of the falls and challenged me to identify it…not realizing I ride my bike in the harbor on a regular basis and have seen it myself during rainy periods!

I wish everyone a happy, healthy and prosperous 2011!