Jim and Elizabeth Stein

Higher mortgage interest rates go hand in hand with a growing economy. Even though rates are still hovering at historic lows, the home buyer should expect rates to begin climbing soon. Lawrence Yun, Chief Economist of the National Association of Realtors, believes that the 30 year fixed rates "may rise to 6 percent by December and to about 6.5 percent at the end of 2011."

As the Federal Reserve backs away from purchasing mortgage-backed securities, some consumers may think that action will directly lead to higher interest rates. However, it seems that more predictable economic factors are the likely reasons rates will begin to climb. Those macro-economic factors include the continuing high U.S. budget deficit and the recovering economy. Obviously, if the government can devise a plan to reduce its deficit over the long term, then rates may continue to hover around 5 percent. If not, then as the economy continues to grow it will push up the demand for credit and that will lead to raising rates.

In the meantime, mortgage interest rates will rise modestly, but such an increase comes directly from a growing economy. According to Mr. Yun, "that's a welcome sign"

If you have any questions concerning rates and the affect on your home sale or purchase, please call Team Stein at Keller Williams 310-774-3838 or on the web at James@TeamStein.com or Elizabeth@TeamStein.com

PACIFIC PALISADES BANK OWNED NEW CONSTRUCTION HOME COMING ON THE MARKET THIS WEEK!

Don't miss out! This home is new construction, beautifully done, bank owned and is coming to market later this week or early next week at an INCREDIBLY low price! This is your chance to own in Pacific Palisades, CA for a DEAL!

Contact us if you are interested in knowing more about this beautiful home. It won't last so be in touch quickly.

Elizabeth Stein - Mobile 310-902-4436 - email elizabeth@teamstein.com

James Stein - Mobile 310-991-4260 - email james@teamstein.com

PACIFIC PALISADES BANK OWNED NEW CONSTRUCTION HOME COMING ON THE MARKET THIS WEEK!

Don't miss out! This home is new construction, beautifully done, bank owned and is coming to market later this week or early next week at an INCREDIBLY low price! This is your chance to own in Pacific Palisades, CA for a DEAL!

Contact us if you are interested in knowing more about this beautiful home. It won't last so be in touch quickly.

Elizabeth Stein - Mobile 310-902-4436 - email elizabeth@teamstein.com

James Stein - Mobile 310-991-4260 - email james@teamstein.com

Market Performance - First Quarter 2010

Strong Fundamentals Suggest Pacific Palisades Market May Be On the Rise:

•- As of March, 2010, there were 178 single family homes listed for sale in the MLS for Pacific Palisades.

•- After the first quarter in 2010, 65 homes have sold in the Palisades and 31 homes were in escrow as of March 31, 2010..

•- Comparing March 2010 vs. March 2009, the number of homes for sale is down 35% while the number of homes sold is up a staggering 91%.

•- In Pacific Palisades, the median sale price for the month of March was $1,740,000. The average sales price for the month of March was $2,236,007 and the price per square foot in March was $697.

•- Interest rates are still close to all time lows (however rates are rising) helping make this an excellent time to purchase a property. Many lenders are seeing increased level of consumer confidence and are slowly lending again which is the key to our Real Estate recovery.

•- If we are at the bottom, you could reasonably be looking at a 15 to 20 appreciation over the next 5 years which if you consider the effect of leverage, if you put 45% down, you could be earning double that appreciation.

For more information about your specific area within Pacific Palisades, or if you would like a free home value estimate, please call us at 310-774-3838 or email us at elizabeth@teamstein.com or james@teamstein.com

Rates on 30-year home loans rise to 5.21 pct

Rates jump to highest level in 8 months as bond yields rise

Rates for 30-year home loans surged, rising to the highest level in eight months due to the improving economy and the end of a government push to keep rates low. The average rate on a 30-year fixed rate mortgage was 5.21 percent this week, up from 5.08 percent a week earlier. That's the highest since mid-August, when the average rate was 5.29 percent.

Rates had dropped to a record low of 4.71 percent in December, pushed down by a campaign by the Federal Reserve to reduce borrowing costs for consumers. The program ended last week, but the Fed left the door open to reviving the program if the economy weakens.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day, often tracking the interest rate paid on long-term Treasury bonds.

Treasury yields have climbed steadily in recent weeks because of weak demand. The government has had to offer a better interest rate to sell its bonds as investors shift toward stocks and riskier corporate debt.

The 10-year yield rose above 4 percent on Monday for the first time since June, but fell back to 3.85 percent on Thursday.

This week, the average rate on a 15-year fixed-rate mortgage was 4.52 percent, up from 4.39 percent last week. Rates on five-year, adjustable-rate mortgages averaged 4.25 percent, up from 4.1 percent a week earlier. The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for loans in Freddie Mac's survey averaged 0.6 of a point for 30-year, 15-year and 5-year loans.

All of this is happening while the Westside of Los Angeles is experiencing some very strong fundamentals including lower inventory, higher prices, many cases of multiple offers, and for the fifth straight month, a greater number of escrows being opened than the number of new listings to come to market. Sign of a turnaround? From what we are seeing here, there is sufficient evidence that this could very well be the case.

Thoughts or comments, please contact us --
Elizabeth and Jim Stein