Busting Mortgage Myths: Between Market Spins and The Real Estate Pulse

Hold onto your wallets, Californians! Today’s bulletin will traverse the media’s spin cycle, where sometimes economic seasons make things look chillier than they are. But fear not; California Platinum Loans is here to warm your understanding with some heated insights. Grab your morning brew, and let’s dive in.A Media Mirage on Housing Appreciation?

A Media Mirage on Housing Appreciation?

The financial arena echoed with a slight tremor yesterday, with mortgage bonds experiencing turbulence. If we were to take a leaf out of an aviation book, we’d say, “Expect some turbulence, but keep your seatbelts fastened for a smooth landing.” Why, you ask? Despite the negative rumble about housing, the actual value of homes continues to appreciate.

So, here’s a spin tale: Black Knight recently released a report. And while Daniel decided to pick the non-seasonally adjusted number (up by a mere .23%), it translates to roughly 3% inflation if we delve deeper. Putting it in layman’s terms, for those who put down a mere 10%, that’s a handsome 30% return on their investment. And here’s the kicker – they interpreted this as an indicator of an impending decline in home values. Aren’t statistics fun? One can show a storm on the horizon, while another reveals sunny days ahead.

The Fed’s Song & Dance: What’s Next on The Playlist?

Have they ever tried reading tea leaves? Interpreting the Fed’s next move feels a lot like that. As the grand September 20th meeting looms, there’s anticipation in the air. Will they hike? Will they pause? If only we had a crystal ball!

But here’s a silver lining. Loretta Mester from Cleveland’s Fed and Philly’s Patrick Harker have sprinkled some insights. It’s like a sneak peek into the upcoming blockbuster, where inflation and rates are leading. The overarching message? The Fed no longer relies on past data but gauges the road ahead.

Of Oil Prices and a Slippery Slope

Ah, oil! The lifeblood of our cars and, sometimes, the bane of our wallets. Recent data shows a 10% hike, pushing oil to $87 a barrel. This hike comes as Russia and Saudi Arabia play a little complicated with their production cuts. And what does this mean for our dear friend, gasoline? The prices remain stable, hovering around $3.80 per gallon. But, with the strategic petroleum reserves dwindling, any hike in oil prices could trigger a surge at the pump.

To wrap up today’s bulletin with a neat bow, while mortgage bonds took a slight hit, the true essence of the market showcases promise and resilience. The housing market remains robust, the Fed is looking ahead, and oil prices… well, keep an eye on your gas tanks.

Stay optimistic, financially savvy Californians! Plenty of opportunities are on the horizon between the ebb and flow of the market. Until next time, keep your real estate compass pointed towards prosperity, and remember, California Platinum Loans has your back in every twist and turn!


Need Room For the Youngest and Oldest? Add An Additional or Accessory Dwelling Unit With A Home Renovation Loan To Fit Your Youth and Senior Needs

Have you heard about ADUs? You may know them by another name, like “extra room” or “granny flat.” ADU stands for “accessory dwelling unit.” When you add another room to your primary residence, or add a separate structure on your property, each of these home additions qualifies as an ADU.

Can an ADU boost your home’s value?

In many cases, yes, adding an accessory dwelling unit could increase your property’s value. Not every home improvement project increases your home’s resale value. For example, studies by the National Association of Realtors (NAR) indicate that projects like luxury bathrooms or specialized kitchens don’t add much, if anything, to a home’s value when it comes time to sell. For example, glamorous bathroom amenities like whirlpools and walk-in waterfall showers, only return about half of what they cost when your home is sold.

If you add an ADU, either as part of your primary residence or elsewhere on your property, it could add significant resale value to your home. One study from Oregon showed that homes with ADUs gained up to 51% on average in resale value.

What are uses for ADUs on your property?

With changing families these days, sometimes ADUs are more than just “granny flats.” You may have younger family members who will continue to live at home while they attend school and work. You may have older extended family members who you want to continue to share your home.

Other uses for ADUs include rental properties, or as a location for live-in caregivers for elderly or disabled family members.

How can you pay for an ADU?

You can get a home equity loan (HEL) or a home equity line of credit (HELOC) to pay to add a room or structure to your property to accommodate additional family members. Other options to pay for the ADU include a cash out refinance of your existing home loan. You may even be able to add an ADU that you could rent for additional income — but don’t count on future rental income from a unit that isn’t completed to qualify for financing. Work with an experienced independent mortgage broker and home loan professional at California Platinum Loans, who can guide you through the process of financing your ADU and making a real change to your property to benefit younger or older family members.