Who Is Affected By Yesterday's Rate Hike?

If you have a home equity line of credit (that's a lot of us) or an adjustable rate loan, you will feel the pinch soon. Fixed rate loan interest rates are usually anticipated well in advance of rate hikes, and those have already seen the change for now. Also credit card borrowers will likely seen a rate increase, but so will CD investors. Read Bankrate.com's Rate-hike winners and losers for more.

Mortgage Rates Rise to 6%

As rates rise, borrowers increasingly use ARMs (adjustable rate mortgages) with the lower rates for a fixed period of time or those with extremely low start rates. Those ARMs help get the buyer into an much more expensive home--it's a chicken vs. the egg story with high home prices on the one hand, and lower rates on the other hand that helped keep those home prices high. On the one hand, rates have maintained 40-year low, on the other hand, homes haven't ever been this expensive. Does this mean there's a bubble? As long as we have jobs, retail sales, housing starts and continued employment, the picture for higher prices with real estate is likely to remain. Mortgage rates, CD rates, auto loans, credit cards, mortgages, personal finance advice and more

Long Beach's Historic Districts Anchor Stability

Growth in this area has coincided with preservation. While occasionally preservation has caused controversy among neighbors, it has also brought identity which has brought appreciation and real estate value. Cultural recognition of Long Beach's areas has risen, especially in the last 10 years. This Press-Telegram article covers the how's, why's and players in Long Beach historic preservation, one of the great attractions for living in this city for a lot of people.

Real Estate Fuels Net Worth

The Federal Reserve reported on Thursday that household net worth jumped $2 trillion in the fourth quarter, to $59.2 trillion. Higher values in real estate, stocks and mutual funds fueled the last quarter rise in net worth. American homes were worth a net $8.7 trillion, up 13 percent from a year ago. Click here for the C.A.R article.

Local Long Beach

If you're looking for an overview about the area and some information phone numbers, shopping centers, points of interest, and that sort of thing, look at "Facts At a Glance", published by the City of Long Beach on their website.

What About the CLUE report?

This article is another reminder to be careful about claims on your homeowner insurance. All buyers and sellers should be aware that a previous owner's, not just the current owner's, claims may affect the current buyer's ability to get certain insurance coverage on their new home purchase. The Comprehensive Loss Underwriting Exchange is the insurance industry's database about claims history, especially related to water and mold problems. This article should emphasize the point of vigilance about home maintenance issues to prevent the unexpected as much as possible.

Calif. Median Home Price Up 2% in January

The market has not declined, the price continues upward for now, and inventory increased in January, but is still low by historic standards. Buyers have a little more breathing time to make an offer, sellers are still rewarded with a strong market statewide. What fuels this increase? Total sales for 2005 may be lower than 2004, but in California demand outweighs supply. There may be several reasons for this demand, chief among them is increased population. Read C.A.R.'s report for more.

First Time Buyer Alert!

California first time homebuyers in particular already know the challenge of entering this market where first time homebuyers are only about 26% of all homebuyers, a record low. Assembly Bill 62 has just been introduced by Audra Strickland which proposes and assessment reduction equal to 25 per cent of the property's value. Property taxes are assessed at 1% plus .25% for state bonds, and this proposal would take about $1,200 off your property taxes, considering the median price of a home here is $473,000. This is a bill to follow, and read this for more.

Prices Still Going Up

This time last year, a lot of economists thought the market had reached its peak; a lot of people thought that about 3-4 years ago too. But a National Association of Realtors economist, Lawrence Yun, says he expects a continued rise, but of about 5% in the next year due to anticipated rises in interest rates. He doesn't expect prices to fall because job creation is expected to rise, baby boomers are buying bigger homes, not smaller ones, and the home inventory available for purchase is at an historic low, expecially in California. Read here for more.

Fed Chief Sees Localized Bubbles

Attributing homeowner wealth largely to the upward run in home equity, Alan Greenspan admits to problems in some geographic areas, but not nationally. "Remember that there's a very significant buffer in home equities at this stage," he said, referring to the $9 trillion difference between home values and outstanding mortgage debt.Fed chief sees home price bubble - The Washington Times: Business - February 18, 2005