30-Year Mortgage Rates Make New Lows, But Look Ready To Spike

No doubt you've heard that mortgage rates are low. They're lower than they've ever been in history.  The news is everywhere.

Just check out some of these headlines from the last 24 hours:

• Mortgage rates set new lows for the 6th straight week (Reuters)
• Mortgage rates fall again; 30-year fixed at 4.54% (Wall Street Journal)
• Mortgage rates hit another low : 4.54% (NPR)

Fixed mortgage rates are now down more than 1/2 percent from the start of the year, and 3/4 percent from just 1 year ago. The drop has dramatically improved home affordability for home buyers in Temecula while creating refinance opportunities for existing homeowners.

From a payment perspective, a conforming, 30-year fixed rate mortgage is now cheaper by $41.94 per month per $100,000 borrowed versus July 2009.

A homeowner with a $300,000 mortgage, therefore, is saving $45,295.20 over 30 years.

Low mortgage rates rarely last long and rates appear to have troughed. After a big downhill between April and July, they're now flat. This could mean rates have finished falling, or that they're gearing up for another drop lower. Either way, if you haven't talked to your real estate agent about home affordability, or your loan officer about refinancing, it may be time to make that call.

If today's market marks the end of low rates, rates are expected to rise quickly.

Falling Consumer Confidence Helps Drag Mortgage Rates Lower. For Now.

For the second consecutive month, U.S. consumer confidence is plunging. July's official reading is its lowest since July of last year and the figures run in stark contrast to just two months ago, when the index touched a multi-year high.

According to The Conference Board, July's figures are reflective of a more pessimistic consumer; one concerned about "business conditions and the labor market".

Falling confidence numbers are presumed to be poor for the economy. For homeowner and home buyers in San Diego , however, they can create opportunity.  Low confidence can influence the mortgage market in a positive manner, driving mortgage rates down.

Mortgage rates are already at their lowest levels of all-time.

The link between consumer confidence and everyday mortgage rates roots in consumer spending.

Consumer spending accounts for close to 70% of the overall U.S. economy so, the thought goes that, a less confident consumer is less likely to spend money, thereby retarding economic growth. This harms the stock markets and drives cash to bonds, including mortgage-backed bonds.

More bond demand leads bond prices to rise which, in turn, pushes mortgage rates lower.

The other side of lagging confidence is that Americans may be less likely to take new financial risks when they're feeling unsure, including buying a new home. This can then drag on the housing market, negatively impacting home prices across Navada.

Falling home values can help buyers, harm sellers, and stymie would-be refinancers.

It's tough to predict how consumer confidence data will work its way through the economy, but in the near-term, it appears to be helping mortgage rates stay low. If you're floating a mortgage rate with your lender, or contemplating a refinance, the time may be right to lock in a rate.

Low rates can't last forever.

Case-Shiller Shows Home Price Improvement In 95% Of Cities

Standard & Poors released its Case-Shiller Index Tuesday. On a seasonally-adjusted basis, between April and May 2010, home prices rose in 19 of Case-Shiller's 20 tracked markets.  It's the second straight month of strong Case-Shiller findings.

Also, May's numbers are a mirror-image of February's. In February, 19 of 20 markets lost value.

In its press release, the Case-Shiller staff resisted calling May's data proof of a housing recovery, noting that home values remain flat as compared to October of last year. However, there are some noteworthy numbers in the Case-Shiller report.

1. 13 of the 20 tracked cities are showing home price improvement year-over-year
2. Foreclosure posterchlld San Diego has now shown 13 straight months of improvement
3. San Diego, San Francisco and Minneapolis are showing double-digit annual growth

These are all good signs for the housing market, but the Case-Shiller Index is not without its flaws. Most notably, the data is limited to just 20 cities nationwide -- and they're not even the 20 largest ones. 

Cities like Houston, Philadelphia, and San Jose are excluded from Case-Shiller, while cities like Tampa (#54) are not.

Another Case-Shiller flaw is that it reports on a 2-month delay.

Therefore, today is several days from the start of August but we're now reflecting on data from May. Given the speed at which the San Diego real estate market can change, May's data is almost ancient.  Today's values may be higher or lower than what Case-Shiller reports.

For home buyers, reports like the Case-Shiller Index may not be useful in making a "Buy or Not Buy" decision, but can aid in watching longer-term trends in housing.  For real-time data, talk to a real estate agent with access to local figures instead.

New Homes Sales Gain in June, But Gains Are Relative

After a down month in May, the sales of newly-built homes appears back on track.

As published by the Census Bureau, June's New Home Sales report showed:

1. A 24 percent sales volume increase from the month prior
2. A 2-month drop in the supply of newly-built home

There are now just 210,000 new homes for sale nationwide.

June's data is a major improvement over May, but it's possible that the true "new home market" may be softer than the statistics suggest.  This is for several reasons.

First, we're comparing June's sales data to the worst month in New Home Sales history.

In May, sales of new homes totaled just 267,000 units nationwide. That's one-quarter fewer sales than in the previous worst month in New Home Sales history. May's sales levels were awful by any measure but June's improvement to 330,000 units remains second-worst sales levels ever posted.

Second, although much improved, June's new home supply of 7.6 months is elevated versus the historical norm near 6.0 months.  The last year has averaged 7.7 months.

For buyers of new homes in Encinitas , this combination of low sales volume and higher-than-normal inventory may be a positive.  It's the main reason why homebuilder confidence is reeling and the downturn has opened some doors for big discounts and deals. Free upgrades and closing cost credits can make a well-priced home even more attractive.

Plus, with mortgage rates at all-time lows and expected to rise, home affordability is may never be better.

How To Prevent Mercury Poisoning With CFL Light Bulbs

According to the EPA, if every household in America replaced one "traditional" bulb with an energy-saving compact fluorescent lamp (CFL) light bulb, it would result in $700 million in energy cost savings each year, plus a greenhouse gas savings equivalent to that of 800,000 automobiles.

They're expensive, but CFL bulbs tend to pay for themselves in less a year, and often last for several. It's no wonder they're so popular with homeowners in Temecula.  But, CFLs also come with health risks.

 

Namely, CFL bulbs contain mercury -- an average of 4 milligrams per bulb.

 

The mere presence of mercury doesn't make CFLs dangerous. It just means that you should exercise care when handling them, and take certain precautions when disposing of them.

The Environment Protection Agency offers some tips:

1. Screw/unscrew the bulb from the base and not the bulb to prevent breakage
2. Never force a CFL bulb into a light socket
3. When the bulb burns out, bring it to one of 3,106 recycling centers

The EPA website also give guidance for dealing with broken bulbs. Among the recommendations: Don’t wash mercury-covered clothing to prevent contaminating other clothing, too, and don't vacuum up the poison, either. There are special handling instructions to prevent poisoning yourself and others in your household.

The EPA's CFL safety PDF is 3 pages long and can be viewed on its Web site.

CFLs provide long-term energy and environment cost savings. And, with some common sense care, their risks to your health can be minimized.

World's Most Craziest Jobs

This guy has a dangerous job. Someone has to do it and he does it well.

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Top 5 Most Expensive Houses in the World

1. The Villa La Leopolda in Nice, France: $ 398,350,000

Formerly the home of Bill Gates, but now belonging to really rather rich
Roman Abramovich, the Villa La Leopolda in Nice, France would set you back
roughly £250,000,000 ($ 398,350,000 ). Its 10 acres of lush, garden-filled
grounds require an astounding 50 gardeners to look after it along with the
best home insurance that money can buy.

2. Ira Rennert Mansion : $180,000,000.

The billionaire found of the Renco Group, Ira Rennert, owns a place in
Sagaponack, New York, and at 63 acres of grounds, is considered by many to
be the largest residential compound in the whole of America. The house
itself has 29 bedrooms, 39 bathrooms, as well as the usual gigantic dining
room, sport courts and bowling alley and contents insurance to cover it
all. The property is valued at roughly $170,000,000-180,000,000.

3. Updown Court in Surrey, UK : $140,000,000

With neighbors like Elton John and the Queen of England, Updown Court in
Surrey, UK is going to be a rather decadent household. Launched with a
price of £70,000,000 (roughly $140,000,000) and still unsold as of May
this year. Containing 24 bedrooms, each with a marble en-suite bathroom,
and an underground garage, the property is estimated to cost around
£250,000 ($500,000) a month to run, not to mention the cost of the house
insurance! Since this property located in the UK, the homeowner need to
know about Conveyancing information under the UK law. In the UK, London is
considered one of the most expensive places to own a house besides Surrey
(and of course Chelsea). There recommended property portals designed to
help you search for the top most expensive houses in London, UK and enable
you to determine whether or not the flats for sale in London are an
accommodating alternative to the traditional house buy. There's a rumor
that this house is up for sale. The new homeowner needed to make sure that
He can afford this house, rather than have to Stop Repossession because of
high debt.

4. Donald Trump Palace : $125,000,000

Donald Trump owns this 18-bedroom waterfront palace, which is listed as
costing $125,000,000. Situated in Florida, Trump says it's location in
Palm Beach is "the richest community in the world" and it doesn't seem
like he's joking! We also doubt that he's one to settle for cheap building
insurance, either.

5. Three Ponds : $75,000,000

In Bridgehampton, New York, there sits a $75,000,000 estate that has its
own golf course! Called "Three Ponds" due to the fact that it has, er,
three ponds (each stocks with an ample supply of fish, which are hopefully
included in the home insurance), and the expansive grounds also house 14
different gardens, each with their own theme!

World Interesting Facts
Interesting Facts Around the World

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