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More good news for San Diego’s buyers and sellers

February 24th, 2009 Categories: Real Estate News, San Diego County Community News, San Diego county Real Estate News

SAN DIEGO– Well first we had the announcement regarding the first time home buyer’s tax credit. Today, FHA announced conforming loan limits are being moved back up. For a single family home, the new limit goes to $697,500 from the current limit of $546,250.

For buyers the direct impact of this change will be the savings on your interest rate. Currently the difference between conforming and non conforming is about 1.75% percent, based on rates provided by BankRate.com on 2/24/2009. Todays 30 year rate for conforming loans is 5.22 versus 6.91 for non conforming. Another impact will be the number of homes listed for sale to select from will increase as the payment on higher priced homes becomes more affordable. 

If these new values were in place today and we use today’s interest rates,  a simple interest payment on a $650,000 home at 5.22% would be approximately $2828.00 a month. If you applied today’s non-conforming rate of 6.92%, the payment would be approximately $3743 a month. That is a significant savings!!!

This savings for the buyer will have a direct impact on sellers also as your pool of buyers should increase significantly. In North County alone this would impact 657 listings today!!

Look for these changes to take effect in the next couple weeks.

This entry was posted on Tuesday, February 24th, 2009 at 6:42 am and is filed under Real Estate News, San Diego County Community News, San Diego county Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Comments »

San Diego’s private mortgage insurance dilema said:
[...] dilemma is that while there are so many positive things happening for home buyers right now such as low mortgage rates and the new tax credit, it does no good if you [...]
# 27 February 2009 at 2:22 pm
San Diego homeowners and housing market swimming in change said:
[...] Then there are two new tax credits that are applicable to Californians. One is the federal tax credit for first time buyers and the other is a California tax credit on new home purchases. Next, there [...]
# 6 March 2009 at 11:55 am

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