California Housing Affordability Slightly Improved Over 2014’s Third Quarter

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Blue Home Loans, Inc. comments on a recent report from the California Association of Realtors ® and offers some insight for prospective CA home buyers.

A recent report from the California Association of Realtors ® (C.A.R.) showed a slight improvement for California housing affordability over 2014’s third quarter. Unfortunately, the survey also showed a dip in affordability compared to a year ago. California full-service mortgage company, Blue Home Loans, Inc., has been helping clients to gain the maximum amount of savings on their home loans for many years and now takes a look at the recent report and gives some advice for those who have home loan plans for the near future.

The California Housing Affordability report that was released on February 12th, 2015 states, “California housing affordability improved from third-quarter 2014 but dipped when compared to a year ago, as lower interest rates failed to offset higher home prices, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today. The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in fourth-quarter 2014 edged up to 31 percent from the 30 percent recorded in the third quarter of 2014 but was down from a revised 32 percent in fourth-quarter 2013, according to C.A.R.’s Traditional Housing Affordability Index (HAI). This is the seventh consecutive quarter that the index was below 40 percent and is near the mid-2008 level of 29 percent. California’s housing affordability index hit a peak of 56 percent in the first quarter of 2012.”

Blue Home Loans, Inc. explains that housing affordability improved in some counties while slightly worsening in others. For the fourth quarter of 2014, areas that saw the most improvement in housing affordability quarter over quarter were Santa Barbara, Contra Costa, Napa, and Los Angeles, while the five most affordable counties in California were Kings (64 percent), San Bernardino (57 percent), Tulare (56 percent), Madera (56 percent), Merced (53 percent), and Fresno (53 percent).

While affordability could definitely stand to improve further, any improvement at all is a good thing for California home buyers. The current upward trend in California mortgage rates might give pause to those who are considering purchasing a new home. However, while rates are off the lows seen this January, the national average for a 30yr fixed rate mortgage is still below 4.0% and there is still some hope that the trend could reverse and mortgage rates will bounce back.

In either case, those who have decided to take the step towards home ownership will want to act fast in order to save the highest amount on their homes. The mortgage experts at Blue Home Loans can help those who are looking for the right loan to find just what they need. As a full service mortgage company, Blue Home Loans loan officers can help potential borrowers figure out which loan type would best suit their financial needs and home ownership goals, walk them through the application process and even help them find the right Realtor.

Co-owner of Blue Home Loans, Brandon Blue, says, “I love the personal satisfaction that I receive when I am able to save my clients both time and money--getting them the best deal I possibly can on their home loan. Whether you are looking to purchase your dream home, or want to save money on your existing home, feel free to give me a friendly phone call. I promise that you will not be given some cheesy sales pitch, and that I will listen to your mortgage needs without utilizing any high pressure sales tactics.”

For more information on how Blue Home Loans can help California home loan borrowers get approved for their home purchase loan or refinance quickly, please visit BlueHomeLoans.com or call 1-888-929-BLUE (2583) to speak with an experienced mortgage professional.

California Bureau of Real Estate -- BRE #01938557 NMLS #1162386

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