Latest Mortgage News and Updates

Fed Funds Rate at 1%

The Federal Reserve continues to take drastic steps in reaction to the current economic situation. Banks have been trading preferred stock with the treasury for billions in cash which the treasury hopes will increase liquidity and ultimately ease lending for the consumer. The Federal Reserve also dropped the benchmark lending rate to 1% on October 29th. The rate is now equal to the lowest it has been since June 25th 2003 when a huge refinance boom was spurred on by low rates and easy lending.

Fed Rate History: http://www.federalreserve.gov/fomc/fundsrate.htm

Stock for Cash: http://www.bloomberg.com/apps/news?pid=20601087&sid=a1ysz59UAZnM&refer=home

What does all of this mean to you?

Lending may not be as easy as it used to but the good news is if you have a mortgage that you got into in 2003 that is adjusting soon, your rate very likely may not go up. In fact depending on your mortgage your rate may still be lower than current rates. While most people don't want to stay in an adjustable rate mortgage or loan that is only fixed for a year at a time, at least it gives a chance to refinance into a longer term fixed loan.

On the positive side this market is ripe with opportunities. You know what they say "Buy low, sell high"! Well if you are looking at purchasing whether it be a new home or business, now could be an incredible opportunity if you have the money. Many business savvy customers are pulling out cash now in preparation to buy up investments at pennies on the dollar.

In this market Cash is King! There is a reason the rich get richer and the poor get poorer in these markets. So we can all complain about the losses in this economic downturn or you can put your resources to use and take advantage of what is happening!

Bull markets don't go up forever and likewise bear markets don't go down forever.

Show me the money!

Their are plenty of half price deals out there. I had a bank owned home in good condition that went on the market two weeks ago in Altadena for $249k. We had 10 offers in the first two days. On an FHA loan with only 3% down ($7,470) your payment including taxes is $1,917 . Once you factor in an estimated tax savings of $464 a month (based on a 35% tax bracket/ $15,925 yearly mortgage interest write off) that gives you an effective payment of $1,453. Not bad for a property that just over two years ago was estimated at $520k according to Zillow. Now this market may be starting to look a little bit more appealing.

I have lists of these properties before they even hit the market. So if you would like me to keep you up to date just shoot me an e-mail and I will put you on a special list. Just remember you must have an approval letter from me in order to submit an offer on any of these. I handle all of the REO's/Bank owned properties in the area.

Special Programs and Pricing

-We have a "Super Credit" program for non-conforming loans (729k+). Rates are currently in the low 6% range on this program which allows some of the best rates we have seen in a long time on the larger loan amounts. ( 720 fico and <75%>
-High Balance conforming 417k to 729k still in effect until Dec 31st. Take advantage of lower conforming rates at higher loan amounts.
- 100% financing on VA loans for anyone who was in the military or a qualifying reservist.
-FHA Only 3% down required through the end of the year.

Now is the time to take advantage. Don't wait until its to late, many programs are only good through the end of the year. Have your friends, family members or borrowers give me a call for a pre-approval or evaluation at no cost to them.

As always feel free to contact me anytime!

Best Regards,

Steven Lazerus

Estates Pasadena Development

This is a brand new development featuring luxurious 5 bedroom homes in Pasadena. If you are looking for new construction or would like the chance to customize your home, Estates Pasadena could be a great choice. Since these homes are still under construction, the builders can take into account buyers’ preferences on certain features of the homes. When I drove by today, I saw that the roofers were working on the roofs on some of the homes, so construction is definitely still progressing.

Developers in Pasadena as well as the rest of the country have been greatly affected by the credit crisis. Their business is built on easy access to credit to fund their purchases and construction projects which can stretch for years. In the current economic environment credit has tightened up. I have heard from local developers that the combination of slowed sales of homes and stricter lending has squeezed them like never before. And even outside Southern California one local government supervisor confirmed that developers have all but shut down their projects in his area, as very few plans were submitted to his department for review.

So if new construction real estate is appealing to you, it’s a great time to buy. Estates Pasadena is one of the beautiful new developments in our area, and we can set up an appointment for you to view the model home or any other Pasadena real estate that’s right for you.

To find the current availability for the Estates Pasadena development, search the Pasadena MLS for Cambridge Court or Avondale Road. The development is located at the intersection of Sierra Madre and Sierra Madre Villa in Pasadena. If you'd like to receive updates on Pasadena luxury homes, you can sign up for our Hot List, and we'll send info directly to your inbox.

Pasadena Townhouse - New Development in Pasadena

Villa Verona is a new development of townhouses in Pasadena. These brand new mediterranean style townhouses are priced as low as $490,000! If you are looking for a Pasadena townhouse or Pasadena condo, these units deserve a look.
For a free detailed report of these townhouses using the Pasadena MLS or to schedule a showing, email a Pasadena Real Estate Agent.

Townhouse Features:

• 2-3 bedrooms, 1..75-2.75 baths
• 1472-1590 sq. ft.
• 2 car garage
• Courtyard
• Gated community with Intercom System
• Italian Cabinets - "Scavolini Sax"
• Bosch Stainless Kitchen Appliances
• Designer wood floor and marble tile entry
• detailed interior design with recessed lightings
• crown moldings and dual pane windows
• $197/mo association fee

Pasadena New Development - Catalina Villas

There is a new development in Pasadena on the Southeast corner of the Catalina and Villa intersection. Or is it a new development? The Catalina Villas were built over a year ago and have been on the market ever since their completion. Right now there are at least 4 units that have still not sold. The price of these units has dropped nearly $100,000 over the past year! Currently they are priced in the high 300,000's and lower 400,000's, dependent on square footage and floor plan.

After visiting these condominiums I was very impressed. They offer a clean, gated condominium complex with creative floor plans that would be a great purchase for a first time homebuyer, student or investor. The only downside is that each unit is around 1000 sq. ft., but the floor plan makes the units feel bigger than they actually are.

For more information on this development email BeautifulPasadenaHomes.com

Local Market Statistics - September 2008

Pasadena Home Sales - This data was compiled using the Pasadena MLS.

_____________________September _____Year to Date

# of Units sold: _____________97___________ 733
Dollar Value: ___________$64,852,800____$551,646,322
Avg. List Price: ___________$693,681______ $783,625
Avg. Sold Price ___________$668,586______ $752,587
Avg. Market Time: __________99____________ 82
Avg. Square Feet: __________1696__________ 1755
Avg. Price/Square feet: _____$394___________$429
% of List Price: ____________96.38%________ 96.38%

Has Pasadena Real Estate Reached "the Bottom"?

The million dollar question right now is when will the bottom of the real estate market be? At what point will the decline in home values reach its lowest point and begin climbing again? In the minds of millions of buyers this is the most important question for their home search.

For Pasadena, CA real estate that time may be now. I’ve done some market analysis recently and discovered that median home prices have turned upward for the first time in over a year. The chart below shows the 90 day average price of homes for sale in Pasadena.

Even more interesting is the drop in inventory of active homes for sale that has happened in recent weeks for Pasadena. It’s basic capitalism that when supply drops and demand stays roughly the same that a price increase is soon to follow.

We’re keeping an eye on the market so we can provide the most current information to our clients so they can take full advantage of the great deals we find here in Pasadena.