Today Show's Real Estate Minute

We love this regular feature on the Today Show. As a matter of fact, we're working on doing one for Gilroy. Stay tuned!

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Gilroy is a Great Place to Live

Gilroy is a great place to live. Here’s another reason why:

The Gilroy High School Choir is led by Phil Robb.

Phil has been a part of the Gilroy Unified School System for over 20 years and is considered a community treasure by anyone who has ever met him, seen him at work, been directed by him, or knows of him.

Phil came to the Gilroy Rotary Club this week and talked about the fabulous trip he was able to organize, for this year’s choir to perform at Carnegie Hall. As always, his leadership was inspiring. He is such a humble man of such great accomplishment that it is an honor for us to know him.

When you’re looking for a place to live, pick a place where people like Phil Robb live and work!

Links to trip videos:

Choir at Carnegie Hall
Choir singing in Harlem
Choir with Composer
Choir Rehearsal for Carnegie Hall

All videos are the property of The Gilroy Dispatch – which is another reason why Gilroy is a great place to live.

Mortgage Market Update

Team Patereau's in-house mortgage agent at Intero Real Estate, Dario Liberati, brought us up to date on the mortgage market. Here's his report:

Last week mortgage bonds had their worst one day performance since October, losing an astounding 206 bps. So what happened and what's next?

The main culprit for the selloff is SUPPLY. The Treasury has literally been printing money by way of Treasury auctions to pay for the massive spending. These hundreds of Billions of dollars of new Bond supply have to be absorbed by the market. The additional supply literally weighs on the entire Bond market and drags prices lower.

Also, when you think of SUPPLY, consider all the refinancing we have been doing and that those loans have been bundled, packaged and sold on Wall Street. This additional SUPPLY has now started to hit the secondary market as those loans are now getting sold. While the Fed has been a buyer, they simply cannot buy enough to balance all the selling.

Economics 101: Anytime supply exceeds demand, prices will move lower. As prices move lower, yields rise. That rise in yield will attract new buyers as they get a higher return on their investment. This is how the market finds balance.

Mortgage bonds have lost a staggering 363 bps since last Thursday. All locked loans are getting closed at a great rate. The new market must unfold to settle at its price.

Rates are better today than at close last Friday, and are still at ALL TIME LOWS!!! Don’t give up hope. Buyers, buy your homes. Values are still in the purchase and prices may not be this affordable in the near future.