Ok, wow the drama in the mortgage industry just keeps getting juicier! Here is what I know - the subprime market is non-existent, stated income is non-existent unless you are getting an Acorn loan or a VA loan which is backed by the government. Wells Fargo just raised their interest rate on jumbo loans. A jumbo loan is anything over $417K. In our market, that is 90% of everything listed in this area. And, the feds didn't raise the interest rates yesterday.
Ok, can you still get a mortgage loan? Yes, if you have good credit, a down payment and a low debt to income ratio. And frankly folks, if our standards have been tight all along we would not be in this mess. Back in the day, there were just to many people who got mortgages who really couldn't afford them.
And Jim Cramer is way to dramatic. Give it rest Jim and take your meds! Check it out at www.cnbc.com/id/20145656
As for our little bubble - Albany, Berkeley, Piedmont and Rockridge the prices have not changed dramatically, days on the market seem to be a bit longer but we are still seeing multiple offers on many houses in these areas. And yes, buyers have a little more negotiation power in these areas, and a lot more in other areas like in the transitional areas of Oakland.
I can't predict the future but that is what I know today.
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