The Latest:

Well, everyone's wondering when, not if, the low interest rates will come to an end. The Fed's Bernanke still insists he'll hold them down through yearend 2014, but an increasing number of folks are questioning how likely this will be in the real world, particularly when the economy really gets into a solid recovery mode. It's showing continuing signs of a recovery, the economy in general and housing in particular.
However, in stats just released the past few days, the 'recovery', while still moving along, has changed to an even slower pace than in the prior quarter.
So where does that leave you if you're making a rate-based decision? Well, 30 year fixed rates again dropped this past week--to 3.88%. My opinion: they're likely to remain at or under 4% for the remainder of the summer, at least until Labor Day. I'm even willing to hazard a guess that they well might stay in this range through the balance of the year. But, come next spring, especially if the recovery picks up steam, look for a gradual increase through 2013.
Things that could alter these projections: failure to alleviate the Student Loan debt load--huge and getting worse daily; and the outcome of the elections in November.

What to do? If you're a buyer, as I've said before, DON'T DELAY! The quarter point increase that you get hit with is the $25-100,000 reduction in purchasing power (depending on your income/assets) that you'll have to figure how to deal with. If you're a seller, take advantage of the market of lots of cash in hand buyers and low rates and get your house on the market and into the competition. We're seeing homes, if priced right & "done", going fast and showing, in some cases, multiple offers again! Take advantage now!Call: Peter: (415) 279-6466 or Jane: (415) 531-4091.