The Real State of Real Estate in Washington State - through the eyes of a Loan Officer
Firstly, a quick note of appreciation for our very own Denice Rochelle. The stoic Eleanor Roosevelt (whom you remind me of with your spirit of giving and willingness to help others ) said, ‘Yesterday is history, tomorrow is a mystery, and today is a gift; that’s why they call it the present.’
Thank you Denice for the gift of your time on our behalf, shedding light on our corner of the Real Estate market. The Specificity of your focus brings it home for us in a truly meaningful way.
Speaking of the past, present and future of our market, what the heck is going on in the mortgage world? Well, I’m glad you asked. Thank you for allowing me to be part of your morning (afternoon/evening/wee hours) reading.
The national ‘credit crunch’ actually applies to our market and the focus of this issue’s newsletter in a much more tangible way than the national outlook on Real Estate.
“Huh?”
What I mean is, the nay-saying media’s spin on the national devastation in Real Estate values just plain doesn’t apply to our local market (Denice, back me up here).
In contrast, the mortgage market has been affected more directly because the majority of lenders licensed in our state sell the loans on the national secondary markets. Because of this, our local loans are directly affected by the state of the market generally. There are exceptions to any rule but generally, that’s how it works.
So if you’re saying to yourself “What about this $1M condo, should I really be buying now?”
I don’t know of a single savvy Real Estate investor who would let a ‘right-ing’ of the mortgage market get in the way of making a right decision, regardless of the price range. Ultimately that’s a question for Denice (to buy or not to buy) and if the answer is yes, then we sit down to see what programs are available.
Does financing look the same as it has over the past few years? No, it’s changed and we’re going to structure things a little differently than we have been.
That’s all I really have to say about that.
Speaking directly to interest rates, a loan that meets the ‘conforming limit’ (currently capped at $417,000) is generally at a [slightly] lower interest rate than a loan amount that is non-conforming (over the $417,000 cap). This difference in rate based on the conforming loan limit is an historic trend we have found ourselves following once again.
So to re-cap: The sky is not falling and the Greater Seattle market is not going to pieces.
Have we even considered the net job growth that is projected for the next ten years? The affect of that on growth for our state? The real burning question should be, “Where are all those people going to live?!?” Wouldn’t that be GOOD for Real Estate?
Granite Falls just may become part of Greater Seattle after all.
In all seriousness, those of you that are really in this market I’m sure are more focused on the value of your investment than on the interest rate (which is enough in and of itself for a separate article). If you’re concerned about value, that’s a question for Denice; if you’re concerned about that interest rate, it’s time for us to chat. How about over coffee - I’m buying!
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James Wirth is a Mortgage Planner licensed by the Washington State Department of Financial Institutions under Loan Officer License Number 510-LO-34536. His Blog can be found at http://mymortgageplan.blogspot.com and he can be reached directly at:
James Wirth
Landover Mortgage
Cell/Direct: (425) 501-4749
Office: (425) 977-2244 Ext. 1002
Fax: (866) 215-1749Email: Jameswirth@landovermortgage.com
Web: http://www.landovermortgage.com/jameswirth/