Irfan NazirSenior Vice PresidentPac West Home LoansPhone: 909-786-6763Fax 866-809-6206License:289598www.pwhomeloans.com

// Rate Update

15 and 30 yr. Fixed Rate Mortgages from 2008 to Present

// Market Watch

Rates Up, Home Prices Up, Inventory in Short Supply

Despite r is ing home loan interestrates, home prices continue to surgeh i g h e r . T h e l a t e s t r e a d f r o m amonth l y Co reLog i c r epo r t showshome va lues , i n c l ud ing those o fd i s t r e s s e d p r o p e r t i e s , u p 1 2 . 4percent from July 2012, which wash igher than both May and June 'sannual increases, and is the 17thconsecutive month of annual gainsfor home values nationally.

Pr ices were up 1.8 percent monthover month, according to the report.

"Looking ahead to the second halfof the year, price growth is expectedto slow as seasonal demand wanesand higher mortgage rates have amarginal impact on home purchasedemand," said Mark Fleming, chiefe c o n o m i s t f o r C o r e L o g i c , i n ar e l e a s e . H o m e l o a n r a t e s h a v etrended higher on expectations thatthe Federa l Reserve wi l l beg in totaper its investments in mortgage-backed securities.

In a surprise move, in its Septembermeeting of the Federal Open MarketCommittee, the Fed decided not totaper i ts purchases due to recenteconomic reports that were worsethan expected. Fed Chairman BenBernanke stated that tapering could"possibly" come later this year.

Despite this, home prices are alsotrending higher in part due to thefact that there are fewer distressedproperties for sale.

Excluding d istressed sa les, pr iceswere up 11.4 percent year over year.Distressed properties have seen bigp r i ce jumps in the pas t yea r , asinves tors f i gh t fo r the rema in ingbargains.

Interestingly enough, some marketsh i t ha rdes t by the hous ing c rashhave seen the biggest price gains:Nevada home p r i c e s we re up 27percent from a year ago, Californiawas up 23 percent and Arizona up 17percen t . Comp le ted f o rec l osu resnat iona l ly were down 25 percent ,according to the report.

Prices are also getting a boost fromthe sheer lack o f homes for sa le .Inventor ies are way down in localm a r k e t s a c r o s s t h e n a t i o n , a n dh o m e b u i l d e r s a r e n ' t p r o d u c i n gfastenough to meet new demand.

While the inventory situation is notexpected to ease very much over thenext year, home prices are expectedto weaken sl ightly, as higher ratesand weak income growth put a capon just how high prices can go.

I n summary , i nven to ry i s down ,home pr ices are up and economicd a t a i n t h e c o m i n g w e e k s a n dm o n t h s w i l l b e a k e y f a c t o r i nwhether the Fed begins tapering itsBond purchases later in the year orin 2014. This timing could play a bigrole in the direction Bonds and homel o a n r a t e s m o v e i n t h e m o n t h sahead.

// In This Issue

Rate Update15 and 30 yr. Fixed Rate Mortgages from2008 to Present

Market WatchRates Up, Home Prices Up, Inventory inShort Supply

Tech Corner4 Real Estate Apps For Aficionados

Featured ChartNational Housing Appreciation by Region,Since 1975

// Tech Corner

4 Real Estate Apps For Aficionados

Furnish is an "augmented reality app for homefurniture" according to the developer. Think of itmore like a dressing room for your home. Just snapa picture of any room with your mobile device, thenplace a virtual picture of furniture from IKEA, PotteryBarn, or Crate and Barrel (with more retailers on theway) to help you visualize the perfect arrangement.You can even purchase furniture you want fromwithin the app. Free download for iPhone or Android.

myPantone takes Pantone's virtual color library—thestandard used by professionals in virtually everyfield of design—to generate and accurately matchcolor in the real world. Then you can share the"Pantone number" with everyone from your interiordesigner, to the paint store guy, to your spouse,mother-in-law, or anyone else with a say in the finaldecision. Download for iPhone [$9.99] or Android[$7.99].

// Featured Chart

National Housing Appreciation by Region, Since 1975

The map above is color coordinated by Census Division. The figures evidence the average annual appreciation per nationaldivision. The appreciation figures shown are derived from the Federal Housing Finance Administration (FHFA) All TransactionsData. Appreciation will vary from year to year, can decline and for any individual property, can be more or less than the averagesillustrated here.

© 2013 Vantage Production, LLC. All rights reserved.

Irfan Nazir

10737 Laurel Street #100

Rancho Cucamonga, CA 91730

Airbnb can give you a taste of what it's like tolive in big cities before you buy. Check outdigs in New York, Boston, Chicago, Los Angelesand more, by searching for bedrooms,apartments, and even entire homes, by thenight or on a short-term rental basis. Airbnbvets properties, verifies showcase pics, andperforms a light background check on bothrenters and homeowners. Free download foriPhone or Android.

Trulia's app features photo slideshows ofhomes and rentals, real-time notifications,Google Maps integration, mortgage tools, andlocal neighborhood intel on schools,restaurants, local amenities, and night life.Free download for iPhone or Android.