DQNews Archived Article

Mortgage Payments drop in California

by Real Estate Analyst John Karevoll
January, 1996

La Jolla, CA.—(BW) Thanks to lower prices and lower mortgage interest rates, the monthly mortgage payment that a new California home owner needs to make is far smaller than it was five years ago, bringing many potential homeowners into a market they used to be shut out of, a real estate information company reported. The typical monthly mortgage payment on a house bought during the last three months was $942. That was 28 percent lower than the $1,308 it was for the same period five years ago, according to DataQuick Information Systems.

The five-year decline in mortgage payments varied significantly from county to county. Payments were 34.3 percent lower in Los Angeles County, down from $1,401 to $919, while the decline in San Mateo County was 18.7 percent, from $2,069 to $1,683 (see chart). "The size of the check you'll be writing at the end of the month is important when you're thinking about buying a home, especially if it's your first one," said Donald L. Cohn, DataQuick CEO. "While there are shifts in sales patterns from market to market, many of today's deals are not going to be around next spring. All indications are that sales are picking up significantly, particularly in the entry-level markets," he said.

The numbers assume a 20 percent down payment on a median-priced house for this last August-to-October period and for 1990. The interest rate for a thirty-year fixed-rate mortgage was 10.15 percent five years ago, it was 7.4 percent for the most recent three-month period. DataQuick monitors real estate purchasing and financing activity nationwide and provides information to consumers, lending institutions, title companies and industry analysts.

Monthly Mortgage Payment
Median-priced homes
August-October
(Chart for Mortgage Payments drop in California)

County/Region	1990	1995	% Chg
Los Angeles	$1,401	$919	-34.3
Orange County	1,628	1,113	-31.6
San Diego	1,265	942	-25.6
Riverside	931	665	-28.6
San Bernardino	889	654	-26.5
Ventura	1,607	$1,063	-33.8
So.Calif. Total	$1,301	$903	-30.6
Alameda	1,538	$1,128	-26.7
Contra Costa	$1,465	$1,196	-18.3
Marin	$2,268	$1,846	-18.6
Napa	$1,280	$944	-26.2
San Francisco	$1,967	$1,440	-26.8
San Mateo	$2,069	$1,683	-18.7
Santa Clara	$1,844	$1,414	-23.3
Solano	$1,024	$802	-21.6
Sonoma	$1,319	$1,070	-18.9
Bay Area	$1,626	$1,289	-20.7
Santa Cruz	$1,799	$1,296	-27.9
Santa Barbara	$1,258	$991	-21.2
San Luis Obispo	$1,386	$903	-34.9
Monterey	$1,244	$1,036	-16.7
Coast Total	$1,429	$1,058	-26.0
Sacramento	$1,031	$665	-35.5
San Joaquin	$981	$654	-33.4
Placer	$1,265	$853	-32.6
Kern	$640	$454	-29.0
Fresno	$668	$499	-25.4
Madera	$626	$537	-14.1
Merced	$746	$537	-28.0
Tulare	$569	$471	-17.2
Yolo	$1,031	$775	-24.8
El Dorado	$988	$770	-22.1
Stanislaus	$924	$593	-35.9
Inland Total	$882	$604	-31.5
All California	$1,308	$942	-28.0

Source: DataQuick Information Systems

For more information call John Karevoll (909)867-9534

Copyright © 1996 DataQuick Information Systems.
All rights reserved.