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Written by Patrick Powers
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Wednesday, 23 December 2009 10:59 |
 If you are in contemplating purchasing a house in 2010, you need to talk to a real estate professional today. The market conditions are currently a buyer best friend. The Federal Reserve is remaining stead fast in keeping rates low to stir up economic activity. You can currently buy a home with a 30 year fixed rate at just under 5 percent. These rates are historically unbelievable, and if you are hoping that rates will go lower, you are taking a huge gamble. Market conditions are showing a rebound in the overall economy which will inevitably increase interest rates. The only reason rates are still as low as they are is because the Federal Reserve is keeping them there. Market research done by the Mortgage Bankers Association is forecasting 2010 rates to be at 5.5% and 2011 rates to be at 6.0% (click here to see the forecasts). Some forecasters are predicting the mortgage rates to increase as much as a quarter percent in the first quarter of 2010.
Housing prices across the country are teetering between positive price increases and negative price decreases with a slight lean towards positive. Prices in the D.C. Metropolitan area have seen a few months of slow growth which means the bottom has ultimately been hit in our area. As a buyer, you probably won’t ever see prices at these levels ever again in your life. Buying a home is a long term investment and there is no better time than now to invest in a home for the future.
Lastly, if you are sitting on the fence about purchasing a home, the government’s $8,000 tax credit should have you leaping of that fence. You only have about 4 more months to take advantage of the government’s generous gift before it is gone forever. Take a look at one of our previously posted blogs to learn about the latest changes to the tax credit.
The combination of historically low interest rates, rock bottom housing prices and free money from the government is a something you will never see in your lifetime again. If you have even the slightest inkling of thought that you might buy a home in 2010, contact the Cook and Zook Team today. Our job is to inform our client base about the real estate market and we would be happy to talk to you.
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