American Pacific Mortgage Information

Please enjoy this quick update on what happened this week in the housing and financial markets.

The Fed raised policy rates this week by .25%, as was widely anticipated. The increase could actually help mortgage rates by fighting inflation.
Falling oil prices continue to help keep inflation at bay. The Fed viewed the low prices as temporary, so it did not affect their rate policy decision.
The latest jobless claims numbers were down, suggesting sustained labor market improvement. A strong labor market is good for the housing market.

Housing starts surged 10.5% in November, continuing a trend of housing market improvement. Starts of single-family homes reached a nearly eight-year high.
Building permits, a bellwether of construction in coming months, were also up. Permits rose 11% from October and were up 13.4% year-over-year in November.
Some builders were slightly less optimistic about the housing market in December. However, tight inventory and high prices continue to induce buyers.

What do you call people who are afraid of Santa Clause?




Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.

Derek Bobadilla
American Pacific Mortgage
Mortgage Expert / Loan Officer
NMLS 820270, CAL BRE 01909648
(562) 572-7344

Licensed by the Department of Business Oversight under the CRMLA.


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American Pacific Mortgage – 1740 Gillette Road Suite 105, Pomona, CA 91768

Quieting Your Soul by Charles Stanley

Quieting Your Soul
Psalms 131:1-2 Psalms 131:1-2
1 O LORD, my heart is not proud, nor my eyes haughty; Nor do I involve myself in great matters, Or in things too difficult for me.
2 Surely I have composed and quieted my soul; Like a weaned child rests against his mother, My soul is like a weaned child within me.

As this season of Advent begins, it is wise to reexamine our hearts with regards to prayer. Do you hurry through your quiet time so you can get to other things? If so, consider the values Jesus modeled for us in His practice of setting apart time to spend with His Father.
Solitude. Though the Lord was constantly surrounded by people as He tended to their needs, He also understood His own need for seclusion. Often, after an intense period of ministry, He would retreat from the crowds—and even His disciples—to pray in private.
Safeguarded time. No matter what else was going on, Jesus made it a point to protect periods of time so He could rest in the Spirit, focus on His relationship with the Father, and build up His physical and emotional strength. Even when people were clamoring for Him, Jesus made it a priority to safeguard this time, knowing that His ministry would flow from it.
Stillness. What does it means to be still? Psalms 46:10 calls us to stillness with these words: “Cease striving and know that I am God.” To learn this perpetual inner peace, periodically stop everything you’re doing, and simply let your soul become aware of the Holy Spirit’s presence. In today’s reading, David described it as the state of a “weaned child” who is at perfect rest and happy just to be in his mother’s arms.
If you make these a priority, you will reap tremendous benefits. Doing so may seem challenging. But when you quiet your heart before the Lord, you’ll discover how much you need the peace of His presence. It is a priceless gift.

October prices Decreased! California Market

For release:
November 17, 2015

California home sales and price decrease in October as affordability crunch impacts housing market

– Existing, single-family home sales totaled 403,510 in October on a seasonally adjusted annualized rate, down 5.1 percent from September and up 1.3 percent from October 2014.

– Statewide sales were above the 400,000 mark for the seventh straight month.

– October’s statewide median home price was $475,990, down 1.3 percent from September and up 5.7 percent from October 2014.

LOS ANGELES (Nov. 17) – California’s housing market softened in October as both statewide sales and median price contracted from the previous month and is still on target to meet forecast projections, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

Home sales exceeded the 400,000 level in October for the seventh consecutive month and posted higher on a year-to-year basis for the ninth straight month. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 403,510 units in October, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide sales figure represents what would be the total number of homes sold during 2015 if sales maintained the October pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

The October figure was down 5.1 percent from the revised 425,120 level in September and up 1.3 percent compared with home sales in October 2014 of a revised 398,510. The year-to-year increase was the lowest since January 2015 and was significantly below the six-month average of 9.7 percent observed between April 2015 and September 2015.

“The slowdown in October’s home sales could be attributed to the financial turmoil and global economic uncertainty that took place in August and September, as some prospective buyers took a wait-and-see approach,” said 2016 C.A.R. President Ziggy Zicarelli. “With job growth increasing the most since late 2014 and interest rates remaining below 4 percent, the demand for housing should continue to grow at a modest pace. Statewide sales are on track to finish the year with a mid-single-digit increase from last year.”

The median price of an existing, single-family detached California home slipped 1.3 percent in October to $475,990 from a revised $482,150 in September.  October’s median price was 5.7 percent higher than the revised $450,460 recorded in October 2014. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

“Housing affordability is an issue in many parts of California, and the impact it has on sales varies from region to region. In the Bay Area, a persistent shortage of homes for sale put upward pressure on housing prices and is now presenting significant affordability challenges to home buyers in the region,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “With home prices in the Bay Area averaging more than 7 percent higher than a year ago, we’re now seeing the negative effect on sales due to low housing affordability as higher prices have put homebuying out of reach for many potential buyers.”

Other key points from C.A.R.’s October 2015 resale housing report include:

• While sales continued to improve from last year at the state level, the number of active listings continued to drop from the previous year. Active listings for California dropped 5.6 percent from September and decreased 7.6 percent from October 2014.

• While sales were slightly higher from a year ago at the state level, the number of active listings continued to drop from the previous year. The October Unsold Inventory Index remained at 3.7 months for the third straight month, unchanged from September and down from 3.8 months in October 2014. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered typical in a normal market.

• The median number of days it took to sell a single-family home increased in October to 35.5 days, compared with 32.6 days in September and 38.7 days in October 2014.

• According to C.A.R.’s newest housing market indicator which measures the sales-to-list price ratio*, properties are generally selling below the list price, except in the San Francisco Bay Area, where a lack of homes for sale is pushing sales prices higher than original asking prices.  The statewide measure suggests that homes sold at a median of 98.2 percent of the list price in October, up from 97.7 percent at the same time last year. The Bay Area is the only region where homes are selling above original list prices due to constrained supply with a ratio of 102.2 percent in October, up from 101.2 percent a year ago.

• The average price per square foot** for an existing single-family home was $237 in October 2015, up from $231 in October 2014.  Price per square foot at the state level has been stabilizing in the last few months as the statewide median price began leveling off and slowing to an average increase of 1.4 percent in the past three months.

• San Francisco had the highest price per square foot in October at $778/sq. ft., followed by San Mateo ($745/sq. ft.), and Santa Clara ($572/sq. ft.).  The three counties with the lowest price per square foot in October were Siskiyou ($115/sq. ft.), Madera ($120/sq. ft.), and Kings and Tulare both at $121/sq. ft.

• Mortgage rates were unchanged in October, with the 30-year, fixed-mortgage interest rate averaging 3.80 percent, down from 3.89 percent in September and from 4.04 percent in October 2014, according to Freddie Mac.  Adjustable-mortgage interest rates also were essentially the same, averaging 2.56 percent in October, down incrementally from 2.59 percent in September but up from 2.41 percent in October 2014.

Profiting from Trials

James 1:2-8

My brethren, count it all joy when you fall into various trials, knowing that the testing of your faith produces patience. But let patience have its perfect work, that you may be perfect and complete, lacking nothing. If any of you lacks wisdom, let him ask of God, who gives to all liberally and without reproach, and it will be given to him. But let him ask in faith, with no doubting, for he who doubts is like a wave of the sea driven and tossed by the wind. For let not that man suppose that he will receive anything from the Lord; he is a double-minded man, unstable in all his ways.

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Market Update for October

Transitory periods in the market are common this time of year, and after a persistent period of steady year-over-year climbs in sales metrics, recent low national numbers have not fulfilled what many predicted. But on a positive note, jobless claims have also been at low levels, coming in as the lowest number since 1973. As always, every market and situation is unique, so some numbers seen in national trends may not always line up with local markets.

New Listings were down 3.7 percent for Single Family homes but increased 0.4 percent for Townhouse-Condo properties. Pending Sales increased 23.4 percent for Single Family homes and 23.1 percent for Townhouse-Condo properties.

The Median Sales Price was up 3.0 percent to $582,000 for Single Family homes and 7.4 percent to $379,500 for Townhouse-Condo properties. Months Supply of Inventory decreased 31.6 percent for Single Family units and 37.1 percent for Townhouse-Condo units.

Interest rates are an area to pay attention to as rate hikes are widely expected before the year ends. The Federal Reserve Bank has skipped two opportunities to raise rates this fall, but the final meeting in December will likely include a minor rate hike. Although we are headed into a slower time of year, as housing activity goes, there are still many nuggets of optimism to mine from monthly figures.