30 Year Loan Rates Down

Freddie Mac announced this week that interest rates on 30 year, fixed rate mortgages are at one full point lower than they were one year ago. This week the rate averaged at 4.78%. Freddie Mac has tracked such averaged since the early 1970's.

Last year at this time the average interest rate was 5.97%. And for the first time since 1991 the 15 year fixed rate was 4.29%. This is down from 4.32% last week. Rates also dropped for five year fixed rate mortgage loans.

Because of the Federal Reserves $1.5 trillion to buy mortgage-backed securities and make lending more available the rates have come down. Economists say that when mortgage interest rates drop below 5% is when we see the real estate market pick up. This recent lowering of the rates can't do anything but help the real estate market rebound.

Between low mortgage rates and the tax credits right now prices have begun to stabilize throughout the country.

If you are interested in taking advantage of these low interest rates and/or the tax credits being offered to home buyers right now please contact us! We would love to help you find what you need or find a realtor that can help you!

Delinquent Mortgages Reach All Time High - Affordable Housing Market

The Mortgage Banker's National Delinquency Survey revealed that in 10% of mortgages on 1-4 unit dwellings are in foreclosure. This is a 2.6% increase since just last year. Without seasonal adjustment, this puts the total number of mortgages in foreclosure at a record high of more than 14%.

Some banking professionals are blaming the unemployment rate for this record high. It was also revealed that most of the loans in foreclosure right now are prime fixed rate mortgages.

Most analysts and home builders aren't making too much of the new numbers because they believe that the market goes in and out of season and they think that we will pull out of this "slump".

On a lighter note, homes are at their most affordable in years. CNN Money states that the median income of families is about $64,000 per year and that if Americans used 28% of their income on housing they could afford 70% of the homes on the market in the third quarter. This is great news for those that just assumed they would never be able to afford a home. Last year at this same time only 56%.

If you are looking to relocate and think you may be interested in the Southern Utah area, we have many great values! Contact us today for more information!

Federal Housing Tax Credit

It was great when we got the Federal Housing Tax Credit put in place and due to that certain real estate markets were able to start rebuilding. Now the Feds approved the extension of this tax credit ($8,000 for first time home buyers) and they also authorized a $6,500 tax credit for repeat home buyers. This is a great opportunity for so many people.

Here are a few key points to remember about these credits.

1. The $8,000 first time home buyer credit is for the purchase of a primary residence.
2. The first time home must be purchased between January 1, 2009 and April 30, 2010.
3. If you purchase after November 6, 2009 you will have an income limit of $125,000/yr. if you are single. $225,000 per married couple that file jointly.
4. For repeat buyers the income limits are $75,000 for single and $150,000 for married filing jointly.
5. The first time buyer credit is equal to 10% of the value of the home, up to $8,000.
6. Any home qualifies for the first time buyer credit as long as it is valued under $800,000.
7. These credits do not apply when you are purchasing a relatives property, an ancestors property, property of your in-laws, etc. No familial interaction is approved.
8. The credit is refundable. What this means is that even if you don't have withholding enough on your return to offset this, you still take it and you will be cut a check for the applicable amount as part of your tax return.
9. These credits also apply to people who have hired a contractor to build a home for them rather than buy an already existing home.
10. If you purchased a home after April 2008 but before January 2009 you do qualify for these credits but you may qualify for other credits.

These are just a few of the most talked about issues regarding the tax credit. You can find a lot of information at the site: federalhousingtaxcredit.com.

If you have further questions about how this can work for you please contact us and we will be glad to help you in any way that we can.