There is good news on the home front for those of you who have been trying to decide if now is the time to buy a house. In plain language, interest rates are expected to drop .25 to .5 percentage points in the next few days and to stay low. This comes on the heels of the news that the Federal Reserve will buy $750 billion more in mortgage-backed securities and $300 billion in long-term government bonds.
Unfortunately, this won't help homeowners 
facing foreclosure or who have no equity in their homes in order to refinance. It also won't be any help to buyers who don't have stellar credit scores (740+ to get the best rates) and 20% of the purchase price for a down payment.
Those it will help are homeowners who aren't upside down on their mortgage who want to refinance and buyers who have great credit and the required down payment. And don't forget about the $8,000 tax credit for first time home buyers. A savvy buyer can cash in on the low rates that will be here later this week, then file an amended federal tax return after their home purchase and pocket the net credit before the end of this year. Call me if you have questions about this.
Spring is in the air, the weather is getting warmer, and there are plenty of houses on the market. It's time to buy!
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