Have you heard the news?! Interest rates are at an all time low! Following the Fed's announcement last week, the national average rate on a traditional 30 year fixed rate mortgage has inched even lower to record numbers.

Rates are estimated in the mid 3% range for 15-year loans and low 4% range for 30-year loans. A successful refinance will bring qualified homeowners immediate savings in the form of reduced monthly mortgage payments, but more importantly, larger savings over the remaining term of their loan.

On another note, Uncle Sam is about to take a first tentative step out of the mortgage business by lowering the size of home loans that the federal government will guarantee, and it's already hitting California neighborhoods with higher costs and bigger down payments.

Current conforming loan limits are scheduled to expire Friday, Sept. 30.  The maximum FHA, Fannie Mae, and Freddie Mac conforming loan limit will decline to $625,500 beginning Oct. 1, 2011, from the current $729,750 limit, though the majority of counties will fall far below the $625,500 maximum. 

The conforming loan limit determines the maximum size of a mortgage that FHA, Fannie Mae, and Freddie Mac government-sponsored enterprises (GSEs) can buy or guarantee.  Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan and require a higher down payment, increasing the monthly payment and negatively impacting housing affordability for California home buyers.

Most of the nation's biggest mortgage lenders have already stopped making loans at the old limits, concerned that they will not be able to get them off their books before the official Saturday October 1st deadline.

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Overall July prices and sales in San Diego were down, according to Dataquick. The county's real estate market has many nuances, so here's a breakdown of last month's numbers by sales type:

SINGLE-FAMILY RESALE: Resale houses typically make up the bulk of monthly total sales, in July's case: roughly 65%. This was the only subsection of the market that saw an increase in the number of units sold.

The median price, or the midpoint home value, was $360,000 in July, down 1.4 percent from June and down 5.3 percent from a year ago. Sales fell to 1,982 in July, down 9.7 percent from June but up 1.9 percent from one year ago.

RESALE CONDOS: July's median price was $205,000, down 6.8 percent month-over-month and down 8.5 percent year-over-year. Sales fell 10.6 percent from June and 5.1 percent from the same time last year.

NEW HOMES: New construction typically makes up the smallest slice of all transactions every month. Sales in July fell 31 percent from June, the largest month-over-month decline among the subsections. They were down from a year ago, too, falling 9 percent. The median price was $424,000, 15.5 percent lower than in June and 8.2 lower than the same time last year.

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Info on Buying a San Diego Short Sale Property

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SOLD FOR $399,000!

Largest model in Pell Place! This bright & spacious corner unit enjoys a large private balcony with north views and is conveniently located on the first level. Large walk-in closets & laundry room. Beautifully upgraded throughout. 2 side-by-side parking spaces. Extra storage room on balcony. Pell Place is located adjacent to top Carmel Valley Schools, Carmel Valley Community Park, Del Mar beaches, and convenient shopping, etc.

Tisha Carney, COASTAL SAN DIEGO PROPERTIES

Want more info on Short Sales? Check out MyEasyShortSale.com!

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Consumer confidence in San Diego County rose to its highest point in 16 months in January, as signs of economic stability increased. The following are the key findings include of the consumer confidence survey conducted by the Union-Tribune:

• 24 percent of respondents expect their income to be higher six months from now – a rise of 6 percentage points from December – and 63 percent expect it to remain the same, leaving less than 13 percent who expect a salary cut.
• 32 percent expect the future of San Diego business conditions to be better, up 7 points from December.
• 23 percent rate current San Diego business conditions as “good”, up nearly 7 points since December.
• 58 percent still think the current San Diego job market is bad, but that’s down by nearly 11 points from December.

Nationwide, optimism continued to build in February as well, according to the latest Thomson Reuters/University of Michigan consumer confidence survey. The survey reports that confidence rose from 74.2 in January to 77.5 in February, hitting its highest level since the dawn of the recession in January 2008.

Consumer confidence numbers are seen as leading indicators of economic growth, since they are seen as an indicator of how willing consumers might be to buy big-ticket items. But despite the improving mood, personal spending only increased 0.2 percent last month, as rising gas and fuel prices made consumers less likely to spend money on non-essential items.

Home Affordability in San Diego County at Record High – Tripled Since 2006!

Chief Economists Indicate San Diego Home Prices and Sales Will Inch Up In 2011

By Dean Calbreath of Union Tribune

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