September 15th, 2008 5:26 PM by Michael Reen
Hello from the Reen Team!
I would like to give you an update on what is going on with the housing market, and how we will continue to fit into your "big picture".
First, a little about us. Mike and I are now part of Cedar Mortgage, a successful local company that has been part of Campbell for 27 years. You can learn more, and always find us at
An added benefit- we are still at our location at 3190 S. Bascom Ave, and there is a good chance we will remain here as part of Cedar Mortgage.
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So, what is going on with the San Jose market? As recently as March, things looked pretty quiet as rates climbed and appreciation began flattening out- in certain neighborhoods, a lot worse...
In April, the Economic Stimulus Package brought us a little opportunity- they raised the conforming limit in most Bay Area counties so that loans are affordable up to $729,750 through the end of 2008. With the added benefit of HUD's FHA program, options became available for just about anyone that has 3% down on a loan up to $729,750. Loans under $417,000 remain even more accessible.
Not to say it has been a boon for everyone- because it hasn't... it continues to be hard for many people who's property continues to lose value while their equity lines are frozen or even eliminated. The situation today is unique to almost every individual borrower depending on their mortgage product, debt structure, property, and property location. Refinances became next to impossible as rates increased and equity decreased.
As of last weekend, the US government has gone ahead with their plan to take control of Fannie Mae and Freddie Mac, which has had a huge impact on rates. It has been enough of a positive change to allow refinances to move forward, and has made for some very happy new homeowners as well!
Today, the stock market plummeted on all the "Wall Street" news, and rates shifted down slightly again.
Where does it go from here? I believe it will continue to evolve differently in different areas. I would recommend a quick conversation in the next week or so for a review of your particular scenario. Let me tell you more about what is happening, and where things are going for you!
Sincerely,
Michele Morse Reen