Santa Clara County Inventory Trend
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Friday, September 12, 2008
Mortgage Rate Update and Commentary
Thanks to the move by the US Treasury Department on Sunday to take over Fannie Mae and Freddie Mac mortgage rates got a great boost this week. Because the government is now backing the Fannie/Freddie bonds, this action created a tremendous surge in demand for them. High demand for bonds drives up bond prices, and the result is rates improved on Monday by 0.50% in rate for almost all conforming fixed rate products.
Since Tuesday rates have increased by about 0.125% in rate, but I believe this increase will be short lived and here’s why. Mortgage Bonds peaked after a fantastic run over the past four weeks. The bond market never moves in a straight line similar to the stock market. There are ups and downs, but it is somewhat predictable as to the general trend. So what’s happening is traders are taking some profits they’ve gained in the past several weeks and bond prices dropped in each of the past four days. This is illustrated by the graph of Mortgage Bond pricing below. The green days are positive for bond prices and mortgage rates, and the red days are negative for bond prices and rates.
Since Tuesday rates have increased by about 0.125% in rate, but I believe this increase will be short lived and here’s why. Mortgage Bonds peaked after a fantastic run over the past four weeks. The bond market never moves in a straight line similar to the stock market. There are ups and downs, but it is somewhat predictable as to the general trend. So what’s happening is traders are taking some profits they’ve gained in the past several weeks and bond prices dropped in each of the past four days. This is illustrated by the graph of Mortgage Bond pricing below. The green days are positive for bond prices and mortgage rates, and the red days are negative for bond prices and rates.
There is no good reason for bond prices to get worse over the past four days, other then just being over bought. ALL the signs point to better pricing for mortgage bonds and lower interest rates. Here are the signs I’m seeing:
Price of Crude Oil is BELOW $100 / Barrel
Wholesale prices fell for the fist time this year
Producer prices dropped and was the sharpest decline in 2 years
Retail sales for Aug. was down
Consumer sentiment was higher than expectations
Unemployment is rising
All of this points to greener pastures ahead. We will see some ups and downs along the way, but the general trend should be for better rates over the next weeks and months if the current trend continues.
Property List For Week 9-11
Address/List Price
119 13TH (S), SAN JOSE;5/3;2463 $590,900
391 13TH ST (NORTH), SAN JOSE DUPLEX 4/2;2160 $439,900
484 14TH (N) STREET, SAN JOSE 3/2;924 $354,500
237 33RD (S) STREET, SAN JOSE 3/2;1148 $353,900
535 68TH AVENUE, OAKLAND 5/2/2107 $279,900
2268 80TH AVENUE, OAKLAND 4/2/1313219 $165,000
1463 81ST AVENUE, OAKLAND 3/1;900 $179,900
1746 96TH AVENUE, OAKLAND 3/1;1060 $141,466
812 105TH AVENUE, OAKLAND 2/1;884 $99,900
1820 105TH AVE., OAKLAND 3/1;1522 $259,900
1880 ANNE MARIE COURT, SAN JOSE 4/2;1434 $459,900
1728 BERRYWOOD DR, SAN JOSE 3/1;900 $279,900
14540 BLOSSOM HILL RD., LOS GATOS 4/2.5;2193 $999,999
2509 BORAX DRIVE, SAN JOSE3/2;1545 $546,000
426 CALIENTE DRIVE, SAN LEANDRO $239,900
437 CAMILLE CIRCLE #16, SAN JOSE 3/2.5;1307 $599,000
1012 CAMIELLIA DRIVE, ALAMEDA 3/2;1623 $659,900
2110 CORKTREE LANE, SAN JOSE 5/3;1772 $509,575
790 DIADEM DRIVE, SAN JOSE 3/1;1141 $285,000
1058 DURNESS PLACE, SAN JOSE 3/2;1238 $339,900
2802 EAST AVENUE, HAYWARD 5/3;3412 $525,000
2575 EASTON WAY #84 SAN JOSE $197,900
130-132 EASTWOOD COURT, SAN JOSE4/2;1493 $349,900
1401 EXCELSIOR AVENUE, OAKLAND; 3/1, 1200 $414,900
2466 GOLZIO COURT #4, SAN JOSE 2/1;798 $184,500
401 GRANT (S) STREET, SAN MATEO 3/1;1040 $664,900
2816 HIDDEN LANE, HAYWARD 3/2;1800 $519,900
3265 HILLS DRIVE (EAST), SAN JOSE 3/2;1496 $349,900
980 IROQUOIS AVENUE, LIVERMORE 3/2;1282 $299,900
6371 JOAQUIN MURIETA AVE #A, NEWARK 2/1.5;1132 $279,900
5510 JUDITH STREET, #1 SAN JOSE 2/1;810 $194,900
10090 KENILWORTH WAY, SAN JOSE 3/1;1024 $284,900
706 LAKEFAIR DRIVE, SUNNYVALE 3/2;1108 $459,900
3009 LA TERRACE CIR #70 SAN JOSE 2/1; 904 $314,900
3785 LAMOUREUX ST, SAN LEANDRO 3/2;1517 $379,900
4942 LEIGH AVENUE, SAN JOSE 3/2;1110 $498,900
2751 LONE BLUFF WAY, SAN JOSE 3/1.5;1075 $239,900
4536 LAS LOMITAS DRIVE, PLEASANTON 3/2;1249 $489,900
520 MACARTHUR AVENUE, REDWOOD CITY 2/1;1030 $399,900
1070 MARYANN DRIVE, SAN JOSE 3/1.5;1156 $545,000
19553 MEEKLAND AVENUE, HAYWARD 3/3;1332 $308,750
708 MINER ROAD, ORINDA 4/3.5;3557 $1,499,900
6223 MONADNOCK WAY, OAKLAND 2/1;957 $160,000
2861 MOUNT DIABLO STREET, CONCORD 3/2;1281 $239,900
1540 MOUNT SHASTA DRIVE, SAN JOSE 3/2;1198 $339,530
593 OLDBROOK COURT, SAN JOSE 4/2;1220 $299,900
ADDRESS LIST PRICE
1775 PANDA WAY #342, HAYWARD 2/2;900 $199,900
1260 PERMATA COURT, SAN JOSE 1/1;696 $164,900
3453 PISTACHIO DRIVE, SAN JOSE 3/1.5;1157 $174,900
30 POTEL TERRACE, FREMONT 3/2.5;1663 $513,900
75 RANCHO DRIVE, SAN JOSE 2/2;991 $199,900
2144 RIO GUACIMAL COURT, SAN JOSE 3/1.5;1180 $190,000
1625 SAN ANTONIO ST (EAST), SAN JOSE 2/1;625 $224,900
130 SAN FERNANDO (EAST) #402, SAN JOSE 2/2;1622 $543,200
2827 SAN JUAN BLVD., BELMONT 3/3;2380 $630,500
1617 SCOTTY STREET, SAN JOSE 3/1;960 $244,900
335 SENTER ROAD, SAN JOSE 3/2;1473 $427,500
125 SERRAVISTA AVENUE, DALY CITY 4/3/2080 $742,900
1196 SHORTRIDGE AVE., SAN JOSE; 2/1.25, 1672 $339,000
374 SPARLING DR, HAYWARD 3/2;1747 $259,900
5503 SPINNAKER DR #4 SAN JOSE 2/1; 798 $190,000
5054 SNOW DRIVE, SAN JOSE 3/1;1104 $274,900
260 SUNSET BLVD. #39, HAYWARD 2/1.5;1016 $164,900
1436 TAPER, SAN JOSE 4/2.5;1728 $399,900
1451 TERILYN AVE, SAN JOSE 3/2;1178 $319,900
5836 THORNTON AVENUE, NEWARK 4/2;1503 $429,900
1505 TURANDOT COURT, SAN JOSE 2/1.5;988 $227,900
2835 WILSON COMMON, FREMONT 3/2.5;1748 $469,900
646 WOODLAND TERRACE, SAN JOSE 4/3;2232 $599,900
2271 WOODRANCH ROAD, SAN JOSE 5/3;2449 $775,000
119 13TH (S), SAN JOSE;5/3;2463 $590,900
391 13TH ST (NORTH), SAN JOSE DUPLEX 4/2;2160 $439,900
484 14TH (N) STREET, SAN JOSE 3/2;924 $354,500
237 33RD (S) STREET, SAN JOSE 3/2;1148 $353,900
535 68TH AVENUE, OAKLAND 5/2/2107 $279,900
2268 80TH AVENUE, OAKLAND 4/2/1313219 $165,000
1463 81ST AVENUE, OAKLAND 3/1;900 $179,900
1746 96TH AVENUE, OAKLAND 3/1;1060 $141,466
812 105TH AVENUE, OAKLAND 2/1;884 $99,900
1820 105TH AVE., OAKLAND 3/1;1522 $259,900
1880 ANNE MARIE COURT, SAN JOSE 4/2;1434 $459,900
1728 BERRYWOOD DR, SAN JOSE 3/1;900 $279,900
14540 BLOSSOM HILL RD., LOS GATOS 4/2.5;2193 $999,999
2509 BORAX DRIVE, SAN JOSE3/2;1545 $546,000
426 CALIENTE DRIVE, SAN LEANDRO $239,900
437 CAMILLE CIRCLE #16, SAN JOSE 3/2.5;1307 $599,000
1012 CAMIELLIA DRIVE, ALAMEDA 3/2;1623 $659,900
2110 CORKTREE LANE, SAN JOSE 5/3;1772 $509,575
790 DIADEM DRIVE, SAN JOSE 3/1;1141 $285,000
1058 DURNESS PLACE, SAN JOSE 3/2;1238 $339,900
2802 EAST AVENUE, HAYWARD 5/3;3412 $525,000
2575 EASTON WAY #84 SAN JOSE $197,900
130-132 EASTWOOD COURT, SAN JOSE4/2;1493 $349,900
1401 EXCELSIOR AVENUE, OAKLAND; 3/1, 1200 $414,900
2466 GOLZIO COURT #4, SAN JOSE 2/1;798 $184,500
401 GRANT (S) STREET, SAN MATEO 3/1;1040 $664,900
2816 HIDDEN LANE, HAYWARD 3/2;1800 $519,900
3265 HILLS DRIVE (EAST), SAN JOSE 3/2;1496 $349,900
980 IROQUOIS AVENUE, LIVERMORE 3/2;1282 $299,900
6371 JOAQUIN MURIETA AVE #A, NEWARK 2/1.5;1132 $279,900
5510 JUDITH STREET, #1 SAN JOSE 2/1;810 $194,900
10090 KENILWORTH WAY, SAN JOSE 3/1;1024 $284,900
706 LAKEFAIR DRIVE, SUNNYVALE 3/2;1108 $459,900
3009 LA TERRACE CIR #70 SAN JOSE 2/1; 904 $314,900
3785 LAMOUREUX ST, SAN LEANDRO 3/2;1517 $379,900
4942 LEIGH AVENUE, SAN JOSE 3/2;1110 $498,900
2751 LONE BLUFF WAY, SAN JOSE 3/1.5;1075 $239,900
4536 LAS LOMITAS DRIVE, PLEASANTON 3/2;1249 $489,900
520 MACARTHUR AVENUE, REDWOOD CITY 2/1;1030 $399,900
1070 MARYANN DRIVE, SAN JOSE 3/1.5;1156 $545,000
19553 MEEKLAND AVENUE, HAYWARD 3/3;1332 $308,750
708 MINER ROAD, ORINDA 4/3.5;3557 $1,499,900
6223 MONADNOCK WAY, OAKLAND 2/1;957 $160,000
2861 MOUNT DIABLO STREET, CONCORD 3/2;1281 $239,900
1540 MOUNT SHASTA DRIVE, SAN JOSE 3/2;1198 $339,530
593 OLDBROOK COURT, SAN JOSE 4/2;1220 $299,900
ADDRESS LIST PRICE
1775 PANDA WAY #342, HAYWARD 2/2;900 $199,900
1260 PERMATA COURT, SAN JOSE 1/1;696 $164,900
3453 PISTACHIO DRIVE, SAN JOSE 3/1.5;1157 $174,900
30 POTEL TERRACE, FREMONT 3/2.5;1663 $513,900
75 RANCHO DRIVE, SAN JOSE 2/2;991 $199,900
2144 RIO GUACIMAL COURT, SAN JOSE 3/1.5;1180 $190,000
1625 SAN ANTONIO ST (EAST), SAN JOSE 2/1;625 $224,900
130 SAN FERNANDO (EAST) #402, SAN JOSE 2/2;1622 $543,200
2827 SAN JUAN BLVD., BELMONT 3/3;2380 $630,500
1617 SCOTTY STREET, SAN JOSE 3/1;960 $244,900
335 SENTER ROAD, SAN JOSE 3/2;1473 $427,500
125 SERRAVISTA AVENUE, DALY CITY 4/3/2080 $742,900
1196 SHORTRIDGE AVE., SAN JOSE; 2/1.25, 1672 $339,000
374 SPARLING DR, HAYWARD 3/2;1747 $259,900
5503 SPINNAKER DR #4 SAN JOSE 2/1; 798 $190,000
5054 SNOW DRIVE, SAN JOSE 3/1;1104 $274,900
260 SUNSET BLVD. #39, HAYWARD 2/1.5;1016 $164,900
1436 TAPER, SAN JOSE 4/2.5;1728 $399,900
1451 TERILYN AVE, SAN JOSE 3/2;1178 $319,900
5836 THORNTON AVENUE, NEWARK 4/2;1503 $429,900
1505 TURANDOT COURT, SAN JOSE 2/1.5;988 $227,900
2835 WILSON COMMON, FREMONT 3/2.5;1748 $469,900
646 WOODLAND TERRACE, SAN JOSE 4/3;2232 $599,900
2271 WOODRANCH ROAD, SAN JOSE 5/3;2449 $775,000
NCalCCIM Silicon Valley District Meeting
NCalCCIM Silicon Valley District Meeting
Silicon Valley Update, Sunnyvale becomes a developerThis meeting’s speakers will give you an excellent picture of what is going on in Sunnyvale and the Silicon Valley and will help you identify economic and commercial real estate trends.Connie Verceles – Sunnyvale Economic Development Director. Connie will give an update on the exciting changes going on within Sunnyvale. Some of the topics covered will be the new Sunnyvale Town Center mall with over 1 million square feet of retail, 275,000 sq feet of office and 292 residential units in a huge mixed use development. Other topics will include over 3 million sq feet of office development projects in Moffett Park and the closure of Onizuka Air Force station and possible uses for it.Kara LaPierre – Joint Venture Silicon Valley Executive Director of the Economic Development Alliance. Kara will speak about the region’s economy, what the economic development community is doing, and what it all might mean to the commercial real estate industry. Most South Bay cities are part of Joint Venture Silicon Valley and you will learn about the issues affecting the South Bay economy.Coffee will be served and the meeting is free of charge.
WHEN
Tuesday, September 23, 2008 8:30 AM - 10:30 AM
WHERE
UCSC Extension-Sunnyvale
1180 Bordeaux Drive
Sunnyvale, CA
View Event Summary
View Event Agenda
RSVP
Monday, September 22, 2008
Silicon Valley Update, Sunnyvale becomes a developerThis meeting’s speakers will give you an excellent picture of what is going on in Sunnyvale and the Silicon Valley and will help you identify economic and commercial real estate trends.Connie Verceles – Sunnyvale Economic Development Director. Connie will give an update on the exciting changes going on within Sunnyvale. Some of the topics covered will be the new Sunnyvale Town Center mall with over 1 million square feet of retail, 275,000 sq feet of office and 292 residential units in a huge mixed use development. Other topics will include over 3 million sq feet of office development projects in Moffett Park and the closure of Onizuka Air Force station and possible uses for it.Kara LaPierre – Joint Venture Silicon Valley Executive Director of the Economic Development Alliance. Kara will speak about the region’s economy, what the economic development community is doing, and what it all might mean to the commercial real estate industry. Most South Bay cities are part of Joint Venture Silicon Valley and you will learn about the issues affecting the South Bay economy.Coffee will be served and the meeting is free of charge.
WHEN
Tuesday, September 23, 2008 8:30 AM - 10:30 AM
WHERE
UCSC Extension-Sunnyvale
1180 Bordeaux Drive
Sunnyvale, CA
View Event Summary
View Event Agenda
RSVP
Monday, September 22, 2008
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