Market Update – New Opportunities

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Good Afternoon,

Last week, Mark Jamison, Senior Wealth Director of BNY Mellon in Menlo Park invited me to his office to listen to ACG present on the economy and what they believe will occur over the next 12 months. (To view the actual presentation, click here.)

In the panel, consisting of Senior Analyst from BNY, a VC, a partner from Fenwick and West and an M&A expert spoke. The consensus of the panel and most of the audience (myself included) agreed that q1 thru q3 of this year will most likely show us a recession and the cooling of the market where spending will decrease, stocks could go lower putting pressure on the fed to reduce tightening and start lowering rates. They also believed that the q4 and q1 of next year will be a soft landing with the economy improving as labor stays strong even with the recent layoffs from tech companies.

What Does this Mean to You?

Somewhere between now and next few quarters, values should go lower making it a great time to purchase. If you know someone thinking of selling, they should consider selling now rather than waiting. If you know someone buying, they should get preapproved and start actively looking as no one can time the market and know really when the bottom is. They all agreed that we would not see a repeat of 2008.

We just know that from last year in q3 (ish) to current, home values have been dropping and now were seeing some good opportunities for buyers. This is the main reason, our 2 to 1 Buy Down product makes sense for so many buyers and it provides a much lower payment for the next few years and helps sellers provide buyers an incentive to buy their property over other properties that don’t offer this perk. For more info on this new jumbo program, see my article published Friday.

If you have a client looking to buy, sell and trade down or trade up or look into refi options to pull cashout to buy or invest in the real estate or stock market, please refer them to me. Our rates now are phenomenal and we offer programs many other lenders don’t.

BTW…if you’d like to read my current weekly report, go “Rob’s Corner” on my home page at www.101Loan.com.

Have a great weekend!

Best Regards,

101 Loan

Senior Mortgage Advisor

650-465-8957 c 408-377-4123 o 408-608-1921 f

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01205444  NMLS #326829

101 Loan is an Associate of General Mortgage Capital Corporation

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 300 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Note: Interest rates and loan programs quoted are subject to change without notice or until locked and approved by lender.

The New Jumbo 2 to 1 Buydown…

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I have a new loan product that helps developers sell more property in today’s high-rate market.  It’s called 2 to 1 Jumbo Loan and no retail bank offers it.

The concept of this program works like this… Current jumbo rates are approximately 6%.  The buydown (which is priced a tad higher than current market), allows the borrower or seller (builder or developer) to buy down the rate by 2% year 1 so instead of the borrower paying 6.5%, they pay 4.5% for the first 12 months.  Year 2, the borrower pay’s 5.5%, then year 3, 6.5% for the remainder of the loan but will most likely refi in 1 to 2 years when rates go lower.

The cost of the buy down averages between $35k to $40k and put into an escrow account to cover the buydown over the life of the loan but is usually paid by the developer, builder or seller as a way to incent the buyer to purchase and close on the unit.  In return, they get the following:

  • On the price of $2m at 25% down, the P&I payment on the mortgage of $1.5m at 6.5% would be $9481/month.  At 4.5%, the payment would be $7600/month saving the buyer/borrower $1881/month year 1 for 12 months.
  • Year 2, the payment would be $8517/month saving $964/month over month 13 to month 24.
  • Over 2 years, that’s a saving of $34,140 over 2 years.

Note:  Payment above is P&I only and does not include property taxes and property insurance paid monthly.  Above based on a purchase with borrowers having a 780 mid fico and above.  Apr on 6.5% is 6.879.

This program will help more property be sold and we are the only lender in the US currently offering this program.  Let me know if you’d like to discuss this further.

Thanks.

Best Regards,

101 Loan

Senior Mortgage Advisor

www.101Loan.com

650-465-8957 c  408-377-4123 o  408-608-1921 f

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01205444  NMLS #326829

101 Loan is an Associate of General Mortgage Capital Corporation

 

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 300 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Note: Interest rates and loan programs quoted are subject to change without notice or until locked and approved by lender.

Lower Interest Rates & Payments in this Market?

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This is something relevant to the market that could help buyers and sellers in this competitive real estate space…

Lower Rates and Payments in this Market?  How?

By 101 Loan – 101 Loan LLC dtd 10/26/2022

I recently wrote this article (https://101loan.com/blog/2-1-buy-down-to-lower-rate-and-payment/) on 2 to 1 buy downs (or 3 to 2 to 1 buy downs) where a buyer purchasing real estate could have the seller credit points to temporarily buy down the buyers rate as an example:

Starting Rate is 6.5% (current for a 30 year fixed) as an example.  With a 2 to 1 buy down, the starting rate would be 4.5% for year 1 and then the next year, 5.5% and then the 3rd year until the end of the loan, 6.5%.  This would allow the buyer to get into the property with much lower payments the first 2 years with the idea of refinancing in 2 to 3 years when interest rates come down as analysts predict.

Here’s the Challenge…

These buy downs are only available for conforming loan amounts of $970,800 and less.  What does one do if the buyer is obtaining a jumbo loan which is higher in loan amount?  Also…what if the buyer wants a hybrid such as 7 year or 10 year fixed which is lower than a 30 year fixed in rate?

We have a Solution…

On a jumbo loan, you can still buy the rate down but instead of it dropping 1% or more in rate, if you choose a 7 year fixed (amortized over 30 years), the rate is .75 lower than a 30 year jumbo fixed (currently at 6.375% at 0 points) and is fixed for the next 7 years.  This gives the buyer, plenty of time for interest rates to drop; meanwhile the buyer gets to pay the lower payment for the next 7 years compared with the 30 year fixed with a significantly higher payment and rate.  Note: Rates are subject to change without notice and are only provided here for educational purposes.

“Most important” the Buyer can have the Seller cover the points/buydown to sell the house.  This is something more sellers are willing to do, to unload their property in a timely manner!

See the Examples of Different Price Points and Loan Amounts below where the Rate is Being Bought Down…

  • 1 Million in Price with 20% down payment = $800,000 loan amount – 7 year arm – 5.625% @ 2.25 point cost ($18,000) = $4605 mo/payment.
  • 2 Million in Price with 20% down payment = $1,600,000 loan amount – 7 year arm – 5.625% @ 2.25 point cost ($36,000) = $9211 mo/payment
  • 3 Million in Price with 20% down payment = $2,400,000 loan amount – 7 year arm – 5.625% @ 2.25 point cost ($54,000) = $13,816 mo/payment

Important Notes:  As a buyer, you have the seller pay for the 2.25 points as a condition of accepting your offer.  Those points lower your rate, lower your payment and lower your interest cost over time and are tax deductible to the buyer based on their tax bracket.

Attention Buyers:  In today’s market, with increased inventory and homes sitting on the market longer, you not only have more control in what you pay, but what the seller provides you credit wise so the payments are lower and more affordable.  Be sure to take advantage of the above.

Attention Sellers:  Now you have a tool you can provide potential buyers, something other sellers are not using.  Be sure to use the above so your listing is more competitive and sells quicker.

If you would like this priced out and would like to get preapproved, please let me know.  Thanks.

BTW…See our real estate and market report for what’s happening in the interest rate world right now.

Best Regards,

101 Loan

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   408-608-1921 f

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01205444  NMLS #326829

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

 

 

Want a Lower Payment and a Lower Rate Below Market…A 2-1 Buydown May be the Trick!

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Want a Lower Payment and a Lower Rate Below Market…A 2-1 Buydown May be the Trick!…(Read Below for More Info)

 

What is a 2-1 Buydown?

A Buydown temporarily reduces the mortgage payment for the borrower. This happens because the seller offers a credit that pays the difference between the full P&I payment and the reduced P&I payment. The seller only needs to provide the credit and the lender handles supplementing the payment. So, it’s a seller credit used in a different way!

Why would a seller want to give this credit to the buyer?

A Buydown is paid for by the seller instead of the traditional lowering of the sales price when a listing doesn’t sell.  This potentially attracts more buyers because they get a much lower rate and payment for the first 2 years.  It also provides a lower payment helps buyers ease into their new home given all the new expenses they may have.  It also allows them to refinance when rates drop.

This also allows the seller to maybe not have to lower the list price.  This keeps home values as high as possible!  Since this is also a cost to sell the property then the sellers potentially get a tax break by lowering any capital gains (of course sellers should always contact their tax advisor on this).

You can also have a situation where the list price is fine and the sellers don’t need to lower it or give a credit to the buyers.  So then the buyers can counter to increase the sales price to cover the buydown subsidy and then have the sellers give that buydown subsidy!  Sellers get the same net sales price and of course the buyers are getting a much lower payment on their first 2 years!  Of course to do this the property has to appraise for the higher purchase price.  The buyers have to have the extra couple thousand for the down payment because of the slightly higher purchase price in order for this scenario to work.

Basically this is the borrower “financing” their buydown with the higher purchase price in order to get the seller to give the credit to fund the buydown!

Here Is an Example for Educational Purposes Only:

Interest Rate is 6.50%       Loan Amount is $715,000

P&I at $715,000 with a rate of 6.50% is equal to $4519.29/month

If a Seller credits the buyer with a subsidy, this amount can be applied to the buydown and reduce the 1st, 2nd or 3rd year payment, depending on the subsidy amount.

Let’s say a seller agrees to supplement the payment difference for years one and two.

The first-year payment for the borrower would be a rate of 4.50%.  The second-year payment for the borrower would be a rate of 5.50%.  Years 3-30 would be the normal rate of 6.50%.

Year One@ 4.50% = $3622.80 – P&I/Month

Year Two@ 5.50% = $4059.69 – P&I/Month

  • Keep in mind that the borrower still has to qualify at the NOTE RATE and not the buydown rate so in this scenario the borrower qualifies at the note rate of 6.50%
  • In this scenario with the 1st year rate being 4.50% and the 2nd year rate at 5.50% then this means their average rate for the first 2 years is at 5.00% which is still 1.50% LOWER than the current market rate!!

Seller Subsidy:

The difference between the Normal Payment of $4519.29 and Yr. One of $3622.80 is $896.49/Month.

The difference between the Normal Payment of $4519.29 and Yr. Two of $4059.69 is $459.60/Month.

If the Seller offers a subsidy of $896.49 x 12 = $10,757.88 (for 1st year) plus $459.60 x 12 = $5515.20 (for 2nd year) they would offer the borrower a total subsidy of $16,273.08 which would pay for the payment difference the first two years.

This strategy helps a homebuyer ease into their house payment and frees up funds for other things that would have normally gone to a house payment. NOTE: Seller credit cannot exceed maximum seller contribution for program selected.

 

For More Info, please contact me.

Best Regards,

101 Loan

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   408-608-1921 f

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01205444  NMLS #326829

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Note: Interest rates and loan programs quoted are subject to change without notice or until locked and approved by lender.

Is Life Insurance Tax Deductible?

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*Article prepared by Northwestern Mutual with the cooperation of Chris Welton, Wealth Management Advisor for 101 Loan, 101 Loan LLC.*

By Carl Engelking, October 06, 2021

Life insurance can be an important part of your financial planning. With permanent life insurance, in addition to a guaranteed death benefit that is typically tax-free, your policy will build cash value that can accumulate over time in a tax-advantaged way.

Are life insurance premiums tax-deductible?

If you hopped on the internet for a quick answer to this question, we’ll save you some time: for the most part, no, they aren’t, but there is one exception (more on that in a moment).

Life insurance premiums are considered a personal expense, and therefore not tax deductible. From the perspective of the IRS, paying your life insurance premiums is like buying a car, a cell phone or any other product or service. There’s also no state or federal mandate that you purchase life insurance, unlike health insurance, so the government isn’t offering you a tax break in this case.

Although premiums aren’t tax deductible, there are several tax benefits of a life insurance policy.

Business-paid premiums may be tax-deductible

If you’re a business owner, you can deduct business-paid premiums for life insurance policies that are owned by company executives and employees, and the executive or employee reports the premium as income.

OK, so your premiums aren’t tax deductible, but Uncle Sam still offers several tax breaks for life insurance policies.

Permanent life insurance cash value may be tax-deferred

Permanent life insurance policies, for example, feature a cash accumulation component in addition to coverage for your entire life. Cash value in a life insurance policy grows over time, and taxes are deferred on the growth. Once your cash value has grown it can be used as collateral on a loan, to pay for college, a house or even your premium payments1. If you surrender your policy, your cash value will typically be tax free up to your “basis”, or the amount of money that reflects your total premium payments. Any amount above the basis is considered a gain and would be taxed as ordinary income. Whole life, variable life and universal life are some of the most common types of cash value life insurance.

Permanent life insurance dividends are typically tax-free

Generally, cash dividends2 received from a life insurance policy are also tax free and don’t need to be reported as income, so long as the amount doesn’t exceed the net premiums you’ve paid on the policy. That’s because dividends are considered a return of policy premiums – you paid too much, so you get your money back.

Another huge tax advantage: Proceeds from a life insurance death benefit are generally tax free. Your family will be protected from financial hardship, and that payout won’t be considered income. However, if it is paid over time and the insurance company adds interest, those interest payments will be taxable. A financial professional can discuss how life insurance, and the accompanying tax benefits, can fit into a long-term plan.

1Each method of utilizing your policy’s cash value has advantages and disadvantages and is subject to different tax consequences. Surrenders of, withdrawals from and loans against a policy will reduce the policy’s cash surrender value and death benefit and may also affect any dividends paid on the policy. As a general rule, surrenders and withdrawals are taxable to the extent they exceed the cost basis of the policy, while loans are not taxable when taken. Loans taken against a life insurance policy can have adverse effects if not managed properly. Policy loans and automatic premium loans, including any accrued interest, must be repaid in cash or from policy values upon policy termination or the death of the insured. Repayment of loans from policy values (other than death proceeds) can potentially trigger a significant tax liability, and there may be little or no cash value remaining in the policy to pay the tax. If loans equal or exceed the cash value, the policy will terminate if additional cash payments are not made. Policyowners should consult with their tax advisors about the potential impact of any surrenders, withdrawals or loans.

2The dividend scale and the underlying interest rates are reviewed annually and are subject to change. Future dividends are not guaranteed, although Northwestern Mutual has paid a dividend every year since 1872.

This publication is not intended as legal or tax advice. Financial Representatives do not give legal or tax advice. Taxpayers should seek advice based on their particular circumstances from an independent tax advisor.

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM) and its subsidiaries in Milwaukee, WI. Christopher Edward Welton is an Insurance Agent of NM.

 

Do You Want to Buy First and then Sell Later?  Bridge Financing May Be the Answer!

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Do You Want to Buy First and then Sell After ?  Bridge Financing May Be the Answer!

Bridge Financing or Collateral Based Financing is a form of financing that allows a buyer of property to buy first (and close) and then sell their existing property later.  This allows them to make the strongest offer possible in a seller’s market often times without a loan contingency.  Once they sell their property, they can pay down any debts they owe and pocket the remaining funds as applicable. 

There are several ways to accomplish this and I have included them below:

  • 1st Option – Obtain a Line of Credit on current property to pay cash or use the line for the down payment of the new property.
  • 2nd Option – Do a Cashout Refinance and use that cash for the down payment or outright purchase.
  • 3rd Option – Get a Mortgage on Both Properties using A Paper (loans with the lowest rates)) that provides the necessary money to pay “cash” for the purchase with a closing of 30 days or less.  Then once the exiting property is sold, the proceeds from that sale pay down purchase money loan leaving you with a loan based on your overall equity and loan you desire or qualify for.
  • 4th Option – Apply for a Mortgage on Both Properties using B Paper (loans with higher rates)) that provides the necessary money to pay “cash” for the purchase with a closing of 15 days or less.  Then once the exiting property is sold, the proceeds from that sale pay down purchase money loan leaving you with a loan based on your overall equity and loan you desire or qualify for.

Each of these have pro’s and cons.  In order to determine which one is best for you, please complete the following and I will provide , your client qualifies for and is in their best interest, it is best to have them complete the following at:

https://101loan.com/purchasing/

Any questions, please contact me.  Thanks.

Best Regards,

101 Loan

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   408-608-1921 f

101 Loan – 1601 S De Anza Blvd, Suite 260, Cupertino, CA 95014

CA DRE #01205444  NMLS #326829

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

 

 

Why Are So Many People Leaving the Bay Area and California?

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Moving???

Recently I heard a stat from a Realtor that 10% of the Bay Area’s population in the last 12 to 18 months, have left the Bay Area for other areas throughout CA and abroad.  They have left for the following reasons:

  • Less or no state taxes
  • Lower home prices
  • Lower cost of living
  • Crime and homeless population plaguing our streets.
  • Traffic and congestion
  • For less politics

In addition, because of Shelter in Place (SIP) and Work From Home (WFH) companies have allowed employees to “zoom” in and work from home and not necessarily locally.  Even, my staff an I have not been in the office since March of last year and were realizing, why even have an office any longer.  In addition, so many companies like Tesla and Oracle are moving allowing employees to live and work elsewhere.  We once saw Apple move to Texas but they quickly came back.  Let’s see if that happens again with Tesla and all the other companies considering fleeing the state or Bay Area.

Lastly, I published a video on this subject with my good friend Cherie Schaller.  Cherie is a top producing agent for Sotheby’s in the Rocklin, CA area that is seeing this trend more often:

https://www.youtube.com/watch?v=lXPx33Cio2U&feature=youtu.be

If you are considering moving to to Rocklin, Roseville or surrounding areas where real estate is a fraction of the cost here. please contact Cherie at:

https://www.cherieschaller.com/

For more info on relocating out of the Bay Area or determining your purchase power, please go to https://101loan.com/purchasing-start/ or contact me at:

Best Regards,

101 Loan

Senior Mortgage Advisor

www.101Loan.com    hello@101loan.com

408-377-4123 o  650-465-8957 c

101 Loan LLC – 1601 S De Anza Blvd, Suite 260, Cupertino, CA 95014

CA DRE #01205444  NMLS #326829

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Rob’s Market Report…The Good, the Bad, and the Ugly

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Hope the week is treating you well! 

For us in lending, it’s a world wind!  Never in 30 years have I worked so many hours per week with such concentration for so long since going Shelter In Place on March 17.  We had a short stay on SIP but that didn’t last long with SIP Chapter 2 commencing, where COVID numbers rapidly increased as the state of California and other states throughout the US lifted social distancing rules.

While COVID has impacted un-employment its done little to nothing in the near term to the Dow Jones which closed at 26,828 today and interest rates have gone lower.  Definitely the lowest I have ever seen them in 30+ years of doing lending.

If you, your friends or family haven’t refinanced and have loans below $765k, have them contact us and we will happily quote them.  Most retail banks are taking 90+ days to close a refi while were still at 45 to 50 days from start to finish.  In addition, if your clients just want an idea of what’s available we can usually respond with a rate update within 24 hours whereas retail banks based on what my clients are saying, can sometimes take, weeks for a response.

Its as simple as completing the following questionnaire and forwarding back to me to run a rate search…See below:

Please complete the following refinance questionnaire or go here to complete online https://101loan.com/refinancing-start/.  Once completed, I will research loan options out of 50 lenders and provide a rate comparison for your review based on the best available rates and loan options.  Any questions at all, please contact me.  Thanks.

1)  Provide your property/mailing address, day and evening numbers.

2)  What is the estimated value of your property and is your dwelling permitted with the city?  In addition, is this property your owner occupied or investment property?   Lastly, is the property a house, townhouse or condo?

3)  What are the balance of your 1st Mortgage-      2nd Mortgage-       3rd Mortgage-

4)  What are the rates on your 1st Mortgage-      2nd Mortgage-       3rd Mortgage-

5)  What are the payments on your 1st Mortgage-      2nd Mortgage-       3rd Mortgage-

6)  Do you want cash out?  If so how much?

7)  How long do you plan on owning the property?

8)  Does your loan have a prepayment penalty?  If so, when does it expire?

9)  When did you purchase your home and for how much?

10) What is your annual, verifiable income and what is your estimated FICO score?

11) Which loan programs are you considering?  Fixed and/or Hybrid?

In closing, if you need help with any type of financing, please contact me.  See current market report at http://www.mmgweekly.com/w/index.html?SID=86df7dcfd896fcaf2674f757a2463eba.

BTW…if you missed my last video on Home Insurance, make sure you watch this.  A client of ours out of the area was just quoted over $10,000 on a 3000 sq ft house as they let their home insurance lapse and unfortunately for them, they are in a risky area “burn wise”.  https://101loan.com/market-update-and-insurance-update-fire-season-is-upon-us/

Best Regards,

101 Loan

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   408-608-1921 f

101 Loan – 1601 S De Anza Blvd, Suite 260, Cupertino, CA 95014

CA DRE #01205444  NMLS #326829

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

Note: Interest rates and loan programs quoted are subject to change without notice or until locked and approved by lender.

Unemployment Down in Bay Area and Real Estate Staying Strong…

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A Very Interesting Week for Real Estate, Unemployment and the Dow Jones!

This week, see why the economy is coming back strong. For more info, see https://youtu.be/7DaDcWhDUdg.

Home Values

Real Estate values continue to stay strong, with multiple offers as Shelter in Place has been modified.

Just this week, we pre-approved over twice as many borrowers as with previous weeks.  Many of my Realtors are reporting buyers coming off the fence and writing offers.  Housing inventory is finally up with Shelter in Place in Phase 2 allowing Realtors the ability to list property.  Inventory is now at 2.8 months but with over 7 Million people residing in the bay area, that isn’t much!  This is great news for sellers, but not so much for buyers where supply and demand are not equal.

Unemployment

Bay Area unemployment wasn’t as high, as some expected, compared to other areas throughout California.  Marin County came in at 11.1.  San Francisco County at 12.6, San Mateo County at 11.4 and Santa Clara County at 11.7.  What is also interesting is national unemployment dropped from 15.3 to 13.3%.  In just one month, over 2.5m people went back to work which is great news for the economy!

Local, National and Global Markets

The Dow closed today at 27,110 due to the following:

  1. Economic Optimism
  2. Overwhelming Policy Response
  3. Corona Virus Uncertainty Abating
  4. Global Yields Increasing

For more info on these, see my weekly report which can be found at www.101Loan.com under Rob’s Corner.

In Closing…Noah Manning with Perspective Realty in the North Bay and myself provided a summary on the above (and more) at https://youtu.be/7DaDcWhDUdg.   (I hope you enjoy it and if you like it, please leave your comments on the channel)

I hope you have a great weekend!

All the Best,

101 Loan

Senior Mortgage Advisor

408-377-4123 o  650-465-8957 c   hello@101loan.com

101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

101 Loan LLC – CA DRE #01205444  NMLS #326829

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.