Mortgage applications hit 12-year low

Mortgage applications fell 5.5 percent in the past week, to the lowest level in more than 12 years, according to a weekly report from the Mortgage Bankers Association released Wednesday.

The plunge follows a slight increase in interest rates. Refinance and home-purchase applications dropped 4 percent and 6 percent, respectively, as investors wait for word from the Federal Reserve on whether it will reduce its bond-buying activity.
“It is a discordant note compared to the more positive data we are seeing in other parts of the economy, including the job market reports and industrial production,” said Michael Fratantoni, the association’s vice president of research and economics. “Credit tightening could be part of it, rates another part.”
The average contract interest rate for 30-year fixed mortgages with conforming loan balances ($417,000 or less) rose to 4.62 percent from 4.61 percent, a small move but the highest level since September. The average rate for a five-year adjustable-rate mortgage jumped to 3.2 percent from 3.11 percent. More borrowers have been heading to ARMs lately, seeking lower rates amid rising housing prices. 
Total mortgage applications are down 56 percent from a year ago, with the plunge in refinances leading the way. Purchase applications though are down 10 percent, mirroring a slowdown in home sales in many previously hot markets.
California Realtors reported Tuesday that November sales fell 15 percent in Los Angeles and 13 percent in San Francisco year over year.
With credit still tight, and Fannie Mae and Freddie Mac announcing fee hikes, fewer borrowers can afford a home loan.
Compounding this, the government’s mortgage insurer, the Federal Housing Administration, has lowered loan limits in hundreds of local markets starting in 2014. That will make thousands of potential borrowers ineligible.
The share of all-cash buyers remains high, accounting for more than one-third of home sales in October, according to the National Association of Realtors.

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Joseph Sabeh Jr.

Please let me introduce myself, I am Joseph Sabeh, Jr a full time licensed professional realtor. I have been with Executive Homes Realty for over 13 years and was trained by my late father and Broker, Joseph Sabeh. I recently incorporated the company and we moved the office to 43513 Mission Blvd just last summer. I could not have found a more honorable place to work. After earning my experience selling high end Ralph Lauren suits and studying business management in southern California, I decided to pursue my dream of selling real estate and working with my father. He had already had such an excellent reputation and established a niche market of high end clientele that catered to the very best. I wanted to become the consummate professional just like him and have strived to become just that being just a phone call or email away from getting back to my client’s immediate needs! Known by my clients for my tenacity, perseverance , and excellence in negotia- tion(Certified Negotiation Expert), I have always strived to meet my clients high demands and goals. As a result of my professionalism, I have achieved an extensive portfolio of referrals from past and present clients. I credit my current values from my upbringing of my parents and the credit is due to them without question. Their integrity, pride, and willingness to sacrifice for the better of my life and my sister’s always left a mark on me that one day I will pass on. Their desire to achieve a better life and live it to the fullest is one that some families dream of and I certainly am appreciative of all of the education and etiquette I have learned from them both. I have sold condos up to 3.2 million dollar homes and I am here for any and all of your future real estate needs and wishing you the very best experience in your future real estate endeavors with me.

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