American Pacific Mortgage

American Pacific Mortgage

Wednesday, July 18, 2018

King Tides and Changing Tides!


We’ve been experiencing King Tides here in Southern California. But there also appears to be a sea change in the Real Estate markets.

Sales are slowing, and although home prices have continued to reach new highs in the coastal areas, properties are remaining on the market longer, and selling for less than list price in many cases. Mortgage applications are slowing.

What does all this mean? Interest rates are hovering between the mid-4’s to low 5’s depending on a host of factors. The increase in rates and home prices has caused our affordability index, based on median income levels, to plummet. Personally I think many buyers are just sitting on the fence, waiting for price reductions.

To give a specific example, earlier this year, a home buyer with a jumbo loan (over $453,150) with 20% down could get a 30 year fixed rate at 4.375%, and today that loan is at 5.125%.

If you have put off refinancing your home, don’t delay. Now is the time to lock in a fixed rate for that line of credit; pull out cash for a remodel or pay off high interest credit. Rates aren’t going to drop, but your home value may.


The biggest news is the arrival of my new grandson Edward James, born on June 26th. At 8 lb 9 oz. he is a big boy! EJ or Eddie makes no. five and counting for the tribe of grandchildren, three boys and two girls. WOW! Very exciting, and I can’t wait to get my assistant Katie back into action after maternity leave.

Katie is ready to originate her own loans and is fully licensed. She will be networking in the Tustin area, and in her neighborhood in Rossmoor. We are very excited for #thecardteam!

Steve and I took a quick trip to Cozumel in May for some scuba diving.
We stayed at Scuba Club Cozumel which is walking distance to the town of San Miguel. The dive operation was well-run and we met some interesting new friends. The best thing about our trip, other than great diving, was the plethora of great restaurants in town. There are many more choices than in the past with great seafood and authentic Yucatan dishes. We had some heavy rainstorms that passed through, but they were late afternoon/evening so didn’t affect our diving. One evening the street was entirely under water from curb to curb.

We spent a long weekend in Catalina with friends from our yacht club and had a blast.
Lunch at the Mt. Ada Inn, a dive trip one day, golf the next, cabanas at Descanso, boat parties and a lovely hotel room at the Metropole. The island ran out of water one day (long story) but we happily showered with bottled water. All in all, a great time! A dingy ride down to White’s cove was an adventure—sort of similar to Mr. Toad’s Wilde Ride—with a captain who prefers speed.

Next up:
Family trip to Rock Creek in the High Sierra with the entire tribe; all our kids (6) plus spouse/significant others; and five grandkids. We will have a fabulous time hiking, fishing and playing cards!

Remember we are here to assist with home financing! We do our best to make the process simple and understandable.