Long Beach California Real Estate Loans

Long Beach, Ca.  Southern California medium sales price is down to $250,000.00(see the front page of the Los Angeles) which is causing a flurry of buying activity.  No shortage of loan applications!  Ironically, there does not seem to be enough REO inventory available!  That is; the good stuff gets sold fast and is rapidly bid up.  Banks are listing their properties artificially low and then entertaining multiple offers.

CPI came out and the cost of living in the U.S. rose in January for the first time in six months after gasoline prices stabilized and loss-ridden retailers pushed through increases. The consumer price index rose 0.3 percent, as forecast, Labor Department data showed today in Washington. Excluding food and fuel, the so-called core rate, prices advanced 0.2 percent, due to autos, clothing, and medical care. The CPI was unchanged on an annual basis -- the first time it hasn't risen since 1955.

Equity market continues under great uncertainty and concern about the foreclosure prevention act.  Rick Santelli, a reporter for CNBC had his own meltdown reaction with other traders on the floor about provisions of the plan. Quite entertaining if you have not seen the entire clip and for your enjoyment here is the link which is five minutes long, but pretty entertaining.

http://www.cnbc.com/id/15840232?video=1039849853

THE RISE OF THE GOLD BUGS
Added to this in the market today is the concern that major portions of the existing financial sector will involve nationalizing the banks.   Gold and government bonds are predictably the safe harbor.  Gold has touched $1,000 dollars and anxiety circled eyes are filling the trading floor as jittery investors turned to the yellow metal to preserve wealth amid a tumbling stock market.  The metal is poised to rise further, possibly targeting last March's all-time high of $1,030.80 an ounce, analysts said.

Most of the equity market is on edge because of three things.  

• 1. Concerns over a bankrupt Detroit and requests for more taxpayer money,
• 2. Bank Nationalization, a number of rumors are building about Citicorp and Bank of America.
• 3. And major concerns about the foreclosure prevention plans announced by the Administration. Follow this Link: http://www.cnbc.com/id/29299209

This morning the bond market was actually happy to see some signs of inflation - go figure. U.S. consumer prices were up in January .3%.   After this we find mortgages better by about .250 in price and the 10-yr at 2.75 with yesterday's yield at 2.82%.  Pricing has continued to improve so I would wait a little while check Loan Solutions for new locks.

Kirk Mulhearn is a Long Beach real estate broker and professional mortgage planner, you may contact him at:  866-961-8042 ext. 110

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