American Pacific Mortgage

American Pacific Mortgage

Monday, September 12, 2022

THAT WAS FAST! Summer is officially over

No more white shoes, white pants or dresses, right?  Although we think that idea is a bit out of date today, at the Yacht Club white pants are not de rigueur after Labor Day.  Acting as the “Officers of the Deck” this week, we were asked to dress in formal yacht club attire which includes white or blue shirts, grey or khaki pants and navy jackets emblazoned with the Club Bullion.

Now, down to business:

Housing Market Correction

The experts are all weighing in on the likelihood of a “correction” to the housing market. Will prices come down?  There is a good deal of downward pressure on prices.  We may see a swing closer to a buyers’ market in the near future.  But remember, inventory is still extremely low.  No “crash” is in sight.  All the factors make it highly unlikely.


Up, down and sideways. Last week they hit an average of 6% which is the highest since 2008. However, a graph of average interest rates over the last 50 years in the US shows we are still quite near the low end.  It has been the sudden doubling of rates over the last 18 months that has buyers pushing the pause button.  Affordability has decreased with the rate rise.  Loan applications are down significantly which also means there is less competition out there for willing buyers.

Refinance activity particularly has slowed significantly, and is providing only 30% of current total loan volume.

Conforming Loan Limit Increases

The conforming loan limit, which includes both Fannie Mae and Freddie Mac loans, will rise effective January 1st but many lenders, including APM are already accepting rate locks for conforming loans up to a $715,000 loan amount. The actual new limit could be higher, but most agree that $715K is a safe bet.  What does this mean for borrowers?  Conforming loans are easier to qualify for!  Good news all the way around

Down Payment Assistance

No cash for a down payment?  No problem.  We have programs to assist new homebuyers with as little as $500 cash. With a combination of down payment assistance through various programs, coupled with seller credits to offset closing costs, there is almost no cash required to get into a home.  Of course there are income qualification requirements. 

Don't hesitate to reach out to us with questions!  Enjoy the transition to fall, we can't wait to cool off a bit.