They just keep dropping...

In case you have not heard Freddie Mac reports that long-term mortgage rates have moved down again.


This week interest on 30-year fixed loans hit a new low of 4.49 percent, compared to 4.54 percent last week and 5.22 percent a year ago. For those of you in position to take out a 15-year mortgage, they have hit a huge low dropping to 3.95 percent, down from 4 percent last week and 4.63 percent a year ago. Five-year adjustable-rate mortgages also reached a historic new low of 3.63 percent, down from 3.76 percent last week and 4.73 percent a year ago.

For those who have been on the fence about purchasing a home or refinancing these rates should prove enticing. It is unlikely that interest rates will soar anytime soon but why take chances. You would hate to be the one who says man I should have moved quicker on those rates.

These historic rates and the dramatic home bargains available allows one to buy much more home for the dollar than any time in the last ten years.

Time to get off the Fence, Sunset is coming….

The April 30 deadline for selecting a home and having it under contract is just weeks away. The National Association of Realtors has been in extensive discussions with Congress to gain an additional extension of the tax credit. Today the association announced that it is not likely to occur. The tax credit deadline combined with this week’s news that funding for the USDA Rural Housing Programs will run dry at about the same time and the Federal Reserve will no longer buy Fannie Mae and Freddie Mac mortgage backed securities signal it’s time to get off the fence and buy one of today’s bargains.


For many the tax credit program when combined with the USDA program can make all the difference in the world. Waiting for the perfect property or for the bottom of the market might prevent many from realizing their homeownership dream. For the rest of us fence sitting can prove equally damaging. Waiting, waiting, waiting, and then bam next thing you know it interest rates have risen and you can afford less house than before. By waiting you may have a slightly better price on the house but that added interest has moved you just out of the range of affordability.

If you are waiting on the fence do not fall prey, programs will be ending and interest rates will be rising. The programs have been fantastic, prices and interest rates are at historic lows, do not miss out the party is about to end.