Mortgage rates are on the rise due to increased concern over inflation. "The 30-year fixed-rate mortgage (FRM) averaged 6.37 percent for the week ending Oct. 12, up from 6.30 percent, according to Freddie Mac's (Charts) Primary Mortgage Market Survey. A year ago, the 30-year FRM averaged 6.03 percent." (more)

Need a mortgage broker to refinance that ARM mortgage before rates go to high?

Do you still have an ARM mortgage rate? Did you know that your monthly payments could more than double once your initial 'teaser' rate is over? Are you ready for a higher mortgage payment? What if the value of your house drops?

If you are worried about your ARM mortgage you should fix your rate as soon as possible, especially while home values are still high and mortgage rates are low.

If you can't refinance into a fixed mortgage, try a 5 year ARM.

Mortgage rates are at their lowest levels in 7 months according to Freddie Mac. Today's average mortgage rate of %6.30 is still higher than this time last year when rates were 5.98%. Unfortunately, lower rates are not being used by potential home buyers. Instead, most new activity in the mortgage market is for refinancing ARMs into fixed mortgage rates. (more)

There is a very interesting article in the Los Angeles Times regarding mortgages and whether it is better to go with an online provider or with a local bank. Interestingly, it seems - according to the article - that online providers have less to gain in terms of commissions, etc. This doesn't mean you shouldn't go with your local bank, but it is an important consideration. For more check out the article, How lenders compare

You've heard it everywhere. The real estate market is crashing, right?

I say hold on, not so fast. I'm not saying it won't crash, I'm just saying it might not crash as fast as everybody seems to think, or even at all. For more read Will falling energy prices buoy the real estate market? .

Sure mortgage applications are down almost 23% compared to a year ago - but applications are still up almost 5.3% on a week-to-week basis. Ultimately, real estate markets can be largely driven by psychology, and the word has been bad on the street regarding real estate. Nonetheless, energy markets are dropping as gasoline prices quickly slide down towards $2.00.

This reduction in energy prices could lead to increased consumer confidence, which might spur even further mortgage activity, especially if mortgage rates take one last significant dip.

If you are seeking to buy a house in Los Angeles or Southern California, then you know how hard the process can be with home prices so high. Even with mortgage rates at historically low levels, it is still almost impossible for the average buyer to afford a mortgage for the average home. For an interesting article on some creative ways to finance a home purchase, check out the article 7 creative ways to buy your first home.

I find the real estate market to be absolutely fascinating, and in recent years, nothing has been more interesting than the so-called real estate bubble. While I do pay attention to what is going on in real estate throughout the Nation, I focus particularly on California, especially Southern California.

The other day I read the article, Southland Home Sales at 9-Year Low. Almost everyone knows that home sales have slowed, as more and more For Sale signs hit the front yard and stay there longer and longer. This has some eagerly waiting for the decline of home prices.

Yet, is Southern California real estate really going to drop in price that much? And, will the reduction in price be worth higher interest rates?

Well, I'll be honest, I really don't know.

During the last real estate boom and bust in Southern California, not only were jobs leaving the area, but so too were the people. While some people have left Southern California, others have taken their place. Go find an apartment in Los Angeles - it's neither fun nor easy.

Even more interesting, when one compares Los Angeles to San Francisco, L.A. is still pretty cheap. With outsourcing hitting the Bay Area so hard, that phenomenon seems a bit mystifying.

The truth is, no one knows what is going to happen. Sure, home appreciation might flatten, but to expect a huge drop in prices seems a bit hasty and overly optimistic.

What about foreclosures, you say?

According to reports that I've seen, the areas to be mostly affected by ARMs, etc., don't include the West Coast. More important, the Southern California economy is actually pretty strong and Los Angeles offers some of the better job growth of any large city.

Ultimately, no one really knows what is going to happen. If you are trying to make a quick buck off of real estate, you're probably in the wrong market. If you are in it for the long term, even if housing prices do decline, there WILL be another boom. That is simply the nature of real estate.


If you are buying or selling, all I can say is, Good Luck.