David Deem 714-997-3486 Dave@DeemTeam.com We all rely on appliances to make home life convenient and comfortable, but many of us make mistakes that cause appliances to break down or wear out faster than they should. These are some of the most common blunders: Washing Machine If you have a mountain of laundry, it can be tempting to stuff as much as you can into the washing machine. Overloading a washer can damage the suspension and coils and may also damage clothes. If items such as coins and zippers rattle around inside the washer, they can cause damage. Check pockets before putting clothes in the washer, and zip up any zippers so they don’t damage the machine. If you start a load of laundry and then forget to put it in the dryer when the cycle finishes, your clothes can get moldy. In addition to causing an unpleasant odor, mold can spread and damage the electronic components of the washer Hair, lint and dirt can accumulate inside a washing machine and clog the motor, which can p...

David Deem 714-997-3486 Dave@DeemTeam.com   ·         The active listing inventory decreased by 17 homes in the past two-weeks, down 1%, and now totals 2,520. In July, there were 4% fewer homes that came on the market compared to the 3-year average between 2017 to 2019 (2020 was skewed do to COVID-19), 157 less. Last ye ar, there were 4,449 homes on the market, 1,929 additional homes, or 77% more. ·         Demand, the number of pending sales over the prior month, decreased by 3 pending sales in the past two-weeks, nearly unchanged, and now totals 2,809. Last year, there were 3,281 pending sales, 17% more than today , due to a delayed Spring Market. ·         With not much of a change in supply or demand, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, remained unchanged at 27 days in the past couple of weeks, an extr...

David Deem 714-997-3486 Dave@DeemTeam.com What Credit Score Do You Need for a Mortgage? According to data from the most recent  Origination Insight Report  by  Ellie Mae , the average FICO® score on closed loans reached 753 in February. As lending standards have  tightened  recently, many are concerned over whether or not their credit score is strong enough to qualify for a mortgage. While stricter lending standards could be a challenge for some, many buyers may be surprised by the options that are still available for borrowers with lower credit scores. The fact that the average American has seen their credit score go up in recent years is a great sign of financial health. As someone’s score rises, they’re building toward a stronger financial future. As more Americans with strong credit enter the housing market, we see a natural increase in the FICO® score distribution of closed loans, as shown in the graph below: If your credit score is below 750, it’...

  David Deem 714-997-3486 Dave@DeemTeam.com Over the summer of 2020, refinances of existing mortgages rose over 200 percent, according to Realtor.com. Driven by the lowest interest rates and the highest home prices in recent history, many homeowners are opting to skip the frustrations of moving in favor of lowering their current monthly mortgage payments.  Investopedia.com warns that refinancing could be a bad idea if it’s done for the wrong reasons, such as taking cash out of your home to invest or consolidating credit card debt. Refinancing comes with considerable costs and fees—typically three to six percent of your loan amount, which can take as long as three years or more to pay back. If you decide to move sooner than three years into the new loan, you’ll lose money. You must also avoid the temptation to “reload” your paid-off credit cards with new balances.  Trading your 30-year mortgage in for a new 30-year loan also doesn’t make sense, as you’ll be adding more yea...

David Deem 714-997-3486 Dave@DeemTeam.com Headlines matter. Right now, it’s hard to read about real estate without seeing a headline that suggests homes have become unaffordable for most Americans. In reality, there’s hard evidence that shows how owning a home is more affordable than  renting  in most parts of the country, as record-low interest rates are keeping monthly mortgage payments about 23%  lower  than the typical payment of 20 years ago. Despite the facts, misleading headlines persist, and they impact how hopeful homebuyers perceive the market. In a recent  survey  by  realtor.com , home shoppers indicated they were surprised by what they could actually afford when buying their first home. In fact, 47% discovered their budget was larger than they expected. George Ratiu,  Senior Economist  at  realtor.com , explains: "For first-time buyers, especially, the drop in the 30-year mortgage rate…has provided unexpected leverage. Lower...

David Deem 714-997-3486 Dave@DeemTeam.com In 2020, buyers got a big boost in the housing market as mortgage rates dropped throughout the year. According to  Freddie Mac , rates hit all-time lows  12 times  this year, dipping  below 3%  for the first time ever while making buying a home more and more attractive as the year progressed  (See graph below): When you continually hear how rates are hitting record lows, you may be wondering:  Are they going to keep falling? Should I wait until they get even lower? The Challenge with Waiting The challenge with waiting is that you can easily miss this optimal window of time and then end up paying more in the long run. Last week, mortgage rates ticked up slightly. Sam Khater,  Chief Economist  at  Freddie Mac,   explains : “ Mortgage rates jumped this week  as a result of positive news about a COVID-19 vaccine. Despite this rise, mortgage rates remain about a percentage point below a year...

  David Deem 714-997-3486 Dave@DeemTeam.com Freddie Mac recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.80 percent, the lowest rate in the survey's history, which dates back to 1971.   "Mortgage rates remain very low, providing homeowners who have not already taken advantage of this environment ample opportunity to do so," said Sam Khater, Freddie Mac's chief economist. "Mortgage rates today are on average more than a full percentage point lower than rates over the last five years. This means that most low- and moderate-income borrowers who purchased during the last few years stand to benefit by exploring refinancing to lower their monthly payment."   - The 30-year fixed-rate mortgage averaged 2.80 percent with an average 0.6 point for the week ending Oct. 22, 2020, down from last week when it averaged 2.81 percent. A year ago at this time, the 30-year FRM avera...

David Deem 714-997-3486 Dave@DeemTeam.com The average 30-year, fixed mortgage rate stood at 3.65 percent this week, according to Freddie Mac's latest Primary Mortgage Market Survey® (PMMS®). 30-Year Fixed Averaging 3.65 percent, with an average 0.6 point Up from 3.64 percent the prior week, but down from 4.71 percent the prior year  15-Year Fixed Averaging 3.14 percent, with an average 0.5 point Down from 3.16 percent the prior week and 4.15 percent the prior year  5-Year Adjustable Averaging 3.38 percent, with an average 0.4 point No change from the prior week, but down from 4.01 percent the prior year  "While mortgage rates generally held steady this week, overall mortgage demand remained very strong, rising over 50 percent from a year ago thanks to increases in both refinance and purchase mortgage applications," says Sam Khater, Freddie Mac's chief economist. "As economic growth decelerates, it is clear that low mortgage rates will cont...

714-997-3486 Mortgage rates rewound last week, with the average 30-year, fixed settling at 4.53 percent, down from 4.59 percent the prior week, according to Freddie Mac's latest Primary Mortgage Market Survey® (PMMS®).  The downtrend is now in its second straight week—but is it enough to impact sales? "This stability in borrowing costs comes despite the highest core inflation rates since 2008 and turbulence in the currency markets," says Sam Khater, chief economist at Freddie Mac. "Unfortunately, this pause in rates is not leading to increasing home sales." On an annual basis, existing-home sales were 2.2 percent lower at the start of summer, according to the National Association of REALTORS® (NAR); likewise, new-home sales sunk 5.3 percent. "Purchase mortgage applications trailed year-ago levels again last week, and it's clear that in some markets the combination of ascending home prices, limited affordable inventory and this year's hig...