The Budget Oversight Committee will look to limit the salary increases it allows.

It looks like the city of Long Beach is serious about this issue that has aroused a lot of concern. The Budget Oversight Committee is expected to review tomorrow (January 29) an amendment to the salary ordinance, which will require the city manager to notify the city council of salary increases greater than “cost of living,” or the Consumer Price Index. Under the current ordinance, the city manager can raise annual salaries by up to seven percent. The meeting will begin at 4 p.m. at Long Beach City Council Chambers, 333 W. Ocean Blvd.

Source, The Long Beach Business Journal

“The package agreed upon by Congress would temporarily allow Fannie and Freddie to buy or guarantee mortgages as high as $729,750 in cities with high housing prices, according to House Speaker Nancy Pelosi.” according to the Wall Street Journal.

This could change the playing field a little for first time buyers, if the rates remain affordable. The $729,750 limit would expire Dec. 31, but permanent for loans guaranteed by the Federal Housing Administration. The current FHA is limited to $367,000.

One easy prediction about this year is that it will be an interesting one.

Source Calculated Risk.