A Quick Note

What's in store for the housing market in 2012? According to an article published by U.S. News & World Report last week, pieces for a housing rebound this year are beginning to fall into place.

Obstacles remain of course, but the report suggests that home prices will bottom out nationally after a final decline of 4 or 5 percent in some markets. (Contrast that with San Francisco, where prices appreciated in many neighborhoods last year and are likely to gain further in 2012.)

U.S. News predicts more foreclosures, continued low interest rates and rising rents.The report suggests that all of this will contribute to an increase in home sales across the nation.

Market Update for San Francisco*
12/19/2011 - 12/26/2011

Mortgage Update

Pending sales of existing U.S. homes surged to a 1-1/2 year high in November, offering more signs of a tentative housing recovery. In addition, factory activity continued to grow in the U.S. Midwest in December, as purchasing managers reported rising prices and employment, even though production eased slightly. Recent economic data, including reports on housing, have been largely positive, contributing to gains over the past month and the view that economic growth is picking up steam.

Freddie Mac is forecasting that U.S. economic growth would likely climb to 2.5 percent over 2012 and that mortgage rates would stay at record lows. "While the headwinds remain strong going into 2012, there are indications the economy and the housing market are gaining ground, albeit slowly," Frank Nothaft, VP and chief economist with Freddie, said in a statement. The company said that mortgage rates would stay low, with 4 percent for the 30-year fixed agency conforming rate mortgage leading the way recently.

This information is provided by Tim Wood at Terra Mortgage Banking/Opes Advisers, a mortgage bank. Tim can be reached at (415) 464-1374, by email TWood@TerraMB.com or through his web site http://www.tinyurl.com/Tim-Wood-Loans.

Mortgage Rates

Mortgage Rates as of  Wednesday, January 4, 2012
Conforming Loan Rates
30 Year Fixed	4.090%	« calculate mortgage at this rate
15 Year Fixed	3.393%	« calculate mortgage at this rate
10/1 Year ARM	3.559%	« calculate mortgage at this rate
Jumbo Loan Rates
30 Year Fixed	4.468%	« calculate mortgage at this rate
15 Year Fixed	3.863%	« calculate mortgage at this rate
10/1 Year ARM	3.995%	« calculate mortgage at this rate
Rates change daily and vary by product. They are provided here to give you a general sense of current average California rates. Your rate will vary and depends on credit and other factors. Rates are not published on weekends. Source: Topix.com