Talking Points Bulletin

We know that we’ve reached the bottom of the housing market because bank-owned properties are tending to receive multiple offers and are selling like hotcakes. But, because the economy is still searching for its bottom, the Fed is more interested in the economic environment than with inflation. I hope this means a downward glidepath for interest rates during the remainder of the year and into 2009. But it didn’t happen last week.

FHA interest rates ticked upward last week, while conventional rates held steady. Where loan rates will begin the week of September 2.

This is just too wild!! Of course, the media loves to print stories that stir up negative emotion because it sells newspapers, but sometimes they go way overboard in the other direction, too:

Last week the OC Register headlined “Homebuying Slump Ends after 33 Months” just because we saw a 17% increase in the number of sales for Orange County in July. While I certainly think we are at the botom of the market cycle, there is no way sales of a single month show that the bad news is over. We are still 12-18 months away from a return of appreciation.

Interest rates remained steady last week, with FHA Jumbo 30-year fixed dropping at 6.625%. Where loan rates began the week of August 25.

The “experts” predicted a 1% decrease in the number of home sales for the month of June, but it actually rose 5.3% nationwide and 1.7% for the Western region. The SoCal housing recovery, while underway, seems to be lagging the rest of the country … at least for the moment.

Interest rates increased 1/8% for some programs over the previous week. Where loan rates will begin the week of August 11.

The Douglas Park is finally beginning construction!

The creation of twenty-two thousand high-paying jobs, right in the middle of Long Beach, will place substantial upward pressure on housing prices. Those folks need to live somewhere.

And it’s going to happen just as the housing market emerges from its slump. These two events acting together could create the kind of price growth we experienced in 2000-2005.

Interest rates eased back a bit last week, with FHA Jumbo 30-year fixed dropping 1/8% to 6.625%. Where loan rates will begin the week of August 4.