San Diego is Coming Back

Finally, some positive news for the San Diego “home” front.  Home purchase contracts and refinance contracts actually rose significantly last week as rates took a dip.  Basically, this shows us two things.  First, the buyers are still there eager and willing…they are simply playing the waiting game as we all have known for a while.  Second, it appears that rates are not going to rise in any significant fashion.  They are still fluctuating and at historically healthy levels. 

Many people who have purchased San Diego condos in the past few years are now refinancing their adjustable rate mortgages that have recently “adjusted”…UP!  I own a condo in San Diego that I purchased a little over three years ago at an adjustable rate mortgage rate of 4.89%.  That’s about as good as it gets.  When the rate adjusted however it went up to 7.98%...ouch!  Since the condo is a rental property, refinancing will not command a rate much better than the adjusted rate…just something to look out for. 

Is what happened last week a sign of good things to come?  We certainly hope so.  We definitely know the buyers are here, the demand to buy San Diego condos and homes is still here, but people are still waiting.  The time is now.