RATES ARE STILL LOW & LUXURY MARKETS ARE IMPROVING, TOO!

Dear Friends,

For those home buyers who could not tap into the federal tax credit before it expired on April 30th, they are finding comfort in the continued low mortgage rates, which by the way dropped again this week to near-record lows. According to Freddie Mac interest on 30-year fixed loans averaged 4.78 percent compared to 4.84 percent last week, while the 15-year rate slipped to a new low of 4.21 percent from 4.24 percent.

As previously reported, the favorable borrowing costs will improve affordability and offset the impact of the tax credit program ending. However, please keep in mind that rates will increase as our economy improves.
Signs of improving economic conditions could lead Federal Reserve Chair Ben Bernanke to raise key interest rates, driving up mortgage rates.  As the evidence shows, more consumers are paying their bills on time with both American Express and Target Corp. reported lower delinquency rates in two years during the second quarter.  In another sign of economic improvement, fewer banks reported tightening lending standards this month, which lends to the reason consumer borrowing rose for the second time in three months.

“If lending standards start to stabilize, that’ll be another reason to remove the emergency measures, including the zero rate,” says Jay Bryson, a senior global economist at Wells Fargo Securities LLC in Charlotte, N.C., who formerly worked at the Fed in Washington.  So after a tough 2009 and 2010, we are seeing solid evidence of the economic improvement, for example. The luxury home market is on the upswing. Sales are up 32 percent from the previous year of homes in price range of $2 million to $5 million in the first quarter and totaled 2,461.  Realistic selling price, increased buyer confidence, and improved financing options all contributed to the increased sales.

But as solid market improvements appear, there are still concerns.  Evidence shows that luxury homes are affected more by the movement of the stock market, and "if the markets don't recover soon, it will scare people and hurt demand for high-end homes," says Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley.

We are not out of the woods, but we are definitely doing better!  Make sure you have all the tools necessary to buy, sell or finance your next home.  Call me now, for a "Free Market Analysis" or to Short Sale Your Home at NO COST to You!  Happy Memorial Weekend and stop by Homes With My to begin your property or loan search now!

Namaste.

Maximizing Your Buyer's Credits

Dear Friends,


Thanks for sharing a few minutes with me.  Here is the latest news in our wonderful Real Estate and Lending Markets here in sunny California.  If you are not in contract by today, April 30, 2010, then you have missed First Time Home Buyer (or FTHB) tax credit of $8,000! But if you contact me today, I will show you how to MAXIMIZE your buying credits for use at your discretion on fees or appliance AND get other tax credits.  Contact me today and let me show you how or research anytime, day or night at your leisure at HomesWithMy!

Here is a Fun Facts to pass along...  Did you know that 65% of the FTHB said that the tax credit was not the most important decision in their home buying process? That 61% said the most important factor was having a low, fixed-interest rate for 30 years. Well, great news for those who are still looking to buy a home!!! Rates are as low at 4.5% for owner-occupied properties and 5.25% for investment properties!! With the Federal Reserve leaders leaving the federal funds rate UNCHANGED it makes buying your next home, whether your first or investment, very affordable!  Contact me today!

For those needing information on how mortgage payments affect your credit scores, I added updated information to the article, "NO MORE STATE TAX ON FORGIVEN DEBT." Se Habla Espanol. 
Contact me now to discuss your home buying options and let me show you how to get the most buying credits and tax credits available!

Kind Regards,

Myeshia Harris