Will Home Prices Rebound in 2011?

Posted by Stephen Gandel Thursday, December 30, 2010 at 1:30 pm

7 Comments • Related Topics: real estate 

A sign that may make a comeback in 2011 (Photo: Rick Wilking/Reuters)
A very successful hedge fund manager is making the case that housing prices may rebound sharply in 2011. He may be right.
The guy's name is Bill Ackman and his hedge fund is Pershing Square Capital, which had $3.5 billion under management in mid-2010. He has spent most of his career investing in consumer and retail businesses. But he made a killing in the late 2000s by spotting early problems in the credit markets and betting against bond insurer MBIA. Basically, he was early to recognize that Wall Street's system of credit default swaps was just a shell game--shift risk around, not eliminating it. Now Ackman says he is believes residential housing could be the next great investment. He has a presentation called, "So... How to Make a Fortune."
Nonetheless, Ackman's call that housing will rise has been met with a lot of skepticism. Market strategist Gary Shilling says housing prices will fall another 20%. Ezra Klein, the Washington Post's popular blogger, says Shilling is clear and comprehensive. Felix Salmon says Ackman's thesis is based on two points, both of which have major problems. Daryl Jones of Hedgeye on sister publication Fortune.com says Ackman and other housing bulls are wrong. In today's Journal, Peter Schiff, the strategist and failed Senate candidate, says housing prices are still too high. Lastly, Dr. Doom, and NYU professor,  Nouriel Roubini says housing is already double dipping and will continue.
So Ackman clearly has the contrarian point of view here. Here's why he could be right:
Much of the argument that the bears make is that housing prices still look inflated compared to where they were before the bubble. Schiff says housing prices should have risen 3.3% a year from 1998 to 2006, by historical averages. Instead, they rose just over 19%. So if housing prices are to revert to where they where before the bubble, they should fall another 20%. But Schiff's and other's emphasis on prices is misplaced. It's not prices that matter when deciding if an investment should go up our down. It's valuation. And by valuation housing looks attractive. One measure of that is the ratio of housing prices to average incomes. That ratio got as high as 3.6 during the boom. It now is about 2.7, according to the National Association of Realtors. And that is the 20-year average. So at the very least real estate prices don't look strikingly overvalued. Another measure is the NAR's Housing Affordability Index. The 20-year average for that measure is 133. The index now stands at 185, meaning housing is 40% cheaper than it has been on average for the past two decades.
Felix Salmon argues that the affordability ratio is misleading right now because mortgage interest rates are so low. When they begin to tick up, housing affordability will plummet. The problem with that logic is that interest rates tend to follow the economy. When the economy gets better, interest rates go up. But one of the key arguments for why the housing market might fall is because the economy will remain in a funk in 2011. There will continue to be a lot of people out of work in 2011. Well, if the economy remains in a funk, then interest rates won't rise. Simply put, you can't argue that high interest rates and high employment will conspire to bring down housing. Those things, generally, don't occur at the same time. If interest rates do rise, that will because more people have jobs. And when more people have jobs, more people buy houses. So if and when we do have rising mortgage rates, housing prices are likely to rise or already be rising again. Not the other way around.
Lastly, Roubini says that the robo-signing, document-losing mortgage mess will significantly hurt the housing market in 2011. I agree that the banks have severely screwed up the foreclosure process. But my story, where I went out and successfully found one of these so-called missing mortgages, proves that the mess is not as bad as Roubini and others think.
Here's my bottom line: Housing was certainly in a bubble. We know that now. And part of the reason was loose credit. And that's not coming back anytime soon. But as with all things that end in bubbles, there was a good reason for why housing prices should be worth more than they were as well. The US is generally a wealthier nation than it used to be. And studies show that as people get richer they spend not just more, but a larger portion of their wealth on housing--so more of more. Also, there are more of us. And land is fixed. Local laws make housing even more fixed. For those reasons housing prices deserved to go up, though obviously not as much as they did. So the idea that housing prices and valuations deserve to plunge to where they were before the bubble, or even far below as some argue, is silly. Like all things, housing prices will go up again, and like everything else, it will probably happen when few expect.

Read more: http://curiouscapitalist.blogs.time.com/2010/12/30/will-home-prices-rebound-in-2011/#ixzz19hgfRoOB

Rates As Of 12/8/2010

Conventional Rates:
Loan Amounts from $100,000 to $729,750 depending on County Loan Limits

30 Year FIXED @ 4.750%
30 Year FIXED @ 4.875% Stimulus Pricing for Loan Amounts from $417,001 to $729,750"20 Year FIXED @ 4.750%
15 Year FIXED @ 4.000%
10 Year FIXED @ 4.000%
  5 Year ARM  @ 3.250%

FHA & VA Rates:

Loan Amounts from $100,000 to $729,750 depending on County Loan Limits

30 Year FIXED @ 4.500%
30 Year FIXED @ 4.750% "Stimulus Pricing for Loan Amounts from $417,001 to $729,750"

30 Year FIXED @ 5.000% "Streamline Refinance"
15 Year FIXED @ 4.000%

  5 Year ARM  @ 3.125%

JUMBO Rates:

Loan Amounts from $417,001 to $2,000,000
 
30 Year FIXED @ 5.250%
  5 Year ARM  @ 4.250%

***Rates are with no points, PAR pricing and based on current market conditions, basic qualifying standards and underwriting guideline criteria.  Interest rates and guideline criteria are subject to change without notice based on market conditions.

Basic Qualifying Standards & Underwriting Guideline Criteria

 

 

 

Conventional & JUMBO Loans:

Interest rates shown above can be used for all owner occupied purchase or refinance transactions. Minimum qualifications are a 640 credit score and above for Conventional loans and 720 credit score and above for JUMBO Loans. No Bankruptcy's or Foreclosure's within the last 5 years. A 12 month rental or mortgage history with no late payments required. Verified income and assets known as "Full Doc" loan programs only. Property must be owner occupied. For 2nd Homes and Non-Owner Occupied property's certain restrictions and rate adjustments do apply. Loan to Value (L.T.V.) and Debt to Income (D.T.I.) ratio restrictions and rate adjustments do apply.


FHA & VA Loans:
Interest rates shown above can be used for all owner occupied purchase or refinance transactions. Minimum qualifications are a 640 credit score and above. No Bankruptcy's within the last 3 years and no Foreclosure's within the last 5 years. A 12 month rental or mortgage history with no late payments required. Verified income and assets known as "Full Doc" loan programs only. Property must be owner occupied. 2nd Homes or Non-Owner Occupied property's are NOT allowed. Loan to Value (L.T.V.) and Debt to Income (D.T.I.) ratio restrictions and rate adjustments do apply. 

Rates are for informational purposes only.  Please contact your lender directly for confirmation of current rates and loan pre-qualification. I'm happy to make a lender or broker referral should you need one.

  rates shown below are with NO POINTS, PAR pricing based on current marketing conditions, basic qualifying standards and underwriting guideline criteria

rates shown below are with NO POINTS, PAR pricing based on current marketing conditions, basic qualifying standards and underwriting guideline criteria 

rates shown below are with NO POINTS, PAR pricing based on current marketing conditions, basic qualifying standards and underwriting guideline criteria 

Prudential California Realty - Westside Market Overview

As the nation counts its blessings this
Thanksgiving, homeowners, buyers and sellers
have much to be thankful for. Recent news for
the housing market is positive – from record
low mortgage interest rates to rising sales.
The Federal Reserve held overnight bank
interest rates steady in October. Lower U.S.
Treasury yields followed, hitting lows not seen
since January 2009.
Mortgage interest rates, which mimic bond
yields, fell to all-time lows in mid-October,
according to the weekly Freddie Mac survey.
Benchmark 30-year fixed rate mortgages for
borrowers with good credit have stayed under
5% for 23 consecutive weeks. The last time
these rates reached 4.19% was in April 1951.
Such low interest rates are stimulating sales.
The National Association of REALTORS®
(NAR) and the Commerce Department
reported gains in existing and new home sales
since August 2010.
Existing home sales rose 7.6% in August, with
home prices up 0.8% year-over-year. New
home construction rose 10.5% from July, and
more building permits were issued.
To put that news in perspective, housing starts
bottomed in April 2009, and have improved
nearly 25% since the trough — although they
still remain 74% below the peak set in January
2006. Single-family housing starts are up 11
percent, yet down 78% from the peak.
Pending sales, or contracts signed for purchase
of existing homes, also rose in August by 4.3%,
following a 4.5% rise in July.
In other words, the bottom appears to have
been passed, but significant improvement in
average and median sales prices is likely to be
very slow, largely due to continuing pressure
from distressed homes.
The foreclosure moratorium
Ally Financial (formerly known as GMAC
Mortgage), Bank of America, JP Morgan Chase
and other banks stopped foreclosure seizures in
early October. Distressed homes, those in some
stage of foreclosure or short sale, represented
34 percent of sales transactions in August
2010, up 2% from July 2010.
The moratorium is certain to have three
immediate short term effects: lower housing
inventories for sale, reluctance on the part of
buyers to pursue foreclosures, and quick action
by banks to resolve the problem. But this move
appears only to be a delay of the inevitable.
Foreclosures will be reprocessed, potentially
causing a deluge of properties to enter the
market later on this year.
Home sellers have the most to gain from the
moratorium. Foreclosed homes can sell for as
much as 27% off list price and lower neighboring
home values by 1% or more, according to a
recent study by MIT and Harvard researchers.
With approximately 2.5 million homes in some
stage of foreclosure in 2010, neighbors’ home
prices suffer, each losing about $7,217 in value,
according to 2009 estimates from the Center
for Responsible Lending.
According to RealtyTrac, foreclosures accounted
for 43% of all transactions in California during
Q-2, 2010, but the moratorium could have a
short term effect on prices, says the research
firm’s vice president, Rick Sharga. “Right now,
what we’re talking about are paperwork issues
that are largely procedural in nature, and have
almost no bearing on the ultimate disposition
of a foreclosure,” he said in a recent interview.
Homebuyers may be reluctant to pursue
foreclosed properties due to delays and
potential problems obtaining clear title due to
poor paperwork. That could motivate lenders
even more to work through resolutions as
quickly as possible.
Bank of America is already proceeding with
foreclosures that passed reviews, and we suspect
the other banks will follow shortly.
Economists see greater demand ahead
The National Association of Home Builders
(NAHB) expects both the economy and the
employment picture to improve in 2011 and
2012. Says NAHB Chief Economist David
Crowe, “Consumer uncertainty about the
economy, the poor job market and the large
number of foreclosed properties for sale
continue to be a drag on housing. However,
favorable home buying conditions should help
spur additional demand as the job market
gradually improves later this year. ”
That positive forecast is echoed by Dr. Mark
Dotzour, chief economist for the Real Estate
Center at Texas A & M. “The real economy
— economic activity that is not stimulated
by tax credits — appears to be turning the
corner toward recovery,” he said. “Corporate
profits and new orders for manufacturing have
clearly rebounded.”
Nonetheless, he cautions, “Job growth is the
essential engine of growth in this country.
Until we start producing jobs, it’s premature to
say we are out of the recession.”
California and Southern California
Prices are up 4.4% year-over-year, the tenth
consecutive increase, following 27 months of
pricing declines. Prices peaked at $484,000
in early 2007, and bottomed at $221,000 in
April 2009.
Of the homes that sold in August, 35.9%
were foreclosures, down from 42.8% a year
ago, and well down from the 58.5% peak in
February 2009.
WESTSIDE LOS ANGELES
Market Overview a monthly real estate report | November 2010
Recent news for the housing market is positive - from record low mortgage interest
rates to rising sales.
Despite recent price gains, the affordability
of California housing is astonishing when
viewed through the filter of inflation.
DataQuick reports that the typical mortgage
payment in August was $1,077, down from
$1093 in August 2009, largely thanks to
improved mortgage interest rates. That’s
59.5% below the peak set in June 2006 and
50.1% below the previous peak set in the
spring of 1989.
Indicators of market distress continue to
move in different directions. Foreclosure
is off its recent peaks, but remains
high by historical standards. Financing
with multiple mortgages is low, down
payment sizes are stable, and cash and
non-owner-occupied buying are up, MDA
DataQuick reported.
Southern California sales volume fell in
August. In Los Angeles, Riverside, San
Diego, Ventura, San Bernardino and Orange
counties, sales volume was down 2.1% from
July and 13.8% lower than a year ago. But
the pace of the decline is slower than it was
in July, when the void was felt most from
sales that had been pulled forward due to
federal tax credits ending in April 2010.
Advice for buyers: Record low mortgage
rates become more important the longer
you plan to stay in your home. Choose the
best home possible to meet your household’s
needs for years to come. The rise in housing
inventories may give you negotiating power
with sellers, but don’t risk the home of your
dreams over minor bargaining points.
If you’re interested in a foreclosed home, be
patient for a few weeks while the banks sort
things out, or move on to another property.
Keep in mind that your chances of getting a
loan are much higher if you can qualify for
a conventional or conforming loan.
Advice for sellers: With foreclosures
temporarily off the market, it’s important
to take advantage, before inventories rise
further. When buyers have little to motivate
them besides low interest rates, you must
eliminate any reason they might have to
wait. Stimulate them with lower prices and
better move-in condition than they would
find if they waited for prices to fall further or
foreclosures to come back on the market.
If you suspect neighbors are struggling
to maintain their home, offer to help by
mowing the lawn or assisting with repairs.
Insist that your city and local housing
authority force banks to maintain their
foreclosed homes in your area. Organize a
neighborhood cleanup drive for abandoned
homes in your area. Be proactive, and your
buyers will notice.
WESTSIDE LOS ANGELES
Update – While this report was being prepared, CNN Money reported the outlook for hiring is improving as U.S. businesses
continue to report growing demand and increased profitability, according to a survey of leading economists. In its October
industry survey, the National Association of Business Economics said that employment conditions improved in the third
quarter to the highest level since the start of the 2008-2009 recession.
Westside Los Angeles homes priced under $1 million are in a brisk seller’s market, while homes priced higher
are balanced for both buyers and sellers. Upscale and unique homes aren’t expected to sell at the same
pace as more affordable homes. Only when prices reach $4 million and above do inventories stall into a
buyer’s market.
*A balanced market is widely accepted as having six months of inventory on hand with market conditions favorable to both buyers and sellers. A buyer’s
market is characterized by conditions such as high inventories, falling prices, concessions by sellers, and incentives among other indicators. A seller’s
market has low inventories of homes for sale, escalating prices, and keen competition between buyers, including multiple offers.
Detached homes stand alone and share no common walls with any other neighboring home. Attached homes share at least one common wall with another
home. The type of home ownership is determined by whether it is a condominium, townhome, duplex, co-operative or other.
All Properties - Listings Sold by Calendar Quarter
9 Quarters through September 30, 2010
Based on data supplied by Combined LA-Westside Multiple Listing Service and its member Associations of REALTORS, who are not responsible for its accuracy.
Analysis dates are July 1, 2008 through September 30, 2010. Does not reflect all activity in the market place. Copyright © 2010, Real Data Strategies, Inc. All rights reserved.
$479 $434 $381 $394 $400 $418 $414 $435 $447
2,951
3,139 3,048
2,247
2,427
2,117
2,619
2,731
2,897
$0
$100
$200
$300
$400
$500
$600
2008/3 2008/4 2009/1 2009/2 2009/3 2009/4 2010/1 2010/2 2010/3
0
1,000
2,000
3,000
4,000
Avg Sale Price Listings Sold Units
1-year avg. price trend: Up 11.7 %
2-year avg. price trend: Down 6.8 %
1-year sales trend: Down 22.7 %
2-year sales trend: Down 11.1 %
Average Sale Price (Thousands) Homes Sold
Listings Sold by Calendar Quarter
All residential properties in C.L.A.W.
9 quarters List Price Range (Less than $1 million) through September 30, 2010
With prices up 11.7% in the year between September
2009 and September 2010, sales volume throttled back
22.7%.
Inventory in Months’ Supply – October 8, 2010
Detached properties in C.L.A.W.
8.7
4.6
4.4
3.9
4.7
4.0
3.6
2.7
0.0 2.0 4.0 6.0 8.0 10.0
$900K and over
$800K - $899K
$700K - $799K
$600K - $699K
$500K - $599K
$400K - $499K
$300K - $399K
Under $300K
Copyright © 2010, Real Data Strategies, Inc. All rights reserved. Use is by license agreement only.
Detached homes are selling nearly as fast as they can
close under $300K. Only homes priced $900K and
above are selling at a more balanced pace.
Detached Properties - Inventory in Months
Attached Properties - Inventory in Months
Attached homes are selling nearly as well as detached
homes under $699K. Sales volume slows down between
$700K and $899K, but is still within normal range.
Inventory in Months’ Supply – October 8, 2010
Attached properties in C.L.A.W.
10.9
7.2
7.4
6.0
5.1
5.0
4.5
4.2
0.0 2.0 4.0 6.0 8.0 10.0 12.0
$900K and over
$800K - $899K
$700K - $799K
$600K - $699K
$500K - $599K
$400K - $499K
$300K - $399K
Under $300K
Copyright © 2010, Real Data Strategies, Inc. All rights reserved. Use is by license agreement only.
Pricing Reality – October 8, 2010
List prices per square foot by MLS status
Detached properties in C.L.A.W.
$454
$290
$435
$422
$700
$0 $200 $400 $600 $800
SOLD
PENDING
HOLD
BACKUP
ACTIVE
Sellers should carefully consider current buyer
demand when pricing their home for sale.
When list prices per square foot of Backup
and Pending status properties are below that
of Active properties, sellers should ask for
pricing counsel from their Agent.
Copyright © 2010, Real Data Strategies, Inc. All rights reserved. Use is by license agreement only.
The broad chasm between detached home listings’ price
per square foot and that of solds illustrates the heated
seller’s market in the affordable price ranges.
Detached Properties - Pricing Reality for Sellers, per square foot
The price per square foot of active listings and solds
is closer in attached homes, possibly due to fewer
listings for sale and the greater availability of near-same
comparables.
Attached Properties - Pricing Reality for Sellers, per square foot
Pricing Reality – October 8, 2010
List prices per square foot by MLS status
Attached properties in C.L.A.W.
$385
$373
$370
$359
$498
$0 $100 $200 $300 $400 $500 $600
SOLD
PENDING
HOLD
BACKUP
ACTIVE
Sellers should carefully consider current buyer
demand when pricing their home for sale.
When list prices per square foot of Backup
and Pending status properties are below that
of Active properties, sellers should ask for
pricing counsel from their Agent.
Copyright © 2010, Real Data Strategies, Inc. All rights reserved. Use is by license agreement only.
Attached Properties - Monthly Listings Taken and Absorbed
12 Months through September 2010
Monthly Listings Taken and Absorbed
Attached properties in C.L.A.W.
12 months through September, 2010
573
605
614
571
530
476
517
403
249
393
325
409
0
100
200
300
400
500
600
700
0
200
400
600
800
1,000
New Listings Listings Absorbed
New Listings 409 325 249 393 403 517 476 530 571 573 605 614
Listings Absorbed 457 333 298 302 391 519 570 559 646 707 786 914
2009/10 2009/11 2009/12 2010/01 2010/02 2010/03 2010/04 2010/05 2010/06 2010/07 2010/08 2010/09
Attached home absorption rates also rose much faster
than new listings on the market.
Based on data supplied by Combined LA-Westside Multiple Listing Service and its member Associations of REALTORS, who are not responsible for its accuracy.
Analysis dates are July 1, 2008 through September 30, 2010. Does not reflect all activity in the market place. Copyright © 2010, Real Data Strategies, Inc. All rights reserved.
$953 $763 $683 $779 $801 $833 $887 $887 $964
2,395
2,651
2,466
1,935
2,071
1,790
2,137
2,360
2,476
$0
$200
$400
$600
$800
$1,000
$1,200
2008/3 2008/4 2009/1 2009/2 2009/3 2009/4 2010/1 2010/2 2010/3
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Avg Sale Price Listings Sold Units
1-year avg. price trend: Up 20.3 %
2-year avg. price trend: Up 1.2 %
1-year sales trend: Down 21.9 %
2-year sales trend: Down 12.2 %
Average Sale Price (Thousands) Homes Sold
Listings Sold by Calendar Quarter
Detached properties in C.L.A.W.
9 quarters through September 30, 2010
Detached Properties - Listings Sold by Calendar Quarter
9 Quarters through September 30, 2010
Detached home prices rose 20.3% in the year ending
September 2010, but sales volume pulled back.
Based on data supplied by Combined LA-Westside Multiple Listing Service and its member Associations of REALTORS, who are not responsible for its accuracy.
Analysis dates are July 1, 2008 through September 30, 2010. Does not reflect all activity in the market place. Copyright © 2010, Real Data Strategies, Inc. All rights reserved.
$585 $510 $470 $498 $466 $495 $500 $536 $514
1,120
1,138
1,241
831
992
661
977
1,125
1,122
$0
$100
$200
$300
$400
$500
$600
$700
2008/3 2008/4 2009/1 2009/2 2009/3 2009/4 2010/1 2010/2 2010/3
0
500
1,000
1,500
Avg Sale Price Listings Sold Units
1-year avg. price trend: Up 10.2 %
2-year avg. price trend: Down 12.3 %
1-year sales trend: Down 12.8 %
2-year sales trend: Down 11.8 %
Average Sale Price (Thousands) Homes Sold
Listings Sold by Calendar Quarter
Attached properties in C.L.A.W.
9 quarters through September 30, 2010
Attached Properties - Listings Sold by Calendar Quarter
9 Quarters through September 30, 2010
Attached home prices rose 10.2% in the year ending in
September 2010, while sales volume tapped the brakes.
©2010 Prudential California Realty Independently owned and operated. Objective data used in this report provided by Real Data Strategies. Inc. An independently owned and operated member of the Prudential Real
Estate Affiliates, Inc. This is not intended as a solicitation if your property is currently listed with another broker.
Monthly Listings Taken and Absorbed
Detached properties in C.L.A.W.
12 months through September, 2010
1,169 1,153
1,366
1,135
1,043
1,149
1,066
863
531
854
654
836
0
400
800
1,200
1,600
0
500
1,000
1,500
2,000
2,500
New Listings Listings Absorbed
New Listings 836 654 531 854 863 1066 1149 1043 1135 1169 1153 1366
Listings Absorbed 926 763 648 766 829 1121 1189 1114 1255 1359 1486 1884
2009/10 2009/11 2009/12 2010/01 2010/02 2010/03 2010/04 2010/05 2010/06 2010/07 2010/08 2010/09
Detached Properties - Monthly Listings Taken and Absorbed
12 Months through September 2010
The number of new detached home listings rose in
September. Fortunately for sellers, the absorption rates
rose even higher.

Rates As Of 10/14/2010

30 year Conforming up-to $417,000

3.75% 1.375 points

3.875 .63 points

4.00 .125 points

4.125 .00 points

20 year Conforming up-to $417,000

3.75 % .75 points

3.875 .125 points

4.00 .00 points

15 year Conforming up-to $417,000

3.25 % .875 points

3.375 .375 points

3.50 .00 points

30 year Conforming – Jumbo $417,001 - $729,750

3.875% 1.63 points

4.00 1.125points

4.125 .63 points

4.25 .25 points

4.375 .00 points

20 year Conforming –Jumbo $417,001 - $ 729,750

3.75% 1.75 points

3.875 1.125points

4.00 .625 points

4.125 .125 points

4.25 .00 points

15 year Conforming –Jumbo $417,001- $729,750

3.25 % 1.75 points

3.375 1.375 points

3.50 1.00 points

3.625 .625 points

3.75 .00 points

30 year Jumbo $729,751 - $1,000,000

4.50 % 1.561 points

4.625 1.125 points

4.75 .875 points

4.875 .50 points

5.00 .125points

5.125 .00 points

***All rates subject to fico scores over 740. Rates may differ for non-owner, condos, and down-payments less than 20%

Rates As Of 10/12/2010

30 year Conforming up-to $417,000

3.875 .61 points

3.95 .51 points

4.00 .15 points

4.125 .00 points

15 year Conforming up-to $417,000

3.25 1.28 points

3.375 .40 points

3.50 .23 points

3.625 .00 points

10 year Conforming up-to $417,000

3.25 1.13 points

3.375 .00 points

30 year Conforming –Jumbo $417,001 - $729,750

4.25 .62 points

4.375 .125 points

4.50 .00 points

15 year Conforming –Jumbo $417,001 - $729,750

3.75 .125 points

3.875 .00 points

**** RATES ARE BASED ON A MID-FICO SCORE OF 740 AND ABOVE. RATES MAY CHANGE FOR CONDOS WITH AN LTV OVER 75%, NON-OWNER –OCCUPIED PROPERTIES, AND CASH OUT.

Rates As Of 10/1/2010

30 year Conforming Up-to $417,000

3.875 1.50 points

4.0 1.00 points

4.125 .375 points

4.25 .125 points

4.375 .00 points

20 year Conforming Up-to $417,000

3.75 1.75 points

3.875 1.00 points

4.00 .50 points

4.125 .00 points

15 year Conforming Up-to $417,000

3.75 .00 points

30 year Conforming –Jumbo $417,001 – 729,750

4.125 1.375 points

4.25 1.125 points

4.375 .25 points

4.50 .00 points

20 year Conforming –Jumbo $417,001 – 729,750

3.875 2.00 points

4.00 1.375 points

4.125 .75 points

4.25 .125 points

4.375 .00 points

15 year Conforming –Jumbo $417,001 – 729,750

3.75 .00 points

30 year Jumbo $729,751- $1,500,000 ********************

5.125 1.50 point

5.25 .69 point

5.375 .50 point

ALL RATES ARE SUBJECT TO A 740 FICO SCORE WITH 20 % DOWN-PAYMENT, RATES MAY DIFFER FOR OVER 1 UNITS, NON –OWNER –OCCUPIED , 2^ND HOMES

Rates As Of 9/17/2010

30 year fixed up-to $417,0000

4.00 % 1.50 points

4.125 1.00 points

4.25 .125 points

4.375 .00 points

20 year fixed up-to $417,000

3.875 1.63 points

4.0 1.125points

4.125 .25 points

4.25 .00 points

15 year fixed up-to $417,000

3.75 .00 points

30 year Conforming_Jumbo $417,001 – 729,750

4.25 1.125 points

4.375 .375 points

4.50 .00 points

20 year Conforming Jumbo $417,001 – 729,750

4.125 1.25 points

4.25 ..25 points

4.375 .00 points

15 year Conforming Jumbo $417,001- 729,750

3.75 .625 points

3.875 .125 points

4.00 .00 points

******* All rates are based on a 740 mid-credit score. Rates may be different for, non-owner occupied transactions, condos, More than 1 unit .

Rates As Of 9/9/2010

30 year Conforming Up-to $417,000

4.00 1.375 points

4.125 1.00 points

4.25 .25 points

4.375 .00 points

20 year Conforming Up-to $417,000

3.875 1.50 points

4.0 1.00 points

4.125 .25 point

4.25 .00 points

15 year Conforming Up-to $417,000

3.75 .00 points

30 year Conforming Jumbo $417,001- 729,750

4.125 1.88 points

4.25 1.25 points

4.375 .375 points

4.50 .00 points

20 year Conforming – Jumbo $417,001 – 729,750

4.0 1.875 points

4.125 1.375 points

4.25 .375 points

4.375 .00 points

15 year Conforming –Jumbo $417,001 -729,750

3.75 1.00 points

3.875 .375 points

4.00 .00 points

******* All rates are based on a 740 mid-credit score. Rates may be different for, non-owner occupied transactions, condos, More than 1 unit .

Rates As Of 8/20/2010

30 year Conforming up-to $417,000

4.0 1.036 points

4.125 56 points

4.25 .25 points

4.375 .00 points

20 year Conforming up-to $417,000

4.0 1.314 points

4.125 1.052 points

4.25 .00 points

15 year Conforming up-to $417,000

3.75 .00 points

30 year Conforming- Jumbo $417,001 – 729,750

4.25 1.090 points

4.375 .25 points

4.50 .00 points

15 year Conforming – Jumbo $417,001 – 729,750

3.75 1.050 points

3.875 .375 points

4.0 .00 points

5/1 arm Conforming – Jumbo $417,001 – 729,750

4.50 .00 points

30 year Jumbo $727,750 - $1,500,000

5.00 1.125 points

5.125 .75 points

5.25 . 50 points

15 year Jumbo $727,750 - $1,500,000

4.375 .875 points

4.50 .75 points

4.625 .52 points

4.75 .40 points

4.875 .00 points

******* All rates are based on a 740 mid-credit score. Rates may be different for, non-owner occupied transactions, condos, More than 1 unit .

Rates As Of 8/5/2010

Conforming 30 year Fixed up-to $417,000

4.00 % 1.50 points

4125 % 1.375points

4.25 % .25 points

4.375% .00 points

Conforming 20 year Fixed up-to $417,000

3.75 2.00 points

3.87 1.50 points

4.00 1.25 points

4125 .125points

4.25 .00 points

Conforming 15 year Fixed up-to $417,000

3.75 .39% points

3.875 . 00 points

Conforming Jumbo 30 year fixed to $729,750

4.25 1.571 points

4.375 .57 points

4.50 15 points

4.625 .00 points

Conforming Jumbo 15 year fixed to $729,750

3.75 1.00 point

3.875 .625 point

4.0 38 point

4.125 .00 point

5/1 ARM Conforming Jumbo to $729,750

3.25 1.00 point

3.375 .875 point

3.50 .25 point

3.625 .00 point

7/1 ARM Conforming Jumbo to $729,750

3.625 .88 point

3.75 .50 point

3.875 .00 point

Jumbo 30 loan 30 years over $729,750

$1,000,000 -1, 500,000

5.25 1.00 point

5.375 .75 point

5.50 .55 point

5.625 .00 point

******* All rates are based on a 740 mid-credit score. Rates may be different for, non-owner occupied transactions, condos, More than 1 unit .

Rates As Of 7/28/2010

1. Conforming up-to $417,000 - 30 year

4.25 % 1 point

4.375 0 point

2 Conforming up-to $417,000 - 20 year

4.25 0 point

3 Conforming up- $417,000 - 15 year

3.75 .50 point

3.875 .00 point

4. Conforming –Jumbo $417,001- 729,750 - 30 year

4.25 1.955 points

4.375 1 point

4.50 .50 point

4.625 .00 point

5 Conforming –Jumbo $417,001 -729,750 - 15 year

3.75 1.60 point

3.875 1.125 point

4.0 .50 point

4,.125 .00 point

6 Conforming –Jumbo $417,001-729,750 5/1 arm

3.375 1.375 point

3.50 1.00 point

3.625 .50 point

3.75 .00 point

JUMBO Over $729,750

4.625 1.00 point

4.626 .75 point

4.875 .00 point

******* All rates are based on a 740 mid-credit score. Rates may be different for, non-owner occupied transactions, condos, More than 1 unit .