Good news for Mortgage rates in the short term!
..."Mortgage rates held steady this week ahead of the Federal Reserve's (Fed) policy committee meetings," said Frank Nothaft, Freddie Mac vice president and chief economist. "The Fed announced on January 27th that economic activity has continued to strengthen. It also noted that with substantial resource slack continuing to restrain cost pressures and with longer-term inflation expectations stable, inflation is likely to be subdued for some time.
For Sellers:
Despite a slow market and a slight decrease in the resale value of most remodeling projects, Realtors® report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by Realtors® who completed a recent survey.
On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000. Certain types of door and siding replacements, as well as wood deck additions all returned more than 80 percent of project costs upon resale. A steel entry door replacement – a new addition to this year’s list – recouped 128.9 percent of costs, followed by upscale fiber-cement sliding replacements at 83.6 percent. Wood deck additions recouped 80.6 percent of costs.
Contract activity for pending home sales fell after a surge of activity in preceding months to beat the original deadline for the first-time home buyer tax credit but remains comfortably above a year ago, according to the National Association of Realtors®.
$8000 for first time buyers and $6500 for repeat buyers, Must be under contract by April 30 but don't need to close until June.
Seller concessions will be reduced to 3 percent from 6 percent. This has not been formally announced, so look for an announcement sometime in mid February. If you are looking to have the seller pay your closing costs, their ability to do so will be reduced by mid summer. Seller concessions help the buyer pay their loan costs, etc. which makes it more affordable for the buyer to purchase.
Borrowers with a credit score below 580 will be required to have at least a 10 percent down payment. The minimum down payment will remain at 3.5 percent for all other borrowers. This should take effect by mid summer. If you have a score around this mark consider purchasing now.
Change in MIP is effective with case numbers assigned on/after April 5, 2010.
If you fall into the categories below for income, there may still be Bond Money to assist you! Rates as low as 4.625% for one mortgage with your own down payment down for FHA or No Money down for VA OR as low as 5.125% with 3% Down Payment Assistance GRANT!
GREAT OPPORTUNITY for you to buy as an Affordable way now before rates go up! Contact me for more details.Today it's been all over the News "Real Estate sales DOWN 17% in December". For perspective Home Buyers this is great news. From a negotiation standpoint, Home Buyers just gained the "Upper hand" and a huge psychological advantage. Is now the time to make the offer to get the price and terms? In 24 months from now looking back to today, I believe the answer is a resounding YES
