American Pacific Mortgage

American Pacific Mortgage

Monday, April 8, 2024


Important Dates:

April 10th your Real Estate Taxes are due!  You will be penalized if you don’t pay them in a timely manner.  Online is easiest!

April 15th your income taxes are due.  Be sure to file an extension if you are not filing your returns on the 15th.

Rate and Market Updates

Well, The Fed is not cooperating with us on interest rates.  Why?  New job creation continues at a strong level, the largest since last May.  Basically, the economy is still strong and although inflation has reduced dramatically from the highs, not enough. 

As of Friday the 5th the published Freddie Mac average rate on a 30 year fixed rate mortgage (under 766K) is 6.8%.  But remember, this rate is affected by FICO score, Loan-to-Value, loan purpose and other factors. 

San Diego is leading the charge on home price gains with an 11.2% increase over the last 12 months.  Los Angeles and Orange County are up 8.6%.

With inventory continuing at a low level, bidding wars are picking up again.  The Millennials are back, representing nearly 40% of buyers.  And, average down payments hit an all-time high last year! 

Myth busting around the NAR lawsuit regarding agent commissions.

·         This is good news for buyersNO!.  Buyers cannot finance the commission for their agent in their loan.  They either need to pay out of pocket for that service, or go without an agent.

·         Why bother paying an agent to show me homes when I can check them out on Zillow?  Well, unless you are a real estate expert and intimately acquainted with the RPA (Residential Purchase Agreement) and all the attendant requisite disclosures, you are frankly incapable of adequately representing yourself.  There are 1000 things that can go wrong without an agent representing your best interests.

·         Ever hear of a pocket listing?  You won’t find that without an agent working on your behalf.  That is a listing that never hits the MLS.

·         Dual Agency is fine (The listing agent also represent the buyer) NO!  No agent can honestly and fairly represent both sides of a transaction and provide the best result for both.  Impossible.

·         Home prices will be lower since the seller is not paying for the buyer’s agent.  DOUBTFUL  Think again. If you are selling your home, are you going to offer less than true market value to be kind to the buyer?  Or, do you want the most $$ out of your home?

·         The seller can’t pay for my agent as a buyer.  WRONG.  Yes they can, but it may not be called out in the MLS as a commission to buyer’s agent.  However, the listing agent may note a seller concession for “closing costs” which can include the fee to the buyer’s agent.  Remember, everything is negotiable!

This situation is fraught with danger signs.  I anticipate many more lawsuits if dual agency becomes the norm.