Mortgage rates fall, reversing 5-week streak

Asssociated Press--Rates on 30-year mortgages, which had been rising for five straight weeks, posted a decline this week as signals from the Federal Reserve eased worries about imminent rate increases.

Rates on 15-year fixed-rate mortgages dropped to 5.92 percent from 6.04 percent. The five-year adjustable-rate mortgage fell to 5.78 percent from 5.99 percent. The rate on a one-year adjustable-rate mortgage declined to 5.17 percent from 5.27 percent.

Rates don't include add-on fees known as points. The fee for 30-year, 15-year and one-year mortgages all averaged 0.6 point this week. The fee on five-year mortgages averaged 0.7 point.

Starbucks to Close 600 US Stores

SEATTLE – For a decade it appeared there was no such thing as too many Starbucks stores for U.S. coffee drinkers, whose willingness to buy its $4 lattes and dark drip brews rationalized a second green-and-white mermaid awning just down the street – and sometimes even a third.

But in a sign that those days are over, Starbucks announced yesterday it will close 600 company-operated stores in the next year, as the faltering U.S. economy hastened the pain caused by the company's own rapid expansion.

Starbucks did not say which stores will be closed, only that they are spread throughout the country. It did say that 70 percent of those slated for closure had opened after the start of 2006.

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Existing-Home Sales Edged Up in May

Some good news and bad news in national real estate news this week:

WASHINGTON - Sales of existing homes rose slightly in May, only the second increase in the past 10 months. Prices, however, kept plunging and analysts said the large number of unsold homes indicated the prolonged slump in housing was far from over.

The National Association of Realtors reported Thursday that sales of existing single-family homes and condominiums edged up by 2 percent to a seasonally adjusted annual rate of 4.99 million units in May. Even with the small gain, it was still 15.9 percent below the depressed levels of a year ago.

The median price of an existing home sold in May dropped to $208,600, 6.3 percent lower than a year ago. That is the point where half sell for more and half sell for less. It was the fifth biggest year-over-year price decline in records that go back to 1999.

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Median Home Prices Rise in Encinitas, La Jolla, and OB

This news from the San Diego Union-Tribune:

As median home prices continue to decline, it seems no community is immune to the slumping real estate market. And yet, during the last quarter a few coastal areas were able to eke out a healthy rate of price appreciation reminiscent of the housing boom.

Take Ocean Beach, which experienced a 14.4 percent year-over-year increase in the median price of a resale home during the first quarter of this year. By comparison, resale home prices for the entire county fell 21 percent during the same period, according to statistics released yesterday by DataQuick Information Systems.

In fact, prices declined for all but three of the county's 59 ZIP codes that recorded at least 20 sales between Jan. 1 and March 31 of this year and last.

Bucking the trend were Encinitas, La Jolla and Ocean Beach, which experienced price gains, while in Mission Beach and Pacific Beach, the median price remained relatively unchanged from last year to this.

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Forbes: San Diego Home Prices Set to Go Up

This bit from the latest issue of Forbes Magazine:

"San Diego's present conditions suggest that over the next half-year, prices may start to rise. That's because "there's usually a three- to six-month lag between when transactions go up and prices go up," says Jonathan Miller, president of Miller Samuel, a Manhattan real estate appraisal firm.

Another good sign for the coming year? Increased credit availability."

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Can it be true? Well, in the last week, we've made represented buyers making offers on 3 well-priced properties in Point Loma, Ocean Beach, and Rancho Penasquitos. These properties were *not* short-sales and were priced at current market conditions.

One property had NINE offers on it in 3 days, several over the asking price.
The second property had 3 offers within the value range in 4 days.
The third property? Had 4 offers in as many days, one over the asking price.

We weren't seeing this a couple of months ago! Our word to buyers: if you see a well-priced property that you're interested in, don't hestitate! The good ones are going fast.

Fed's Efforts Pay Off as Mortgage Rates Hit a 5-week Low

Rates on 30-year mortgages dropped below 6 percent this week for the first time in more than a month, reflecting aggressive efforts by the Federal Reserve to cut interest rates to protect the economy from a serious recession.

Freddie Mac, the mortgage company, reported yesterday that 30-year fixed-rate mortgages averaged 5.87 percent this week. That was down from 6.13 percent last week, and marked the first time that 30-year rates have fallen below the 6 percent level since the week of Feb. 14.

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Three Ways to Play the Downturn in Housing

I like this recent article from the San Diego Union-Tribune that outlines three smart and safe ways to play the downturn in the housing market. Take a moment to check it out.