30 year fixed mortgages were down last week, while 15 year mortgages stayed the same. One year ARM's, on the other hand, were up.

Fixed rate mortgages averaged about 5.72, down from a year ago when the average was 5.83.

Nonetheless, the housing market continues to strive for equilibrium between supply and demand.

If you would like to get preapproved for a mortgage, click to speak with a Los Angeles mortgage broker.

Have you been thinking about purchasing a home?

Did you know that home sales typically drop during the holiday? Everyone is too busy dealing with the holidays. Therefore, there are less buyers in the market, i.e., less offers.

The market might heat up after the holidays, so this might be a good time to sneak in a lower offer.

If you are interested in seeking a mortgage pre-approval for a home, click for a Los Angeles Area Mortgage Broker.

The real estate market typically cools around the holidays, and can often provide a mini-buyers market. This year looks especially good, as rates are have again gone down.

According to MBA, "Fixed 30-year mortgage rates averaged 5.64 percent last week, excluding fees, down from 5.70 percent the prior week."

Therefore, buyers have less competition and good rates to work with this holiday season.

If you are interested in obtaining a mortgage for a Southern California home, click to contact a Los Angeles Area Mortgage Broker.

According to a new survey by the Public Policy Institute of California in collaboration with the Hewlett, Irvine and Packard foundations, many Californians are worried about the high price of California homes.

A whopping 49 percent of respondents to a recent survey thought that rising real estate prices were bad for their families. Whereas only 41 percent thought it was good.

Most worried respondents fear that their children will be unable to afford to purchase a home in California with such high housing costs. More importantly, a quarter of them are considering moving from the state because of such high real estate prices.

Click here for the complete LA Times Article

According to DataQuick and reported in the LA Times, October saw higher priced homes, but fewer home sales.

The median price of houses and condominiums sold in Los Angeles County was up to $409,000 in October from $407,000 in September, up 23.2% from October 2003. The number of homes sold, however, declined 17.8% from a year ago.

Click here for the complete article.

Is Southern California an over-valued real estate market?

Nine of the top 10 overvalued American real estate markets are located in California according to SmartMoney's December article, What's Next for Home Prices.

Orange County, Ventura County, and San Diego are estimated to be nearly 60 percent overvalued. Los Angeles County was only 40 percent.

Does this mean that those 60 percent gains will be lost over time?

Not at all. Real estate is simple supply and demand. The issue becomes determining how much of the pricing imbalance is justified.

In the early '90s Los Angeles home prices dropped almost 30 percent when the market recorrected in tandem with an aerospace job bust. Many people moved from the area, and housing construction stopped.

When that bust started booming in the late 90's the area's population had, and continued to, rapidly expand. Combined with restictive building policies and high development costs, housing construction has continued to stall.

So overvalued, undervalued, it's hard to say. Nonetheless, real estate has without question, historically, risen in value. And supply and demand will always determine the price.

If you are interested in pre-qualifying for mortage click here to spoke with a Los Angeles area mortgage broker serving Southern California.

According to CNNMoney demand to refinance home loans is up 10.6%, while new mortgage demand dips 0.6%. Additionally, new applications for U.S. home loans rose last week as refinancing activity accelerated amid relatively flat 30-year mortgage rates.

Click here for the full article.

According to LA Times writer Annette Haddad, "When it comes to Southern California real estate, there's the big picture and then there's the neighborhood-by-neighborhood view."

Overall, numbers indicate that Southern California real estate is still booming, though slower than in previous months. However, a closer looks shows that many "neighborhood" markets are already falling. Annette states, "For instance, Orange County's median has edged 2% lower since May; Los Angeles County's, 1.2% since June; Ventura County's, 4% since September."

More important, total homes sold is down more than 13 percent, a critical statistic for analyzing home values. The majority of these 'lost' homes are in high price neighborhoods.

Homes in the median price ranges are still selling pretty well, and in some areas, home values are still rising.

Los Angeles County October sales, "which accounts for 35% of sales in the region", showed a median price of $409,000, up 23.2% from a year earlier, on a 17.8% decline in homes sold, based on last week's data.

Last month's sales decline was less severe than it appeared, given that there two fewer business days for which transactions could be recorded compared with last year, DataQuick analyst John Karevoll said. "The market is not softening by much, which many expected," he said.

Click here for the full article.

Click here to speak with a Los Angeles Area Mortgage Broker.

According to an LA Times real estate article, the median home price in Los Angeles County edged slightly higher in October to $409,000 - the second-highest median price in L.A. County in nearly 17 years, according to DataQuick Information Systems.

"Most of the models we're seeing still show high demand," said DataQuick. "There are still more buyers out there than sellers."

In the condo market, the median rose 23% to $330,000, while sales fell 21%. New homes rose 15% to a median $464,500, while sales fell 33%, DataQuick said.

Click here for the complete article.

Click here for a Los Angeles mortgage broker.

If you want to buy a home, but you know there are probably a few dings on your credit report, then you need to stop and take some precautionary steps.

According to an article by Sally Anderson, "Order a copy of your credit record, preferably three months before applying for a loan. You'll see where you stand and have time to clear up errors, which are a common finding, on your record."

The article covers the most important aspects of credit, such as how credit is determined, how to establish credit, as well as how to clean your credit.

Remember, your credit is one of the most important determinants in getting your new mortgage approved. In other words, your credit report can make or break your ability to purchase a new home

(Click here for the full article)

If you are ready to obtain pre-approval on a mortgage, click here for a Los Angeles Area Mortgage Broker.

Is the Southern California real estate market still hot? While that is certainly debatable, the real estate market certainly isn't cold. Perhaps it's cooled in some areas, but prices are still up significantly over a decade ago.

As the real estate market is typically cyclical, meaning prices go up several years, then down several years, historically, the price of real estate always increases.

Therefore, it's best to think of real estate purchases as a long term investment, much like a 401k, or stock portfolio.

According a Dian Hymer article in MSN there are several things to consider when purchasing a house, including length of ownership, home size, floor plans, and the closing.

To read the full article, click here.

Click here to speak with a Los Angeles Area Mortgage Broker.

As the Fed prepares to raise Interest Rates, mortgages have hit their highest rates in months.

This has caused refinancing applications to drop by 6.7%, while new loan applications have slipped 2.7% on 30-year loans.

New applications for U.S. home loans have also fallen.

For the full article by CNNMoney, click here.

Click here to speak with a Los Angeles area mortgage broker.

Obtaining a mortgage is a very stressful event for most consumers, something most want to get through as quickly as possible.

But you shouldn't be in a rush, in fact, take your time. Such an important decision requires your full attention. Become as informed as possible. There are many resources available.

One, a great article by Liz Pulliam Weston offers 8 common mistakes to avoid when obtaining a mortgage. According to Weston, some common mistakes include not getting pre-approved for your mortgage, not shopping around for your mortgage based on rate, fees and points, as well as not fixing your credit plus more.

Click here for the complete article.

If you would like to obtain a pre-approved mortgage in the Los Angeles area, please click Los Angeles Mortgage Broker.

Not sure whether you should take out a line of credit backed by your home? If you are considering such a move, don't make it because of the countless mail offerings you've received. Shopping around is always your best move when considering any kind of financial services.

For more information on the pros and cons of home equity lines of credits, check out this home equity article on MSNBC.com.

"I've given up trying to guess where interest rates will go," said David Stiff, a senior economist with Fiserv CSW, a firm that tracks and forecasts housing prices.

In a recent article by CNNMoney it was explained that many in the real estate market feel the same.

Are home prices going to rise, going to drop? When?

Nobody really seems to know. Some are predicting higher prices, others are predicting 20 percent drops in home values. For example an article in the Orange County Register warned "that researchers at Cal State Fullerton expect prices in the Los Angeles area county to fall as much as 20 percent in the next two years."

Other analysts are just amazed at the unpredictability of the current real estate market.

"I've been studying the market for ten years, and I'm always amazed by what a diversified market this is," said Delores Conway, director of the Casden Real Estate Economics Forecast at the University of Southern California Lusk Center for Real Estate.

"The strength or weakness of a housing market varies not just from one region to the next, but within any give metro. In Los Angeles, she noted, prices seem to be retreating in million-dollar neighborhoods, but there is still strong demand in areas where homes are selling for less than $500,000," added MoneyCNN.

While many expect Los Angeles to continue to increase it's property value for at least the next year, most don't see any serious bubble-bursting.

When mortgage rates begin to rise, the market should revalue to some extent, but when that happens, and the significance of that event is still to be determined.

"Greenspan has indicated that the Fed will be increasing rates at a measured pace, that means slow and steady," said Conway. "That gives the housing market time to digest any price gains."

"But we don't expect the magnitude of what we saw in the early 1990s, when high rates and rising unemployment had a doubling effect," added Conway. "The key is employment."

Interested in refinancing your Southern California mortgage?

30-year fixed-rate mortgages averaged 5.7 percent, down from an average 5.64 percent last week.

Last year, the rate on the 30-year fixed-rate loan was 5.94 percent.

The 15-year mortgage rate rose to 5.08 percent this week from 5.01 percent last week. Last year, the average rate stood at 5.26 percent.

One-year adjustable rate mortgages (ARMs) averaged 4 percent, up from 3.96 percent the previous week.

Click here if you are interested in a new mortgage or refinancing in the Southern California area.

According to a Reuters article posted in the LA Times, sales of existing U.S. homes unexpectedly surged 3.1% in September due to low mortgage rates.

While most analysts were surprised, others saw justification.

"We've had a dramatic fall in 30-year fixed mortgage rates over the last several months, and that's created a very favorable backdrop for housing," said David Lereah, chief economist for the Realtors group.

Click here for the full story.

The high cost of housing in Los Angeles and Ventura counties is heading towards crisis levels, according to some experts.

A study released last week by the Greater Los Angeles and Ventura Chapter of the Building Industry Assn. and the Los Angeles County Economic Development Corp. called the housing situation into question.

"With more than 10 million people already calling Los Angeles County home, and that number estimated to increase dramatically in coming years, we simply are not building enough homes to meet demand," said Jack Kyser, chief economist for the Economic Development Corp. "If demand continues to outpace supply, we'll not only see higher home prices, the housing shortage will soon have a negative rippling effect across all sectors of the county economy."

Click here to speak with Los Angeles area mortgage broker.

Yes. If you can pay off your home by the time you retire, your retirement - statistically - will be much more comfortable than if you still have mortgage payments.

Therefore, if you are seeking to sell and buy a new home, or seeking to refinance, anytime before you retire, always set your loan term to expire at the same time as your intended retirement.

If you cannot achieve this rule of thumb, you should speak with a certified financial planner.

Taking years off a loan doesn't take much. Simply paying an extra $100 - 200 per month, will help you take many years off your loan, depending upon its size.

Like many in Southern California, my mother-in-law refinanced a few years ago. Thinking she would soon sell her house, she opted for an ARM, but recently that ARM moved from fixed to adjustable, and every month her monthly bill has increased.

Fortunately, my mother-in-law has a large amount of equity in her home, and she has decided to fix her rate, and today’s rates are still great.

Many are not as fortunate as my mother-in-law.

As real estate prices in Southern California have escalated over the last several years, it has become harder for most SoCal residents to buy-into the real estate market.

The only way that many could finance a home purchase was through an ARM or an interest-only loan, rationalizing that a profitable sale would be just around the corner.

This question; however, must be asked, “Where are you going to move?”

Unless you are moving out of Southern California, will this logic work? If you sell when it’s a seller’s market, then you have to buy in a seller’s market, and that logic doesn’t make sense.

As with any investment, the goal is to always sell high, buy low, but these people seem to falsely assume they can have it both ways.

Now that the economy is continuing to slug along, the Southern California real estate market has tempered.

Now is the time to fix your rate. Perhaps interest rates will remain forever low, but conventional wisdom, on the other hand, leans towards interest rates rising.

Even if interest rates don’t rise, the market has already cooled in Southern California as the market readjusts. Where it goes from here is anybody’s guess.

If you are one of those recent Southern California homebuyers, afraid to miss out on your dream of homeownership, that extended themselves to purchase a house, think about your options.

With rates almost certain to rise, and the real estate market stabilizing – minimally – now seems to be the time to lock in historically low rates.

Click here for professional advice from a Los Angeles or Southern California mortgage brokers.