Home prices down record 11%, 13% for San Francisco

Home prices have declined from 10.7% in average nationwide between January 2007 & January 2008. This is the biggest drop since the index has been created in 2000.

Thus, this is the best time right now to consider investing in real estate, whether in the Silicon Valley or in other states, as both prices and rates are low.

The question now that people often ask me: When will it hit the bottom? People want to invest while the price will be the lowest.

Let's not forget that we are in an atypical situation, where the market has meltdown. A real estate investor should not focus on waiting for the bottom, but investing right now as conditions are more than friendly. Also, you have to think about the mortgage market, and see what loan program will fit you the most.

You have questions about real estate investment? Thinking about purcasing a home in Palo Alto or in the Silicon Valley? Feel free to contact me and let's discuss about the possibilities.

(Source: CNN Money)

US Treasury Secretary Henry Paulson blaming the lack of financial knowledge

US Treasury Secretary Henry Paulson is stopping by the Bay area on Thursday, where he will meet with Bay Area leaders to push homeowners to get educated about how the financial industry works.

US economy has encountered a lot of problems these past few months with the sub-prime crisis, a historically low dollar and the stock market struggling meanwhile. Treasury Secretary Henry Paulson acknowledges that the sub-prime mortgage mess continues to be the biggest drag on the nation's economy.

He says nevertheless that both bankers and borrowers are to blame.

"What got us here was some very bad lending practices, some unethical lending practices, financial fraud. But also the other issue is there are a good number of people who signed a mortgage contract and didn't understand it," said U.S. Treasury Secretary Henry Paulson.

The best way to understand how mortgages work and how they fit into your overall finances is to contact me and schedule a free mortgage planning session.

(source: ABC7News)

HUD Raises FHA Loan Limits

At last, after much anticipation, HUD finally published the new FHA loan limits for the high cost areas. For more detail info, check out this site. Since the new loan limits are based on the median housing pricing, the actual loan limits vary by county in which the property is located. As for the direct impact on consumers, we are still waiting for the lenders to "accept" the FHA limits, and implement them both in their program offerings as well as the backend support systems. In other words, if you are looking for a FHA loan right now, you will not see the new loan limits in place yet. I will update you as we get updates from the lenders.

Now, do not confuse this with conventional conforming loans. OFHEO has not weighed in. Once they do, FNMA & FHLMC will make their announcements, and then lenders will make theirs. I do not know about potential pricing hits, and will certainly keep you updated as things progress.