It's no secret the housing market continues to endure tumultuous times. Despite the Federal Reserves best efforts to keep current mortgage rates at or near historic lows, it's becoming painfully obvious we have yet to see rock bottom. With an excess of available homes amid the existing recession, foreclosures are ongoing and property values continue to decline. Some analysts predict this trend can take another year or two to correct itself.
The Federal Reserve has recently slowed their pace of purchasing mortgage-backed securities in an effort to prolong low mortgage interest rates. This approach is intended to also buy time for the housing market to help correct itself. The Federal Reserve recently surpassed the $1 trillion mark of the $1.2 trillion they committed to purchasing nearly one year ago. With the slowdown, it is anticipated current mortgage rates will remain relatively low, possibly through the first quarter of 2010 before they begin to rise, with some believing rather sharply.
In addition, Congress recently extended the $8,000 first-time homebuyer tax credit through April 30, 2010, and has also instituted a new $6,500 "move up" homebuyer tax credit for existing homeowners who have lived in their current home for five consecutive years out of the past eight years.
Despite all of these incentives put into place by the federal government, mortgage applications for both purchases (down approximately 4.7%) and refinances (down approximately 1.4%) are growing smaller. We are in the midst of unprecedented times in which the combination of such efforts has never been seen before and will likely never be seen again. Yes, property values are still declining, but they will not continue on that path much longer. And neither will the historically low current mortgage rates and the extraordinary federal tax credits. It is my hope that this brief editorial has gotten you to start thinking about potential opportunities. If that is the case, it's time to at least explore these options before you, before they are gone.
Total Mortgage Services has avoided committing on problematic or difficult mortgage loans that have forced other mortgage lenders into closing their doors. That said, the time to contact a licensed mortgage professional is now, before it's too late. The world of mortgages is difficult enough, so it is vital to have an expert who has the experience and knowledge working for you.
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