On Oct. 8, 2008 Ben Bernanke and the Fed brought financial aid to the markets, lowering the Federal Funds Rate and Discount Rate by 1/2 point. What this means is Rates for homes may lower even more. Keep in mind interest rate changes take months to work their way through the system. The housing market is the last to reap the lower rates.
There are plenty of bargain homes available now. With the market being sluggish many people are getting desperate to sell their homes before they are forced into foreclosure.
Wednesday, October 15, 2008
Tuesday, October 14, 2008
$7,500 Tax Credit for First Time Home Buyers
For all the of you wanting to purchase a home who find they are a little short on cash, the newly enacted legislation providing a tax credit of as much as $7,500 for first-time home buyers might just be the opportunity of a lifetime.But like so many of the good things in life, time is of the essence for buyers who want to take advantage of this outstanding opportunity. Only homes purchased on or after April 9, 2008 and before July 1, 2009 are eligible. Use the links below to learn more about the tax credit.
Government Takeover of Fannie Mae and Freddie Mac
What does it mean for the local housing market?
1)What happened? On 9-8-08, the US Govt took over ownership and management oversight of mortgage giants Fannie Mae and Freddie Mac.
2) Why did the US Govt take over Freddie and Fannie? They did so to stabilize the overall housing market and help bring down interest rates.
3)What is the current primary mission of the mortgage giants? "To proactively work to increase the availability of mortgage finance" which is a quote from James Lockhart who will temporarily govern Fannie and Freddie. He also stated that they would be looking at ways to keep mortgages affordable for the American Public.
4) What will happen to interest rates? It is widely expected to help improve mortgages rates in the near future although there is no guarantee this will happen.
5) Is this a good thing for the local housing market? Yes, it is looked at favorably by the majority of parties involved in the local housing market including Real Estate and Mortgage Banking Professionals.
6) Does this fix all the economic issues and problems in the local housing market? No, it doesn’t fix all the current issues including foreclosures and concern over home values but it does send a strong message to consumers that the mortgage market will continue to operate as it has in the past to help the consumer achieve the American Dream of Home ownership. In fact, Wall Street responded favorably to this news on Monday morning.
7) Is it a good time for a consumer to buy a home? Yes, with interest rates trending lower and home prices down from previous years it is an excellent time for someone to consider buying a home.
8) Where should a homeowner go for additional information regarding mortgage options? They should seek out an experienced mortgage banking professional who works for a company with a good reputation in the mortgage industry.
What does it mean for the local housing market?
1)What happened? On 9-8-08, the US Govt took over ownership and management oversight of mortgage giants Fannie Mae and Freddie Mac.
2) Why did the US Govt take over Freddie and Fannie? They did so to stabilize the overall housing market and help bring down interest rates.
3)What is the current primary mission of the mortgage giants? "To proactively work to increase the availability of mortgage finance" which is a quote from James Lockhart who will temporarily govern Fannie and Freddie. He also stated that they would be looking at ways to keep mortgages affordable for the American Public.
4) What will happen to interest rates? It is widely expected to help improve mortgages rates in the near future although there is no guarantee this will happen.
5) Is this a good thing for the local housing market? Yes, it is looked at favorably by the majority of parties involved in the local housing market including Real Estate and Mortgage Banking Professionals.
6) Does this fix all the economic issues and problems in the local housing market? No, it doesn’t fix all the current issues including foreclosures and concern over home values but it does send a strong message to consumers that the mortgage market will continue to operate as it has in the past to help the consumer achieve the American Dream of Home ownership. In fact, Wall Street responded favorably to this news on Monday morning.
7) Is it a good time for a consumer to buy a home? Yes, with interest rates trending lower and home prices down from previous years it is an excellent time for someone to consider buying a home.
8) Where should a homeowner go for additional information regarding mortgage options? They should seek out an experienced mortgage banking professional who works for a company with a good reputation in the mortgage industry.
Feel Free to contact me for recommendations
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