Jason Bernabei, TriCastle Realty, "The Week in Review"

Jason Bernabei, TriCastle Realty

DEL MAR, October 31 2011   –  This was an interesting week on the National scene, as those of us who follow things closely are well aware. A little good news, a little bad news. But these days, any news that suggests any kind of growth, well, we’ll take it.  Last Wednesday, the Commerce Department announced that new home sales increased nationally by 5.7%, a seasonally adjusted annual rate of approximately 313,000 homes. This number is encouraging for builders, and the economy, in that it demonstrates a demand for first time home buyers. Ok, so that’s something.

Here’s something else. We all know the common perception that summertime is the peak buying season, where home sales will magically soar to new heights comparative the rest of the year. Well, in truth there are concrete reasons why this historically has been the case nationally. Kids are out of school and parents are perhaps inclined to make a jump before the new school year, the weather is warm in the parts of the country that are susceptible to harsh winter climates making building/moving more conducive, etc., etc. The so-called “peak buying season” is widely considered to occur between March and August. Yet nationally, here in 2011, home builders started projects in the month of September at the fastest pace in 17 months. Also, single family homes (SFRs) which represent nearly 70% of all homes built nationally, rose slightly from the preceding conventional “peak buying period.” Consider that factor for a second in this economy. THIS IS GOOD NEWS.

Here’s the not so hot news. Despite Fed. Chairman Bernanke’s August assurances at keeping mortgage rates down through 2013, already outside driving factors are moving rates in an upward direction. Mortgage backed securities (MBS) gained +5 points in one week’s time last week, yet rates went sideways by week’s end. After details surrounding the Greek/European debt bailout surfaced, there was immediate suffrage in the bond market, a key factor in rates trending upward.

So by week’s end, despite mortgage rates ending up on the higher side, the aforementioned positive strides of autumn afford us a little optimism. So I’m recommending ya’ll head out to the wonderful beaches we’re blessed with here in San Diego while the sun is still showing its face, but don’t look to lock your mortgage loan rate just yet.

Contact me Jason Bernabei of TriCastle Realty for any and all of your real estate needs in Carmel Valley and greater Del Mar, CA. Have a safe and Happy Halloween! Until next time...

Jay’s Outlook: Partly Sunny

Jason Bernabei, TriCastle Realty