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According to Freddie Mac, 30 year fixed mortgage rates hit a 50 year low last week, averaging 4.69%.  Already low rates have been made lower since the debt crisis in Europe became the top news.

Take a look at this graph , which shows fixed rates back to 1963, and you can see that rates have generally trended down since the mid 1980’s. So with low rates and prices at about 2003 levels the question is “how are homebuyers reacting”? 

As shown here from the Campbell Inside Mortgage Finance Monthl Survey  , first time homebuyer traffic dropped in May after peaking in April.  Of course, the end of the tax credit on April 30th played into this drop as well.  However, thanks to its own tax break, California fared better than the country overall in terms of first-time homebuyer activity, the survey found. The California index for first-time homebuyer traffic managed to stay relatively flat in May at 49.4, California enacted its own $10,000 credit for first-time homebuyers on May 1, the day after expiration of the federal tax credit.

As a percentage, investor buyers seem to be holding steady, while current homeowner buyers have increased their activity at the same time the percentage of first time home buyers is dropping.

The California Association of Realtors (C.A.R.) Affordability Index reveals that the opportunity of homeownership is available to 66% of Californians.

With the complexity in today’s real estate market you will benefit from the advice and guidance of an experienced and knowledgeable real estate professional.  I’m always available to answer your questions or discuss your concerns.  Just text, call (650 325 7877) or email me for a prompt response.

If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information,  market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240