Are Truckee Home Loan Rates Going Up?

This is what the folks at Wells Fargo have to say…

Last week, Congress was busy at work on negotiations to extend the Bush-era tax cuts. That news kept a lid on any improvement for Bonds and home loan rates, due to the prospect of an ever-increasing deficit.
And adding to the troubles for Bonds and home loan rates last week was news that inflation is growing in China… and growing fast. How does that impact us? Remember, it’s a global economy, so Bond prices all over the world worsen on news of inflation, which is bad for home loan rates.
So the big question is: Will home loan rates go back down?
Although rates are still near historic lows, they have been headed up… and indications are that those unbelievably low home loan rates may be behind us. In fact, there are only a few things that would bring back the lows that we saw in early November:

• If the tax cut package doesn’t get passed, it would be very bad news for the economy and Stock market – but it would help interest rates.

• If the Fed’s recent round of Quantitative Easing falls on its face and doesn’t meet its mission of creating inflation, boosting Stock prices, lowering unemployment and creating consumer demand – Bond prices could make some gains as the threat of deflation reemerges. But this is a long shot.

• If the financial problems in Europe worsen significantly – which would drive investors into the safe haven of the US Bond market – it could help Bond prices, but probably only modestly.

Realistically, the chances of these events happening are unlikely – and in the end, rates may see some brief and fleeting improvements, but many experts believe they will likely continue to creep up over time. And when you include the stimulative action of extending the present tax rates and adding further cuts, it’s tough to see Bonds or home loan rates improving much.

The good news is that home loan rates are still extremely attractive and are still near historic lows for now. If you or someone you know has been thinking about purchasing or refinancing a home, NOW is the time to call or email to get started.

Leisa Peterson is a Home Loan Mortgage consultant here in Truckee.  You can contact her at:

LEISA PETERSON
Mortgage Consultant
Construction Specialist
Wells Fargo Home Mortgage  |  11262 Donner Pass Rd  |  Truckee, CA  96161
MAC A0791-011

Tel (530) 582-6883  |  Toll-free (877) 852-4399  |  Cell (530) 448-1558  |  Fax (866) 762-9198

leisa.peterson@wellsfargo.com

https://www.wfhm.com/wfhm/leisa-peterson/

Climbing Out

We had a local Truckee home lender come to the office meeting this morning.  There was the usual, “rates are great”, “there’s never been a better time to buy”, “under-writing is a giant hassle” stuff that has been the norm for what seems like a couple of years now.  But, there are also some new loan products, and options for jumbo loans that have been non-existent for a while.  The rates are going to be volatile for the near term, as the Fed’s “quantitative easing” has the bond folks nervous and jerky about inflation.  As a Realtor, inflation is not the worst thing that can happen.  It’s generally good if you own a real estate, as values will increase.  Anecdotally, there are more than a handful of homes in Truckee currently under construction.  People are making work for themselves for the first time in a while in some of the “nuts and bolts” neighborhoods where new construction has been non-existent.  Underwriting, and the ability to qualify for home loans may not be easing any time soon.   But creative loan products, and people getting back to work are good indicators that we may be climbing out of this hole.

I’ll buy it.  It beats the alternative.

Photo:  Martin Garcia

Is It Safe to Jump In?

There is a lot of concern and conflicting information out there that surround Truckee short sales and foreclosures.  Part of that mis-info comes from the fact that it has been a moving target since the outset.  There really has been little rhyme or reason to process or the timing.  Each bank does it different, and the shear volume of these transactions that the banks are facing is daunting.  One question that buyers have been asking me is, “is it safe”.  There has been some talk out there in the media about folks who’ve lost their homes coming back on the banks for improperly foreclosing.  I’ve done a little research, and asked around, and here is what I’ve surmised.  If you purchase a home at the court house steps, you don’t have many guarantees about what liens, and issues may be “hiding” in the closet of your new home.  If you purchase a home in Truckee that is listed for sale, you will most certainly be purchasing title insurance.  Title insurance is not typically given much consideration, but more of a nebulous cost associated with buying a home.  But the reality is that a title company is insuring clear title to your purchase.  If there were to be an issue in the future, you have purchased insurance, guaranteeing your title to the home, or insuring compensation for the “cloud” if an unknown claim to your clear title were to surface.  I’ve also read that in the unlikely event of a bank making a mistake in filing and ultimately executing a foreclosure, that the courts would not void a sale and remove a new buyer from a home.  More likely, awarding damages from the bank to the foreclosed previous owner.  I’M NOT AN ATTORNEY.  You should contact one, and also question a reputable Title Company about what they insure, and if you are protected given your scenario.  If you’re insured, you should be safe.

http://www.dreamstime.com/free-stock-photo-lifebelt-rimagefree10504744-resi2810007

Making New Friends

On Saturday afternoon, my family and I left our home in Truckee, headed to Reno for my daughter’s end of the season softball party.  As we neared the Nevada State line, we found ourselves in a line of cars following the CHP down the freeway.  A big-rig had just gone over the side and down to the Truckee River, bursting in to flames.  The driver suffered only minor injuries, but a 25 acre blaze ensued, and we were parked for 2 and 1/2 hours.  No homes were threatened, as it was one of those rare days in the Truckee River Canyon when the wind was not howling.  While walking on the Interstate, we made some new friends, and actually saw a couple of old ones.  Very surreal to be walking on the Interstate.  That was a first for me.  Not how I would have “drawn-it up”, but somehow, it was not an unpleasant experience.  Here’s a couple of great shots my wife took:

Pacific Crest “Property” at 8949′

Last week my son got suspended from school for the first time.  Don’t Ask!  He got punched in the head and his reward…two days of forced vacation.  Not wanting him to camp in front of the tube all day on a Friday, I suggested a hike with my good friend Steve Davis from Heat-Tech of Truckee.  We chose one of the most amazing peaks in the Sierra, Tinker Knob.  Supposedly named after a fellow named Tinker in the mid-1800′s who had a schnoz.  Tinker Knob is a pretty easy spot to see from most of Truckee, and sits south of Interstate 80 by about 6 miles of legit hiking along the Pacific Crest Trail.  It’s about 1/2 way in between Donner Summit and Squaw Valley.  At just under 9000 feet, it feels like the top of the world.  Awesome views of Tahoe, and one of the rare places to get a full-on look  in to the Granite Chief Wilderness.  Breathtaking!  This was also one of those rare days with little wind.  This patch of snow can be seen from anywhere that you can see the east slope of the crest in Truckee.  Probably 200 feet long, and guessing still 10 feet deep in mid-September.  Can only imagine how deep it was in May.  The hillside here is much steeper than it looks.  As our company is named Pacific Crest Properties, I thought I’d share a look at the namesake.