Extend the Tax Credit!!!

Life has been good the last year or so for first time buyers. With an extra $8000 in their pocket, the prospect of investing hundreds of thousands of dollars in a new home has been a lot better. For those who have waited or weren't ready, what does the future hold? Will the tax credit be extended?

The National Association of Realtors chief economist, Lawrence Yun sure hopes so. He believes an extension of the tax credit is essential to preserving the incentives for financially qualified buyers. Speaking of which, I have noticed that becoming financially qualified is much more difficult than it was a couple of years ago. Banks and other lending institutions are tightening restrictions on mortgage loans to the point that us realtors are pulling our hair out! For those of us who have been in the business more than 15 years, it's simply back to the old days. This is how it used to be. "You mean you actually need to have money for a down payment?!" Uhhh... yea, you do. You also need to prove where that money came from. 100% financing and no documentation loans are all but over. That's what got us into this housing crisis in the first place.

So, back to the real issue... will we see an extension of the tax credit? I don't know, but I sure hope so too. In Omaha, we have seen an impressive surge of first time buyers come into the market. I have even seen a few competing offers on a few listings. I didn't see that happening in a down economy! Those new homeowners are excited about using their tax credit to add on to their home, put in a new kitchen, or invest/save. We have also seen the Omaha metro's inventory go down by 17% in the last year or so, and the entry level market has seen pending sales go up by nearly 50%!!! That's huge people. I'll keep you posted on the tax credit news....

Stay tuned...

Oh By the way... I'm never too busy for any of your referrals!

I'm waiting for 4% rates to come back...

Well, I got news for ya... it ain't gonna happen any time soon. In fact home mortgage interest rates will soon be on the rise. By spring time, experts expect rates to be above 6%. Those are still very good rates, historically speaking, yet not quite as favorable as rates are currently (in the 5's). Why is this... do you ask? Well, there are a number of factors involved. The main issue today is the federal reserve.

The Fed has been buying lots and lots of mortgage backed securities lately to help pull this economy and housing market out of the gutter. Well... it's been working! The down side to that is there will be a point of diminishing returns. Eventually, the Fed has to stop buying all those mortgage backed securities. When that happens, and it will soon, mortgage rates will rise to the 6's at least. They are trying their best to make this a gradual rise, but if you or someone you know is waiting to buy until interest rates are down, wait no longer. You first time buyers, especially, have about three weeks to get a new home under contract. Call, text, email, fax the Beers Team with further questions about this or anything else involving real estate. We feel that educating our clients is our number one priority!

Oh By the way... I'm never too busy for any of your referrals!

Big Surge in Mortgage Applications!

The first week of 2009 proved to be a busy one for mortgage lenders. Rates for a 30 year fixed rate mortgage are hovering and even dipping below 5% for some applicants. This is a major cause for the mortgage applicant index to be higher than it's been since July 2003. Now that the federal government is committed to buying mortgage-backed securities to keep borrowing costs low, many experts predict that rates will stay low for the next quarter. Note to all first time buyers out there, NOW'S THE TIME to buy. House values have yet to be effected by the rally of mortgage applications.

Oh By the way... I'm never too busy for any of your referrals!