The Real Estate Pulse

With San Fernando Valley Real Estate continuing to plummet many San Fernando Valley residents are wondering how the U.S. Federal governments takeover of Fannie Mae and Freddie Mac will affect the value and sales of homes for sale in the San Fernando Valley…

Well one of the desired effects from the “Frannie” takeover was lower interest rates for home buyers and as of this week interest rates for 30 year fixed rate mortgages are down about 1/2 a percentage point as of this post.

So with interest rates down are more people buying San Fernando Valley Real Estate?

Not necessarily.

While the prices of homes for sale in the San Fernando Valley may be down, more and more potential home buyers are discovering that it’s getting harder and harder to qualify for a home loan in the San Fernando Valley these days.

Most lenders are now requiring a 15% down payment of the purchase price of a home for sale in the San Fernando Valley up from 10% from a while back and I’m starting to wonder if we’ll ever see any interest-only loans again?

I can tell you right now most people will be unable to afford the 15% down payment for San Fernando Valley real Estate. If you can find a home for sale in the San Fernando Valley for about $300,000, you’ll still have to come up with a down payment of $45,000.00!

Fannie and Freddie Mac now have the guaranteed backing of the U.S. Federal Government and in a nutshell they’re making sure that the money they loan out these days has a very high probability of getting paid back. Sounds like good business to me but how it affects the San Fernando Valley Real Estate Market remains to be seen.

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