May 26, 2020

What is happening with interest rates?

Mortgage rates are near historic lows, BUT the Federal Reserve Board’s mortgage backed securities purchase program is set to expire. The Fed has already scaled back its purchases over the last few months, allowing rates to rise on mortgages. Once the Fed stops the purchases entirely at the end of the first quarter, rates are expected to rise a half per cent or more.

The deadline for the Home Buyer Tax Credit is for contracts written on or before April 30th (and set to close no later than June 30th).
 

All of this adds up to a big “don’t wait!” If you or someone important to you is thinking about buying a home, please have them call or email me today.

HOME BUYERS’ CREDITS . . . OLD AND NEW

The $8,000 first time home buyer tax credit has been extended.  Not only was the first time home buyer tax credit extended, a NEW $6,500 tax credit for existing homeowners who have lived in their homes for at least five of the last eight years was added to the legislation.   

The move-up market has been stalled and even though the first time home buyer market was helped along with the initial tax credit it was not enough to move the “middle” market.  This “middle” market desperately needed this new jump start. 

These tax credits will be available through June 30, 2010; however, Buyers who qualify for either of these credits MUST enter a binding contract before April 30, 2010.   The bill also increases the income cap to $125,000 for a single person and $250,000 for a couple.  And the credit is available for all homes purchased for $800,000 or less.