Redwood Trust, the first investment trust to offer mortgage-backed securities since the financial collapse of 2008, plans to sell $576.4 million in residential mortgage-backed bonds. “That’s on top of the $1.7 billion tied to home mortgage loans it has already issued this year, twice the total sales covering 2010 and 2011” according to data compiled by Bloomberg.
Redwood specializes in jumbo loans, usually over $625,000 in high-end areas, that are not backed by federal agencies such as Fannie Mae, Freddie Mac and the FHA. If investors are looking for another sign that the housing market is recovering, this is it. CEO Martin Hughes says that Redwood’s goal for 2013 is “to acquire and securities approximately $7 billion of residential mortgage loans. Record low interest rates are providing additional affordability, which should protect against price declines absent a second recession”.
Fitch Ratings is said to be giving most of the $576.4 million of Redwood’s securities its triple-A stamp of approval.
Source: Andrew Ross, San Francisco Chronicle, Mar. 16, 2013
The San Diego Association of Realtors reports that rising housing prices are injecting a new energy into the move-up market for San Diego County home buyers. The price of a single-family home went up 14% for the first time in two years. The cost for both attached and detached residences climbed 18%. President Linda Lee advises prospective buyers to get prepared before starting that home-search. Be pre-qualified with a lender, so you know exactly what you can afford, before you become emotionally attached to a property that is not in your price range.
We are #1 in sales volume again in San Diego! $3.976 billion in sales, 2012 – San Diego. $10.5 billion in total company sales! Congratulations to the PruSoCal Realty Team!!
Linda Lee, Board President of the San Diego Association of Realtors, writes that San Diego County is at the onset of a healthy real estate market.
“People were sitting on mortgages with negative equity, could barely make their payments, and were doing all that they could to hold on to their homes. Those who could not make their payments were negotiating with the bank on loan modifications.
The result was a deluge of foreclosures and short sales. Banks trying to unload their newly acquired real estate put many homes back on the market at very low prices. Lower prices fed back into the short sale environment and the cycle continued.
But in recent months, I have seen homeowners sell their homes and buy new ones.
Prices have risen enough that many people who delayed doing this for years are finally able to move up into a nicer home or down into a more affordable one.
This is good for our industry.”
The Daily Transcript: San Diego Source