Grouse Ridge to Spaulding Lake…Quite a Ride

The weekend before last I was lucky enough to do another ride in the Grouse Ridge area.  This time we did a shuttle ride from the Grouse Ridge Lookout (Elev. 7,707) down to the Spaulding Lake Trail, ending at the parking area just below the Emerald Pools trail head.  The riding was amazing.  It ranged from technical and rocky, to playful and rocky, to rolling and smooth.  As you descend from the upper elevations the change in vegitation is great to watch too. Views include the Sierra Buttes, Old Man Mountain, The Black Buttes, Spalding Lake and the most scenic outhouse I had ever seen.  Seriously, just look at the pictures. 

If you want to do this ride, check out the map linked below. 

http://www.fs.fed.us/r5/tahoe/documents/rec/grousemap.pdf

     

   

Fannie / Freddie Taken Over, Rates Dip Further

Over the weekend, mortgage giants Fannie Mae and Freddie Mac were taken over by the federal government.  They are now under the control of the Federal Housing Finance Administration and receiving funding from the Treasury. 

These two previously private (non-government) companies play a central role in the mortgage and housing markets by purchasing residential mortgages.  This purchasing allows banks to make make loans and buyers to buy. 

However, significant losses due to higher delinquency rates and falling home values pushed Fannie Mae and Freddie Mac near the brink of insolvency.  If they were to fail, the already battered housing market would almost certainly crash and drag the economy down with it.  The government could not let this happen, hence the takeover and funding.   

The immediate impact for consumers is lower mortgage rates.  Today’s 30 year fixed pricing is down near 6.0% with no points. Buyers should take note of this because a month ago rates were nearly .75% higher.  On a $250k loan, this amounts to almost $125 month.

Looking down the line, it is harder to tell what is in store.  Underwriting guidelines could change, but this will not happen over night.  For more info on how the takeover could affect you take a look at this New York Times article by Ron Lieber. 

http://www.nytimes.com/2008/09/08/business/08consumer.html?ref=worldbusiness

Anecdotal evidence suggests that Tahoe market is picking up…

Anecdotal evidence suggests that real estate and mortgage activity in the Tahoe / Truckee market has picked up.  My lead volumes have jumped significantly in the past couple weeks and I am hearing the same from a number of other mortgage and real estate professionals in the area.  Up calls and walk-ins have certainly increased.

It may be the case that prices have come down to the point that value has become evident and buyers are coming off the fence.  Or it could just be an short term blip with no real explanation.  Only time will tell.  Regardless, it feels different now than it did a month ago.

Mortgage Rates Improving as Stock and Oil Prices Fall…

Mortgage rates are improving as stock and oil prices fall.  This is not surprising – rates usually rise and fall with stocks – but it is worth noting that rates are now at the lowest levels in over a month.  30 year fixed rate pricing is currently in the neighborhood of 6.25% with no-points.  

On Thursday the Dow dropped 350 points.  Then Friday’s Job report placed unemployment at 6.1%, the highest figure in 5 years.  Oil prices are coming down as current demand slips and future demand is projected to slip. 

Lower oil prices will help the economy, at least in the short term.  This is the case for a couple reasons.  First, lower oil prices will free up consumer dollars for spending, or even saving.  Second, they will help tame inflation. This will allow the Fed to keep borrowing costs down. 

If you want to see where interest rates are headed, oil is good indicator, at least for the time being.