Rates Unchanged, Defaults in CA Drop

Although most analysts say the Fed will probably raise rates by the end of the year, the central bank for the moment at least decided to keep rates at record lows ... with one opposing vote pointing to an improving economy.
Meanwhile, the number of homes in California entering the first stage of foreclosure fell 24.3 percent in the fourth quarter compared with the previous quarter.

Prices Up, Sales Up

The median sales price in SoCal climbed 4% from December 2008 to December 2009, while the number of sales jumped 12.1%, according to DataQuick. This improvement in the housing market was no doubt spurred by very low interest rates, relatively low prices, and the federal tax break.

While some experts say that 2010 is going to see continued improvement, we still have hurdles in market fundamentals: high levels of unemployment, more foreclosures on the horizon, and the end of the tax credit on April 30.