Summertime Mortgage Update; Cayman Island Review and Fam News!

May arrived and departed with financial upset across Europe—which has returned rates to ever new record lows . Rates continue to hover in the high 2’s to the low 4’s depending, as always, on occupancy type, loan program, FICO score, property type, and amount of points and/or upfront costs either paid in cash or financed through escrow.

Even if you refinanced last year you may be eligible for a no point refinance that will provide a substantial annual savings. Purchase activity has picked up dramatically and we are seeing bidding wars erupt, with much lower inventory available than in the past few years. From March to May the inventories shrunk rather dramatically. Some report that there is still “hidden inventory” the banks are holding, and others report that except for the extremely depressed market areas, there is no hidden inventory at all and a return to normal market sales.

What does this all mean? Prices have most likely bottomed out along with rates. Great time to buy if you have the stomach for it. Refinance if you can grab a no point no cost refinance and save enough to make the pain and suffering worth it, without substantially extending your loan term. Now for the fun part…

Cayman Islands

Steve and I had a fabulous ten day trip to the Caymans to scuba dive. We flew through Miami to Grand Cayman and hopped a puddle jumper to Little Cayman Island. The resort was perfect and we dove every day at the Bloody Bay Wall which is famous in diving journals as one of the best. www.littlecayman.com Didn’t see many sharks (only nurse sharks) but saw lots of turtles, fish of all types and sizes, and had generally great diving on the trip. My only complaint was not enough dancing… but what can I say, I never get enough dancing. The food was varied and tasty, the sun was always out, weather hovered in the 80’s most of the time and fun was had by all. Little Cayman is essentially a desert island ten miles long and one mile wide and inhabited by many iguanas with right of way on the roads. Most of the guests and staff were from Europe, Iceland, Australia, Indo, S. America, and the Eastern US. No Californians. It is a REMOTE place. ‘Nough said.










DALLAS

We quickly returned to the real world by attending events in Dallas for the annual Art Fair, and the Dallas Museum of Art Gala Ball. These Dallas folks know how to party, AND love their art. The Art Fair was pretty amazing. My favorite exhibit was a Cernuda Arte out of Florida, specializing in Cuban artists that were bright and colorful. I also loved an exhibit of photographs made up of littler photos of celebs. Hard to explain but highly evocative. They were all pretty crazy. For instance, a photo of Michael Jackson made up of little photos of Elizabeth Taylor. You’d have to see it to believe it.



I’m loving Dallas and even have an office to work in when I visit Steve (Yes I work when I’m there.) but I was a little disturbed recently when I finished reading The Big Rich, about the rise and fall of Texas oil families. It was an eye-opener for me, and a very interesting period in the history of our country…

Family Wedding and other news!

My nephew was married over Memorial Weekend in Fresno . The whole family was there, minus only a few since my eldest had to work and HE AND MARY GRACE ARE EXPECTING! I will be a grandmother in December and can’t wait! Kenny spent a month here to visit for the wedding. It was the first time I’d seen him since Drew’s wedding last September, and we had a great visit. He is back in Berlin now to complete his Master’s program there and he should be finished in September.



In the meantime my nephew John married his Paige in a beautiful outdoor garden setting on May 27th. Great fun was had by all, and congrats to the happy couple! This photo is of my daughter Katie, her boyfriend Paul, my niece Page, and my son Kenny.

That’s all for now…more to come soon! Hoping for a warm summer at the beach, and off to Santa Barbara to camp, with kayak and bikes for the weekend-- at our favorite spot in the El Capitan campground.

A Sea Change in Rates & Spring Updates

Interest Rate Update

We have seen the bottom of the rate cycle, and it appears to be past us. Improving economic indicators coupled with increased stock market activity have pushed bond and mortgage rates higher the past week. Rates are still very attractive, but not quite at the 50 year record low mark. My recommendation is don’t wait if you have considered a refinance or purchase this year.

For 30 year fixed rate loans we are seeing 4.125% to 4.25% depending on loan size, for primary residence purchase or refinance. Remember that rates are all subject to FICO score, loan-to-value, property type and occupancy.

FHA and VA rates are still lower than those shown above, but as of the end of March FHA mortgage insurance premiums are rising AGAIN so time is of the essence.

SPRING IS HERE!

The last few months have been amazingly busy. I’ve been to Dallas with Steve to see his new pied-á-terre with a fabulous view of downtown. He stays there 3 to 4 days during the week, but continues to commute home for weekends. We had the opportunity to see the new musical version of Giant, based on the Edna Ferber novel about the transition in Texas from cattle ranching to the oil industry, with plenty of social commentary.

Business is booming at Museum Tower, his luxury condo development. The first models will be opening soon. I haven’t personally inspected the building since I don’t like open construction elevators…I’m holding out for the interior elevators to open up for my tour!

We ventured up to Napa Valley in late January for a surprise birthday event at Calistoga Ranch for a dear friend. We stayed “under cover” at their guest house—with sweeping views of the Valley—during the weekend, and feel like it is our special getaway! Of course we indulged in the best food and wines the valley has to offer, thanks to our hosts and friends.

Next, my mother stayed with us for six weeks while her master bathroom was being remodeled…and it is amazing! She is now dubbing it her “taj mahal” and it is complete with marble counter top and bench in the walk-in shower, and mosaic designs in the floor and shower tiles. A real showcase, and she’s selling tickets for entry. Any takers?

¡Viva México! I took a quick trip to Baja with my wonderful sister. We stayed with friends who live outside San José near El Puerto Cabo in a private community. Their home is fabulous with panoramic ocean views and amazing art pieces, and I felt like I was living the life of the rich and famous! We had massages en suite one day, dinner "in" with a professional chef, and took dune buggies down to a deserted beach on the East Cape called Shipwreck. One day we took their boat (ahem yacht) out for some sport fishing (no luck) but had a blast nonetheless. I returned home rested and with a slight sun rash. I think my high point of the visit was dinner at “the Farm,” a farm-to-table restaurant featuring organic produce grown on-site. The food, wine and music were all outstanding, and I can’t wait to return. Read about it at http://www.flora-farms.com/ or like them on Facebook. They also sell fresh produce, freshly baked items, and offer a interesting array of cocktails. It is a totally hip spot, located out of the way and hustle and bustle of Cabo San Lucas, and is frequented by many visitors as well as local ex-pats.

Next up: scuba diving on the Little Cayman Islands and then the Dallas Art Fair complete with Black Tie dinner event. Can’t wait!

Interest Rates below 4% - and Post-Holiday Updates

Interest rates are once again at record lows. Rates on most loan products are below 4% with NO POINTS and for shorter term loans (5-yr fixed) below 3%. For loans over $417,000 and up to $625,000 rates are slightly higher-- unless you are willing to use FHA financing.

FHA rates are even lower although they command a hefty monthly mortgage insurance premium. There are some exceptions to this rule though: for 15 year fixed loans below 80% loan-to value there is no MI – and loan amounts go up to $729,000. To give you an idea of interest rates a $700,000 loan amount at 80% LTV would command a rate of 3.25% with no monthly mortgage insurance and NO points, with a substantial credit to closing costs.

It's a great time to buy with prices so low!

Fall and Winter News

The last quarter of the year was amazingly busy for me with my eldest son’s wedding, coupled with near-record low rates and lots of business (good news), then Thanksgiving followed by two hospitalizations for my mother in December (bad news), and holiday activities.

First things first: the wedding was beautiful and wondrous. Photos can be viewed at http://greenweddingshoes.com/diy-bohemian-picnic-wedding-mary-grace-drew /

This was the first time I was together with my three children and all the extended family at one time in years. Pictured below are Kenny, MaryGrace, Drew and Katie. A great time was had by all!

After Thanksgiving my mother was ill, but has recovered after two times in hospital, the second for an entire week which was pretty stressful. She was home before Christmas and spent the holiday with me. She is recovering and we expect to have her with us for many years to come. The upside was I was able to spend a lot of quality time with my beautiful loving sister Katie. Here is mom at her Birthday dinner:

Steve and I celebrated New Year’s Eve with close friends at a dinner dance at the Balboa Yacht Club and danced all night – practically! They do put on a fabulous party.

Steve is still actively biking and I’m practicing my dance moves in jazz class and Zumba. Steve continues to commute to Dallas for his position as VP of Marketing and Sales of Museum Tower, and has obtained an apartment there, so I’ll be visiting him more often. The Tower has topped out and sales activity is brisk – for those of you in need of a high-rise downtown condo in the $800 PSF range! The property is located next door to the Dallas Museum of Art and the Nasher Sculpture garden in the Arts District. The performing arts venues and the Symphony Hall are just down the block.

Steve and I still enjoy sunsets from our own balcony --and also from Sunset’s Bar and Grill on the Beach below us in Capo Beach. If you haven’t visited it yet, put it on your list. http://sunsetsbar.com The owners have opened a new Sunset’s across from the pier in San Clemente, and word is out that they have taken over ownership of The Renaissance-Dana Point which is a big positive.

Next on our agenda is a week-end trip to Santa Barbara for Steve’s birthday, and then our big splurge, a diving trip to the Cayman Islands at the end of March. We can’t wait!

Rates, Industry Updates, and Dallas Arts District

The mortgage market closed up yesterday by 52 bps, which is a nice improvement on news of the increased danger in Japan and an overall weaker economic outlook. Bad economic news = good news for interest rates.

Mortgage rates are currently running in the 4.75% to 5.125% range for 30 year fixed rate loans up to $729,000, depending on loan size, FICO score, loan to value and occupancy. Rates are lower for shorter terms, i.e. five, seven, and 15 year fixed terms.

The “conforming jumbo” program allowing lower rates for loans over $417,000 and up to $729,000 is scheduled to sunset this September 30th. The government could extend the deadline again, but it is unlikely given the fact that the government wants to get out of the business of guaranteeing mortgages. This is also a precursor for a sunset of the 30 year fixed rate loan. So, if you want one, get it now while they are still available. Rates will rise for those loans over the current conforming limit of $417,000 and it is possible that the limit could drop due to average home values having dropped since the limit went into place.

Dallas and the Arts



I visited Dallas last week to attend various events revolving around the Dallas Art Fair. Steve has been handling the marketing of a high rise luxury home project called “Museum Tower” that is closely aligned with the arts--both fine and performing-- in downtown Dallas.




We toured individual galleries; attended the Gala preceding the opening of the Art Fair; attended a private event at the Trammel Crow Asian Art Museum; had a private tour in the Dallas Museum of Art with the curator of the Gustav Stickley exhibit (think Craftsman home movement); and attended an event for the unveiling of a new sculpture at the Nasher Sculpture Garden. Amazing works of art and sculpture were all around us! I was floored by the sight of many famous pieces I’ve only seen in books.

All of the above were attended by lots of waiters offering food, champagne, wines, etc. Also attending were lots of beautiful and fascinating people. All I could say was WOW.

Dallas seems to have more trendy restaurants and bars within walking distance of the “Uptown” area and the “arts district” than anywhere I’ve been. And, those people love to party! I even had a glass of wine on the terrace of the fabled Mansion on Turtle Creek.

I can’t wait to go back to visit, and will follow up with more in-depth reports on hotels, museums, restaurants, the Katy Trail, etc. I even found a great 24 Hour Fitness downtown with a great Zumba class on Saturday morning…what could be better?