A MUST READ: Why are interest rising to 6% at the beginning of 2010?

"We're ending the year with mortgage interest rates practically even with their levels at the close of 2008. Mortgage finance giant Freddie Mac reported Thursday that average rates on 30-year fixed-rate loans hit 5.14 percent with 0.7 points this week.

That's up from last week's average of 5.05 percent and marked the fourth consecutive increase since rates bottomed out at a historic low (at least since Freddie started keeping track in 1971) of 4.71 percent in early December.

Rates also rose this week for 15-year mortgages, reaching an average of 4.54 percent with 0.7 points. Last week the rate was 4.45 percent.

But the rate fell slightly on 1-year adjustable-rate loans, which averaged 4.33 percent compared with 4.38 percent last week.

Mortgage rates were driven artificially low in 2009 by the Federal Reserve, which said it would buy as much as $1.25 trillion in mortgage-backed securities to stimulate the economy. That stimulus program is scheduled to end during the first quarter of the new year." (Washington Post)

READ MORE OF THE ARTICLE:
http://voices.washingtonpost.com/local-address/2009/12/30-year_mortgage_rates_rise_to.html

Call me at 301-452-4767 with any real estate questions!

Home-buying resolutions for the new year

This is one of the BEST articles I've read about getting ready to purchase a home.

EVERY FUTURE HOMEBUYER SHOULD READ THIS ARTICLE AS FOLLOWS:

"If you're planning to buy a house in 2010, here's my annual list of New Year's resolutions you should consider making.

-- Get your credit and finances in shape. If you want to take advantage of today's low interest rates, you need to have a credit score above 760. The higher, the better. If your credit score is below 620, you'll have trouble getting even an FHA loan.

-- Know how much you can afford to spend before you shop. Getting pre-approved has never been more important. You'll need documentation (W-2, tax returns, account statements, etc.), so get it together before you contact a lender. And shop around. Each lender sets its own fee schedule. Get the best deal by contacting four or five types of lenders.

-- Know the neighborhood, and be comfortable with it before you buy a home there. Houses are great, but neighborhoods that are littered with foreclosures may be unstable for years. Spend time in the neighborhood before falling in love with a particular house." (Washington Post)

READ THE REST OF THIS ARTICLE:
http://www.washingtonpost.com/wp-dyn/content/article/2009/12/17/AR2009121705023.html

DC Commercial Real Estate Is Getting a Face-Lift

Over the past few years, we in the commercial real estate industry have seen changes in the type of buildings being constructed. The newly constructed buildings are a far cry from the "box-like" generic look of Federal buildings throughout the city.

With the use of modern-style architecture and designs, developers are incorporating floor-to-ceiling glass windows and new finishes to attract upscale tenants to the DC commercial market. Despite the high inventory of available office buildings, there has been an increase in rental rates in the downtown DC area.

30-year-mortgage rates slide to their lowest level on record

I'm sure you have read all over about falling interests such as the Washington Post saying "The average interest rate for a 30-year mortgage dropped to a record low of 4.71 percent this week, pushed down by an aggressive government campaign to reduce borrowing costs."

But despite the news, the question still remains...WHAT DOES IT MEAN FOR YOU?

For first-time homebuyers, this is a dream come true as low interest rates mean you can afford more home than before.

For existing homebuyers, this is also a dream come true as low interest rates mean you refinance your existing home to take advantage of the savings.

For commercial retailers, this means the interest on loans will be lower and less expensive.

For home sellers, this is also good news because there will be more homebuyers in the market increasing sales in the otherwise winter slow-down period of the market.

This move by the Federal Reserves will help stimulate the market.

2009-2010: First-time homebuyer tax credit

In the land of homebuyers the first-time homebuyer tax credit can be at best confusing and cumbersome. I have been looking for ways to best explain the tax credit and here it is...



I hope this helps shed some light on your options.

How much can I afford?

This is the BIGGEST question every purchaser wants to know...But rarely listens.

The average purchaser will immediately begin looking at houses online, calling realtors to schedule showings, shopping online for beds and linens, and lastly using mortgage calculators to determine their possible mortgage.

There is no easy way to say it...this approach is WRONG!

In fact, the first step is for the purchaser to get preapproved before any home search begins.

I have heard every reason why the purchaser does not need to get a preapproval letter before looking at homes..."I just want to see what is out there before I commit" or "I don't want to give my personal information to someone."

These are all valid reasons for someone who is NOT serious about purchasing a home...or simply not educated about the homebuying process.

It is up to the realtor to educate the client on the importance of being preapproved before looking at homes. The simple answer is TIME.

Time is the most important asset in the real estate process: The realtor's time in searching for the perfect home and the purchaser's time in gathering the financial information to buy the home.

MAKE SURE YOUR REALTOR HAS YOUR BEST IN MIND...AND LISTEN!!

The First-time homebuyer tax credit...will it survive?

Without question the First-time homebuyer tax credit has done wonders to influence buyers to get involved in the real estate market.

Whether it's buyers looking for a deal or sellers trying not to lose their shirts. . .everyone is benefiting from this initiative which officially ends on December 1, 2009.

Now the question remains. . . "What NEXT?"