Long Beach California Real Estate Loans

Long Beach, Ca. 30 Year interests rate are low, we are consistantly locking interest rate below 5% for 30 year fixed mortgages.  There has been a recent buzz and flurry of loan applications from home owners attempting to advantage of current interest rates in Southern California

Unemployment rate report has come out and the statistic for last month data stands now at 7.2% and they were expecting 7.0%.   Equity market is acting negative to this news as well as our bond market.   Pricing opened down about .25% in price but has improved slightly, however, we have not seen investors post any changes to their opening rate sheets as of yet.  Next week brings us the release of several important reports including December's Retail Sales data and two key inflation readings. There is no economic data scheduled to be posted Monday or Tuesday, but every other day of the week has important releases scheduled. Currently, the Ten Year yield is at 2.44% (2.44% yesterday).

Our mortgage pricing going forward will be affected by the ongoing purchases of mortgage backed bonds.  The Federal Reserve bought $10.213 billion of mortgage securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae in the first three days of a new program to support the housing market. The central bank has pledged to buy $500 billion, or possibly more, of these bonds backed by home loans in the first half of the year, an effort that has started to drive down mortgage rates. Market participants had expected the Fed purchases to average $3 billion to $4 billion daily, which would keep it on target to complete the aggressive spending spree within the first half.  So our normal rules of watching out for Friday's and coming up on Holidays will be semi on hold while the market is manipulated by the government purchases of mortgage backed bonds.

Kirk Mulhearn, a mortgage planner and real estate broker can be contacted at 562-989-4608 ext. 110 or emailed at:  kirkmulhearn@gmail.com

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