If you've been following the news you've probably heard that China revaluated their currency, the yuan. There has been much speculation about the direct effects of this move, such as rising interest rates here in America. How does this effect the California housing market?
I personally think people here in California will start refinancing if they haven't already. My parents have refinanced to 4.25 for 15 years on two of their properties here in California. Lately in our junk fax bin at work, I've seen faxes stating California refinance quotes as low as 1%. Wonder why all of a sudden tons of these refinancing faxes have been coming through on 3 of our fax lines. A good example of someone that probably should refinance is someone with a adjustable rate mortgage. Why you say? What if the fed decides to bump the interest rate to 7% or 8% next year. That's right the people with a adjustable rate. One of my uncles happens to have one of these deals and my mom being a banker for 28+ years had suggested that he refinance his home here in California and get that lower rate before things get nasty. This was two years ago and he still has not refinanced his home. Just whip out a mortgage calculator and do the math, a 2-3% jump can really make a drastic difference. Uncle, if you're reading this I think you should refinance too, especially because it seems like you do plan on living in that house for good.