Mortgage rates varied this week in San Francisco. Meanwhile, Bloomberg reports the high price of land in the city is paving the way for a new brand of hotel, called Yotel.
An eight-story boarded-up office building in the city was purchased this year for $17.7 million -- almost twice what it sold for six years prior -- and is being converted into a Yotel with plans to open in 2017. Kuwait-based IFA Hotels & Resorts is the largest shareholder of Yotel and currently operates four hotels. The signature feature of a Yotel is its tiny rooms, which provide twice the revenue of a traditional hotel.
The benchmark 30-year fixed-rate mortgage in San Francisco dropped to 3.9 percent from 3.98 percent, according to the Bankrate.com national survey of large lenders. The mortgages in this week's survey had an average total of 0.26 discount and origination points. Nationally, the 30-year fixed-rate mortgage was 4.03 percent.
Bloomberg reported that returns on commercial real estate in San Francisco are at an all-time low. The average capitalization rate was 4.9 percent in the last year, which was the lowest since 2001, according to Real Capital Analytics. Yotel is capitalizing on the high land price and pitching itself as a revenue-maximizing solution.
The benchmark 30-year jumbo mortgage, for loans of $625,500 and up, increased to 4.13 percent from 4.1 percent. The benchmark 15-year fixed-rate mortgage fell to 3.15 percent from 3.19 percent. The benchmark 5/1 adjustable-rate mortgage rose to 3.31 percent from 3.24 percent.
Weekly mortgage survey
|Results from Bankrate's Dec. 10 survey of mortgage lenders. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $625,500 in San Francisco.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.90%||3.15%||3.31%||4.13%|
|Change from last week:||-0.08||-0.04||+0.07||+0.03|
|Change from last week:||-$7.54||-$3.19||+$6.38||+$10.92|