Keeping a Pulse on The San Francisco Bay Area | Peninsula | Silicon Valley | Real Estate Market
Author: The Caton Team - Realtors
Sabrina & Susan are native Californians - born and raised in the Silicon Valley with a passion for Residential Real Estate. A mother and daughter-in-law duo called - The Caton Team. With over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time. Call | Text at: 650-799-4333 | Email Info@TheCatonTeam.com
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true. The Peninsula is our backyard - let us help make it yours. We represent Buyer’s and Seller’s throughout the Bay Area.
The Caton Team – Susan & Sabrina
A Family of Realtors
Effective. Efficient. Responsive.
What can we do for you?
The Caton Team is proud to announce, that Berkshire Hathaway HomeServices with Welcome Home Funding can loan a sellers up to $30,000 or 20% of their home’s equity – towards preparing a home for sale. With NO Interest & NO Fees!
Fund are available after a 48 hour approval process, flexible to select any vendor a seller wants, flexible on what a seller spends their funds on, no vendor platform markups, no lien on the property, no fees or interest paid by the seller and so much more. We’d love to sit down with you and discuss how Get Ready Capital can help you sell your home! CONTACT THE CATON TEAM FOR FURTHER DETAILS | Call | Text 650.799.4333 | Email | Info@TheCatonTeam.com
Got Questions? The Caton Team is here to help.
Call| Text | Sabrina 650.799.4333 |EMAIL | WEB| BLOG
We love what we do and would love to help you navigate your sale or purchase of Residential Real Estate. Please reach out at your convenience for a personal consultation. Please enjoy our free resources below and get to know our team through our clients’ words.Testimonials.
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
“As first-time homebuyers we knew very little about the process, what to expect, or how long it might take, so we leaned heavily on the Caton Team’s expertise to get us up to speed and to help us navigate through the hurdles. As it turned out, we hit a pretty major snag that could have derailed our purchase, but with the Caton Team counseling patience and practicing tenacity, we were able to successfully purchase our forever home. We really appreciated Susan and Sabrina’s transparent, professional, and forthright approach. I don’t think we would have landed where we are without them.”
– Kyriell & Shane – 2022 – San Francisco.
THANK YOU Shane & Kyriell – Your kind words mean the world to us. We truly enjoyed getting to know you both and helping you achieve your goal of owning a piece of San Francisco. We started our journey early in 2022 – before the rate hike and after one offer experience, they were better poised to act on their actual dream home. Up against other offers, we set our clients apart. When a surprise nearly derailed their dream, we used kindness, patience, and solid business practices to smooth out the wrinkles and bring this transaction to a successful and happy conclusion – it’s what we do. Handing you the keys made my day. Thank you for your trust – we truly enjoyed working with you both.
We love what we do and we love taking great care of our clients.
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
Where does stress come from? Look in the mirror. Experts say stress is entirely self-imposed—you are the one letting stress get in the way of getting more done. The good news is that if you are creating the stress, you can also control it. You can let stress drive your actions and throw your day off. Or once stress appears, you can address it. You can spend the day getting things done—instead of stressing over how much there is to do. Here’s how to get stress under control.
Wrap up yesterday. Avoid worrying today over something you left uncompleted yesterday. Get it done now and move on to today’s tasks.
Prioritize. Avoid spiraling over everything on your to-do list—prioritize. Items that most impact personal relationships and finances take priority. Attend to these things before you spend time on less urgent ones. This is also a good time to identify matters beyond your control and remove them from the list.
Set realistic deadlines. Avoid tight deadlines. If someone else is setting the deadline, negotiate one that gives you the time you need. The stress of an unrealistic deadline makes it hard to deliver a quality result.
Take breaks. If you find yourself getting worked up about getting something done, stop doing it. Take a five- or ten-minute break to calm down, rest, get fresh air, meditate, pray, or just close your eyes and think of something that makes you happy. You will return to the task with less stress, and the mindset to function more efficiently.
Reduce your daily decisions. Plan out your week, deciding what must be done and when. Schedule regular activities as recurring items in your calendar. Get organized, keeping things you need for certain activities, like workouts, in one place so you skip the task of gathering them each time. The fewer decisions you have to make, the less stressful your life will become.
Get help if you need it. If you have any doubts about your ability to complete a task alone, make the call to ask for help as soon as possible, before you start having difficulties. Another person boosts your productivity and trims your stress (“a worry shared is cut in half”).
Turn off the voices in your head. When things get busy, you might start asking yourself, “What’s happening here? Can I handle it? What if I can’t?” This immediately creates stress. To get out of this predicament, focus on someone else. Consider what they need, what they may be fearing, and how you can help. This quiets your internal voice.
Keep an eye on the big picture. It’s common to stress over things that are less critical than we think. Do what you need to, but before stressing out over it, consider its significance in the big picture. Unless a situation puts you in physical danger, it’s probably not worth getting upset about.
The Caton Team is here to help.
We love what we do and would love to help you navigate your sale or purchase of Residential Real Estate. Please reach out at your convenience for a personal consultation. Please enjoy our free resources below and get to know our team through our clients’ words.Testinmonials.
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
Once you’ve applied for a mortgage to buy a home, there are some key things to keep in mind. While it’s exciting to start thinking about moving in and decorating, be careful when it comes to making any big purchases. Here are a few things you may not realize you need to avoid after applying for your home loan.
Don’t Deposit Large Sums of Cash
Lenders need to source your money, and cash isn’t easily traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.
Don’t Make Any Large Purchases
It’s not just home-related purchases that could disqualify you from your loan. Any large purchases can be red flags for lenders. People with new debt have higher debt-to-income ratios (how much debt you have compared to your monthly income). Since higher ratios make for riskier loans, borrowers may no longer qualify for their mortgages. Resist the temptation to make any large purchases, even for furniture or appliances.
Don’t Co-Sign Loans for Anyone
When you co-sign for a loan, you’re making yourself accountable for that loan’s success and repayment. With that obligation comes higher debt-to-income ratios as well. Even if you promise you won’t be the one making the payments, your lender will have to count the payments against you.
Don’t Switch Bank Accounts
Lenders need to source and track your assets. That task is much easier when there’s consistency among your accounts. Before you transfer any money, speak with your loan officer.
Don’t Apply for New Credit
It doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), it will have an impact on your FICO® score. Lower credit scores can determine your mortgage interest rate and possibly even your eligibility for approval.
Don’t Close Any Accounts
Many buyers believe having less available credit makes them less risky and more likely to be approved. This isn’t true. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those aspects of your score.
In Short, Consult an Expert
To sum it up, be upfront about any changes when talking with your lender. Blips in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. If your job or employment status has changed recently, share that with your lender as well. Ultimately, it’s best to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.
Bottom Line
You want your home purchase to go as smoothly as possible. Remember, before you make any large purchases, move your money around, or make any major life changes, be sure to consult your lender – someone who’s qualified to explain how your financial decisions may impact your home loan.
My Two Cents: Your home loan is the most important part of your homeowner journey. The Loan Approval is literally a snapshot of your current financial picture and you DO NOT want to change that picture. If you need to move money around, gather gift funds, pay off debt, etc – do so BEFORE YOU APPLY and keep a paper trail! However, The Caton Team highly recommends that you speak with a lender before you do anything. This ensures you’re doing the right things that do not impact your credit score negatively.
Got Questions? The Caton Team is here to help.
Call| Text | Sabrina 650.799.4333 |EMAIL | WEB| BLOG
We love what we do and would love to help you navigate your sale or purchase of Residential Real Estate. Please reach out at your convenience for a personal consultation. Please enjoy our free resources below and get to know our team through our clients’ words.Testimonials.
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
Sometimes the journey our clients take can bring us to new areas. Have no fear – that Caton Team is here. With over forty years of combined Real Estate experience, The Caton Team helps our clients navigate their purchase or sale with local data, experience, solid ethics and business practices.
We were up against multiple offers again – old news in the Bay Area. So we did what we always do – represent our clients with integrity, kindness, and an impeccable offer. The relationships we form with our clients and the reputation we set with our fellow Realtors – matters.
The Caton Team believes in order to be successful in the Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with integrity, while strategically maneuvering through negotiations and contracts.
A mother and daughter-in-law team with 40 years of combined, local real estate experience, knowledge, and know-how – wouldn’t you like The Caton Team to represent you? Let us know how we can be of service.
The Caton Team knows – in order to be successful in the Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with integrity, while strategically maneuvering through negotiations and contracts.
A mother and daughter-in-law team with 40 years of combined, local real estate experience, knowledge, and know-how – wouldn’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Effective. Efficient. Responsive – How can The Caton Team help you? Let us know @ info@TheCatonTeam.com | 650.799.4333
If you or someone you know needs Real Estate assistance – let us know – we’ll take great care of them and you! 🏡 DRE | 01413526 | 01238225 | 7000218 | 01499008
How can The Caton Team help You?
We truly enjoyed helping our clients buy their first home. The Caton Team loves what we do and would love to help you – please enjoy our resources below. Get to know us through our client’s words by click here.
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
A savvy real estate agent who has your best interests at heart can make all the difference in the home-buying process. These days, buying a home within your budget will likely involve trade-offs. A good agent can help you navigate the process and establish and focus on your priorities. – We always tell our clients – we won’t sell you a house – but we will get you the house you want. We strive to educate our clients on the market, how aggressive we need to be in order to be the winning offer, and how the budget translates into homes. We’re here to guide our client’s home.
Make a List, and Check It Twice
Use a checklist to help identify what you need and want as you search for and visit homes. It can help you stay focused as you evaluate each house. Here is a comprehensive home viewing checklist you can use to track important details and what you liked (and didn’t like) about each house you visit. –– This can be the hard part. We often have an idea of what our home will look like and in reality, it is different. It’s best to understand why you are buying? What’s important to you – size or commute and your long-term goals. We happily discuss this with our clients to learn what is most important so we can hone into the areas they can compete.
To prevent buyer’s remorse, it’s important to focus on the important things that aren’t easy to change: location and layout. You can change many things about a house after it becomes yours, but the location isn’t one. If a quiet neighborhood or short commute are high priorities for you, don’t lose sight of these. Similarly, it’s usually difficult and expensive (or sometimes impossible) to change a home’s layout. – Couldn’t agree more. Don’t lose sight of what you need.
Pay Attention to Your Home Inspection
When buying a home, your inspection report can help you better understand your home’s physical structure and components. It should detail the age and condition of your home’s systems and appliances and point out needed maintenance and possible repairs you should plan for. See how long home systems and appliances last.
In a competitive market, it can be tempting to forgo inspections to make your offer more attractive, but unless you are prepared for the unexpected and have a financial cushion, it can be a risky move. Let your real estate agent guide you. – Never forgo an inspection – a buyer needs to know the condition of the home they are buying – the question is – do you make the inspection contingent on the offer. That – is a case-by-case situation, and we review the inspections with our clients. Then have them ask questions directly to the inspector to understand the condition of the property they are buying.
Include a Home Warranty When You Buy a House
A great way to minimize risk, maximize budget protection, and prevent buyer’s remorse is to purchase a home warranty when you buy your new home. You get all these valuable home warranty benefits from First American, plus special pricing and coverage for home buyers:
Budget protection from costly repairs and replacements of covered items
An easy, time-saving way to schedule service providers when covered items break
The security and convenience of unlimited service requests via phone or online 24/7
Coverage that lasts for a year or more after closing
Got Questions? – The Caton Team is here to help.
We love what we do and would love to help you navigate your sale or purchase of Residential Real Estate. Please reach out at your convenience for a personal consultation. Please enjoy our free resources below and get to know our team through our clients’ words.Testinmonials.
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
Home shoppers’ interest in relocating to a different state is on the rise, finds a new survey from realtor.com®. During the first quarter, 40.5% of prospective buyers searching for homes for sale on realtor.com® were looking for homes outside of their current state.
“After two years of pandemic remote work, offices have started to reopen, but instead of seeing a slowdown in the number of people interested in homes out of state, we’re seeing an acceleration,” says Danielle Hale, realtor.com®’s chief economist. “Taking a closer look at the top destinations, we see some very different trends driving the desire to live out of state and home shoppers’ diverse needs.”
Affordability remains a key focus for buyers, Hale says. Demand for less expensive areas has increased in recent months due to high inflation and rising mortgage rates. Also, the flexibility from the higher adoption of remote work is fueling greater interest in sunnier climates like the Sun Belt, Hale says. Some buyers also are showing renewed interest in living downtown. Two major metros made realtor.com®’s list of top destinations for out-of-state home shoppers.
The following are the top 10 relocation destinations, according to realtor.com®.
We love what we do and would love to help you navigate your sale or purchase of Residential Real Estate. Please reach out at your convenience for a personal consultation. Please enjoy our free resources below and get to know our team through our clients’ words.Testinmonials.
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
If you’re a homeowner thinking about selling your house, you’re probably looking for the best time to make your move. That means you’re likely balancing a number of factors, like your changing needs, where you’ll go when you sell, and today’s mortgage rates in order to time it just right.
According to recent data, that sweet spot could already be here. The latest Home Purchase Sentiment Index (HPSI) by Fannie Mae finds that 76% of consumers believe now is a good time to sell.
The graph below shows the percentage of survey respondents who say it’s a good time to sell a house. The big dip in March and April of 2020 reflects how consumer sentiment dropped at the beginning of the pandemic as uncertainty about the health crisis grew. Since then, the percentage has grown consistently as more people feel confident it’s a good time to sell.
In fact, survey respondents think it’s an even better time to sell a house today than they did in 2019, which was a strong year for the housing market. The latest survey results indicate one of the strongest peaks in seller sentiment in nearly three years (see graph below):
(see graph below):
What Makes Today a Good Time To Sell?
One reason so many people think it’s a good time to sell is because there are still more buyers in today’s market than there are homes for sale. That’s driving home prices up, making it a good time to sell your house.
And if you’re on the fence about whether or not to sell because you don’t know where you’ll go once you do, know that you might have more options today than in previous months. That’s because the number of homes coming onto the market has grown each month since the start of the year. When more homes come onto the market, it gives you more opportunities to find one that meets your changing needs.
Bottom Line
While the number of homes available for sale is growing and giving you more options for your move, inventory is still low overall. That could mean it’s a great time for you to sell. If you’re ready to address your changing needs and take advantage of today’s favorable conditions, contact The Caton Team
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
We love what we do and would love to help you navigate your sale or purchase of Residential Real Estate. Please reach out at your convenience for a personal consultation. Please enjoy our free resources below and get to know our team through our clients’ words.Testinmonials.
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.
A mother and daughter-in-law team with over 40 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
A little over a decade ago, about half of homes were being sold to first-time buyers.
Things have changed.
Now, only 27% of sold homes are going to first-time buyers. It isn’t that people aren’t interested in purchasing a home – after all, demand for homes was turbocharged during the course of the COVID-19 pandemic.
But first-time homebuyers are having an exceptionally hard time breaking into the market. What gives? Why are a record low proportion of properties being sold to people buying their first home?
1. High Price of Homes
The first reason first-time homebuyers are having a hard time accessing the market is the sky-high price of homes.
Home prices have risen nearly 20% in the past year – representing an unusual and historic surge that disadvantages first-time buyers, who are typically younger, haven’t accumulated housing equity, and don’t have the means to make a sizable down payment.
Whether rising home prices will abate at some point this year is hotly debated, but the price of homes has been juiced by three interrelated factors:
Inventory: Housing inventory remains at a record low, and continued supply chain bottlenecks leaves most experts predicting low inventory for the foreseeable future.
Investors: Investors buy about one-third of homes in the U.S., increasing competition for available homes. Rising inflation could cause even more investors to flood the housing market, as real estate is traditionally seen as a safe investment against devalued currency.
Overall, rising prices is the biggest challenge for anyone – especially those making their first purchase – who wants to buy a home.
2. Rising Interest and Mortgage Rates
The high price of homes alone serves as an impediment for first-time homebuyers. But it’s not the only factor boxing first-time buyers out of the real estate market.
Consider a couple buying their first home. They’re targeting a mortgage of $200,000, which is already far lower than the median in many markets. Rising interest rates, which the Federal Reserve introduced to tamp down inflation, have risen from 2.6% to around 5% in the past 16 months. The $200,000 mortgage the buyers are targeting? It’s now more than $200 per month more expensive than it would have been 16 months ago.
As if rising home prices and steeper mortgage rates weren’t enough, first-time homebuyers also face the new challenge of apparently slower wage growth.
In the wake of the COVID-19 pandemic, government stimulus, and a historically tight labor market, American wages grew fast. But that wage growth has cooled somewhat in the early part of 2022, with more people working or looking for work and employers feeling less pressure to offer pay increases to bring people into the labor force.
Slower wage growth may be a relief to people concerned about inflation, but is in the short-term a major difficulty for homebuyers, especially those purchasing for the first time. Wages are generally not keeping pace with inflation, and the preexisting high price of homes and rising mortgage rates mean that many young buyers are less equipped to buy than they were months ago.
For the immediate future, first-time homebuyers are likely to struggle to enter the housing market. In the long term, tapering home prices and mortgage rates and increased inventory could make for a friendlier first-time homebuyer market.
To view the original article, visit the Homesnap blog.
It can feel daunting but it isn’t. It is a journey. The Caton Team believes in Home Ownership for long term wealth and are here every step of the way.
The Caton Team is here to help.
We love what we do and would love to help you navigate your sale or purchase of residential Real Estate. Please reach out at your convenience for a personal consultation. Please enjoy our free resources below and get to know our team through our clients’ words.
Got Real Estate Questions? The Caton Team is here to help.
We strive to be more than just Realtors – we are also your home resource. If you have any real estate questions, concerns, need a referral or some guidance – we are here for you. Contact us at your convenience – we are but a call, text or click away!
The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true.
A mother and daughter-in-law team with over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time.
Call| Text | Sabrina 650.799.4333 | Susan 650.796.0654 |EMAIL | WEB| BLOG
The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?
Mortgage applications increased 6.6% from one week earlier, according to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association’s (MBA) for the week ending June 10, 2022. Last week’s results are compared to the prior week, which included an adjustment for the Memorial Day holiday.
The Market Composite Index, a measure of mortgage loan application volume, increased 6.6% on a seasonally adjusted basis from one week earlier.
On an unadjusted basis, the Index increased 17% compared with the previous week.
The Refinance Index increased 4% from the previous week and was 76% lower than the same week one year ago.
The seasonally adjusted Purchase Index increased 8% from one week earlier.
The unadjusted Purchase Index increased 18% compared with the previous week and was 16% lower than the same week one year ago.
The refinance share of mortgage activity decreased to 31.7% of total applications from 32.2% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 8.1% of total applications.
The FHA share of total applications increased to 11.8% from 11.3% the week prior.
The VA share of total applications increased to 11.7% from 11.4% the week prior.
The USDA share of total applications increased to 0.6 % from 0.5 % the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.65% from 5.40%, with points increasing to 0.71 from 0.60 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $647,200) increased to 5.25% from 4.99%, with points increasing to 0.54 from 0.44 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 5.36% from 5.30%, with points increasing to 1.00 from 0.79 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 4.79% from 4.62%, with points increasing to 0.80 from 0.65 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs increased to 4.57% from 4.51%, with points increasing to 0.8 from 0.68 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The takeaway:
“Mortgage rates increased for all loan types, with the 30-year fixed rate last week jumping 25 basis points to 5.65 %—the highest level since 2008. Mortgage rates followed Treasury yields up in response to higher-than-expected inflation and anticipation that the Federal Reserve will need to raise rates at a faster pace,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting. “Despite the increase in rates, application activity rebounded following the Memorial Day holiday week but remained 0.29 % below pre-holiday levels. With mortgage rates well above 5%, refinance activity continues to run more than 70% lower than last year.”
Added Kan, “Purchase applications were down more than 15% compared to last year, as ongoing inventory shortages and affordability challenges have cooled demand, coinciding with the rapid jump in mortgage rates.”
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