Southborough, MA

Hollywood is coming to little Southborough!

According to an article in the MetroWest Daily News, the Pilgrim Congregational Church and the Old Burial Ground cemetary in Southborough, MA, will serve as part of the setting for a new comedy movie starring Adam Sandler and David Spade. Such excitement for this pretty New England town!

Negotiations are still under way, but it looks like the Southborough filming will take place in May. It is being produced by Lakefront Productions. Check the newspaper for exact filming dates and street closings in town.

Market Update:

Thanks to a Fed announcement that exceeded all expectations, it was a big week for mortgage markets. Mortgage rates ended the week down significantly, falling near the lows reached in January. The stock market and Treasury market also performed well during the week.

Following Wednesday's meeting, the Fed shocked investors with an aggressive expansion of its mortgage-backed securities (MBS) purchase program. In addition to the previously announced $500 billion in MBS purchases which began in January, the Fed will buy an additional $750 billion this year, bringing the total to $1.25 trillion. To put this in perspective, $1.25 trillion represents more than half of the estimated total mortgage issuance in 2009. Similar to its November announcement about the initial $500 billion MBS purchase program, the Fed achieved its desired reaction with an immediate decline in MBS yields.

The Fed has identified the stabilization of the financial system and the housing market as key elements of an economic recovery, and lower interest rates will help achieve these goals. Inflation data released during the week contained no reason for inflation to be a concern in the short-term. With yet another increase in government spending, though, investors will be keeping an eye out for signs of higher future inflation.

This week will kick off with monthly housing data. Existing Home Sales will be released on Monday and New Home Sales on Wednesday. Durable Orders, an important indicator of economic activity, will also be released that day. The final figures for fourth quarter 2008 Gross Domestic Product (GDP) will be revealed on Thursday. Personal Income and Consumer Sentiment are on the schedule for Friday. Large Treasury auctions will also be a factor during the week.

Jumbo Fixed Rates:

After being near 8% for most of 2008, you can now get a Jumbo 30-year Fixed in the low 6's. We have a 15-year Jumbo around 5%! Keep in mind this is for high-quality borrowers with >20% down payments and high credit scores.

2009 YTD thru February

While the number of homes sold was steady, the average sales price is up. The median price was is up quite a bit. The active price range in the market is in the under $500,000 range.

Southboro Market statistics

2007 vs 2008

While the number of homes sold was down dramatically, the average sales price held steady. The median price was down by 7% showing a slight leaning to the lower price ranges. The average days on market has improved by 13 days, which tells me sellers are more realistic about the original asking price and therefore the homes are selling faster.