Long Beach Real Estate-Long Beach Condos

Mortgage rates in Long Beach dropped from 5.25% to 4.875%, from conventional loan programs, with 1 point today.  Oh, how I love it when the government is actually working for home buyers rather than trying to raise the dead.

Long Beach Mortgage Rates as of March 5, 2009:

All eyes are on the unemployment figures tomorrow but here's where mortgage rates were today:

20% down, conventional loan up to $417,000 with 1 point                        4.875%
25% down, conventional loan from $417,001 to $729,750 with 1 point      5.375%
3.5% down, FHA  loan up to $417,000 with 1 point                                  5.000%
3.5% down, FHA loan up from $417,001 to $729,750 with 1 point             5.375%
ZERO down, VA loan up to $417,000 with 1 point                                     5.000%
ZERO down, VA loan, from $417,000 to $737,500 with 1 point                  5.375%
25% down, jumbo loan from $730,000 to $1,000,000 with 1 point             6.000% 

Mortgage Help From The Government Stimulus?

if you're underwater on your mortgage, the Obama plan ain't gonna help you.  This plan was designed for every state but CA, FL, NV, AZ, MI, and NV.  You know, the places that are hurting the most....

...like Long Beach. 

Big Bank Bailout News

Hooray for Northern Trust and US Bank !  They gave back the bailout money they never wanted in the first place.  Meanwhile, if your bank gave the politicians money, it got multiples of it back in bailout money.  Citigroup and Bank of America gave politicians an astounding $5 million and $6 million (respectively) last year and received $50 billion and $45 billion (with a B) from their "investment".

So, there you have it.  If you're a distressed homeowner in Long Beach, you lose.  If you're a bank who donated money to the politicians, you got BIG bonuses at the end of last year.

Brian Brady is Managing Director of World Wide Credit Corporation, a San Diego-based mortgage banking and brokerage firm. Google calls him America's #1 Mortgage Broker; you can call him at (858)-777-9751

Long Beach Real Estate News

New FHA Loan Limits

Los Angeles County and Orange County FHA loan limits decreased on January 1, 2009.  The FHA has now restored the higher limits in both Los Angeles and Orange Counties.  What does that mean to todays Long Beach home buyers?  This means that  buyers can qualify for higher loans on homes once again.  This is true for all residential loans, including; homes, condos and residential investment property under 4 units. 

FHA Loan Limits for other areas of California and other States can be found here. 

Real estate is almost always a good purchase.  Now is a very good time to consider purchasing a Long Beach Home, Condo or Income Property. Interest rates are very low and loans are available, both through FHA and conventional means. Conventional loans are becoming more expensive to attain.  Recently lenders have begun to demand 10% down payments forcing more buyers into FHA loans.  As the year moves on do not be surprised if the lenders increase that 10% to a higher number. 

If you have been sitting on the fence call us today to discuss your needs and wants.  We are always here for you.  Call Laurie (562) 212-5420

Long Beach Home Buyer Tips

• Home Buyer Tips - Don't Make Any Major Purchases
• Home Buyer Tips - Things to Avoid Before Purchasing a Home
• Home Buyers Tips - Changing Jobs Affects Your Ability to Purchase a Home

• Long Beach Homes - Issues for 1st Time Buyers
• 1st Time Buyer Tips - Hire a Buyers Specialist When Buying Long Beach Homes and Condos
• Buying Fixer Upper Homes in Long Beach
• Long Beach Home Loans - Understanding Your Credit Scores

Laurie Manny Professional Group

244 Redondo Avenue
Belmont Heights
Long Beach, California 90803

(562) 212-5420

Last week, I reported that Long Beach mortgage rates were under 5% while the average was 5.1%.  Today, rates are higher; I'm offering 5.25%.

Jumbo mortgage rates are much higher:

Super Jumbo:  $1,000,000 to $3,000,000- 7.125%
Jumbo:  $730,000- $1,000,000- 6.5%
Agency Jumbo:  $417,000-$729,750- 5.5%
Conforming:  $417,000 and under- 5.25%

Are you holding out for prices of Long Beach homes to drop before you make an offer?  You aren't alone.  I spoke with Spencer Raskoff of Zillow.com, before he spoke on CNBC last week:

Homebuyers have to feel confident that we're at or near a bottom. Zillow's research shows that a striking 70% of American homeowners think their home will increase in value or stay flat over the next 6 months. But buyers aren't walking the walk. Credit goes to Brian Brady for calling my attention to this point today. Too many buyers are sitting on the sidelines, not making offers because they don't want to buy too early. We're not going to have a housing market turnaround until those buyers start to make offers, and they're not going to make offers until they feel that we've already hit a bottom.

We both agreed that these horrific reports were actually good news because it demonstrates that we are awfully close to the bottom.  Waiting won't help you unless you have tons of money.  While housing prices were dropping, lenders have been requiring higher and higher down payments.  Let's face it; bankers are pretty stupid.  When California real estate was skyrocketing, they let people buy homes with no money down and no income verification while the collateral was getting risky.  Now, as collateral becomes much safer, the bankers are asking for even HIGHER down payments.  What this means to you, the Long Beach home buyer, is that even if you wait, you WILL NOT have the means to buy a home.

Is it any wonder we have to bail out these bozos?

Unfortunately, we need these bozos to finance your home.  While you may not catch the ABSOLUTE bottom, you can still get a loan with as little as 3.5% down payment...today.  Laurie Manny  can point you to some terrific deals being offered by the bozos. Call her and we'll get you all set up.

Long Beach Mortgage Rates Report - Thursday - February 19, 2009

By Brian Brady

At the beginning of 2009, I called borrowers to action, suggesting that it was imperative to jump on a low mortgage rate.  The Fed announced that they would inject $500 billion, to buy mortgage-backed securities, to "stabilize" the mortgage market.  I was giddy with but adamant that the low mortgage rates wouldn't be around forever, regardless of the Fed's action.    A young lady called me on the carpet for trying to incite a riot.

Maybe I was "too forceful" in my call to action.  Somewhat pensive, I clicked through to the Zillow Mortgage Marketplace Rates Chart, to see how wrong I was.  (Go to the chart, select 30-year fixed, 680 or better credit score, and 20% down payment, charted over three months).

Mea culpa.

I didn't scream loudly enough.  I should have advised that young lady that when I speak, she should be taking notes.  When I advised that the sub-5% frenzy would be short-lived, average mortgage rates* were at 5.1%.  Average mortgage rates* dropped to 4.75% (which surprises me because I locked a boatload of borrowers at 4.5%) and stayed below 5% for...

all of 9 days.

Around the third week in January, average mortgage rates* popped over 5% and have stayed above that level since then.   Today, Zillow Mortgage Marketplace quotes average mortgage rates* at the 5.1% level.

Mea Culpa

I've been telling you to hold out for 4.5%, since then, in hopes that the Fed's $500 billion support plan would work.  Well, the Fed's blown 20% of its bankroll, and they still can't keep average mortgage rates* below 5%.  While some of us are able to structure purchase money mortgages below 5%**  the Fed is losing the war.

The Obama Mortgage Plan isn't going to help new home buyers.  In fact, it might just hurt you a lot.  The cornerstone of the plan is to force lenders to compromise loan balances and original mortgage terms.  While that sounds all well and good in theory, in practice it sends a message to lenders;

The terms of the loans you write are rock-solid...unless they aren't, then the gubmint's gonna intervene.

Who suffers?  New homeowners; that's right...YOU.  New homeowners suffer because it means you've got a "weasel-out clause" if things go bad.  Lenders, will price that "weasel-out clause" into the NEW loans in the form of higher rates.

The government, in its efforts to fight the market, may have hit a tipping point.  This intervention will cause lenders to make mortgages harder and more expensive to get. Maybe not tomorrow, maybe not next month but sooner rather than later.  Higher down payments, higher rates, and higher credit score requirements are on the horizon.

What's that mean to you, the Long Beach home buyer?  If you're waiting to see if home prices come down that "last little bit", you might pay a whole lot more for your mortgage loan.

Mea Maxima Culpa

I've been absent and I know from the e-mails and calls that you've missed my advice.  I'm back.

* The term "average mortgage rates" are charted by Zillow Mortgage MarketPlace

** Why do I structure loans with terms superior to "average" ?  I ain't average.  I shop over 100 lenders to secure you the best terms.

Brian Brady is Managing Director of World Wide Credit Corporation, a San Diego-based mortgage banking and brokerage firm. Google calls him America's #1 Mortgage Broker; you can call him at (858)-777-9751

Long Beach Mortgage Rates Report: Fed Cut To Prompt Lower Mortgage Rates Into November?

We analyze mortgage rates by examining the mortgage-backed securities market and its reaction to economic data and events.  Today, the Federal Reserve cut the Fed Funds rate to an historical low of 1%:

The Fed funds rate target is now 1%, the lowest level in more than four years. In announcing its decision, the Federal Open Market Committee cited a drop in spending by consumers and businesses, and predicted that consumption may slow further due to tighter lending standards.

"The pace of economic activity appears to have slowed markedly," the FOMC said in a statement, "owing importantly to a decline in consumer expenditures."

Why's the economy in the tank?  You just aren't spending enough money, Joe the Plumber.  Of course, you can't borrow any either so you're hesitant about spending.   Hence, the Fed cut in rate.  Normally, a Fed cut should be followed by a RISE in mortgage rates but it looks like the mortgage-backed securities market anticipated the cut a week ago. 

Let's take a look the crystal ball (market chart):

See what's happening here?  Two weeks ago, we had a six day BIG drop, which caused rates to rise from 5.875% to 6.5%.  That drop was followed by a 5 day rally, which brought rates back down to 5.875%.  Then, we had a six day BIG drop, driving mortgage rates back up to 6.5% (today)...

...and I think the market overreacted which means I think we'll see lower mortgage rates into the beginning of November.

This is the kind of volatility we've come to expect.  Mortgage rates should drop to 6.25%, pause, then drop again to the 6% level or below.  No guarantees but November closings should get a peek at 6% or better rates soon.

Brian Brady is a Managing Director with World Wide Credit Corporation, a San Diego-based mortgage banking and brokerage firm. Google calls him America's #1 Mortgage Broker; you can call him at (858)-777-9751