There are some important changes in the real estate market:
- The Fed stopped buying Mortgage Backed Securities at the end of March (which means home loan rates may soon be on the rise),
- The First-time and Repeat Home Buyer’s Tax Credit expired on April 30th.
- April 4th, 2010 FHA will raise it’s “Up Front Mortgage Insurance Premium” for buyers from 1.75% to 2.25%. This amount will still be financed into the loan.
- FHA maximum seller contribution to the buyer for closing & prepaid costs will change from 6% to only 3% in the near future. No specific date set for this change as of this email date.
Many buyers & sellers have set on the side lines the past 12 to 18 months waiting for interest rates to go lower. This chart shows the historic 30-year fixed mortgage rate and how it has never been lower that it is now and will probably never be this low again within the current real estate cycle.
Who do you know who may be thinking of buying or selling a home? If you or any of your friends, family members, neighbors or colleagues want to learn more about how you can benefit from the current market, give me a call or email – I’d be happy to explain more about the opportunities at hand.
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