March Update:
The National Association of Realtors reported a year-over-year rise in Existing Home Sales for January 2010. According to the association, existing homes sales are up over 11 percent from January 2009 levels. At the current pace, existing home sales are expected to reach over 5 million units for the year. Total housing inventory is down 0.5 percent to 3.27 million units nationally.
Mortgage backer Freddie Mac reported an average commitment rate for a 30-year, conventional, fixed-rate mortgage hovering in the 5 percent range in January. This is up just slightly from the high four percent ranges available in December 2009. Buyers and homeowners alike a great opportunity to lock in these historically low interest rates before the they go back up.
Finance Q and A:
Q: Who is eligible for the US Government's Extended Home Buyers Tax Credit?
A: The Extended Home Buyers Tax Credit offers current homeowners and first-time home buyers alike an incredible tax-saving opportunity when they buy a home through April 30, 2010. First time buyers, who haven't owned a primary residence in the past three years, are eligible for a tax credit of 10 percent of a home's purchase price, up to a maximum of $8,000. Current homeowners are also eligible for a tax credit of their own. Homeowners who have lived in their primary residence for 5 consecutive years of the past 8 are eligible for a tax credit of 10% of a home's purchase price, up to maximum of $6,500.
The tax credit is a dollar-for-dollar reduction in the buyers tax liability, and does not have to be paid back as long as the buyer remains in their home for three years or more. This is a once-in-a-lifetime offer to have Uncle Sam help you buy a house.
Certain conditions apply. Learn more about this program by talking to your mortgage lender today! Don't let this opportunity pass you by!
Tip of the Month:
This spring will prove to be one of the more active market in recent history. Because of increased competition, it is very important that buyers be pre-approved for their home loan ahead of time. If a seller gets two competing offers, they typically give extra consideration to offers made by pre-approved buyers. Make the most of your home buying experience by getting pre-approved for your loan today.