September Market Update:
Freddie Mac reported that the national commitment rate for a 30-year conventional fixed-rate mortgage is hovering in the mid to high-4 percent range. Low interest rates have rallied investors to the existing-home markets.
According to The National Association of Realtors® (NAR) Investors accounted for nearly one-fifth of all existing home sales during the month of July. This is nearly a 50 percent increase over June's sales figures. According to the July report, existing-home sales are on pace to reach 3.8 million units for the year, down from the 5.3 million units estimated in June.
Despite the slowdown in existing-home sales, prices are up nationally. It is too early to know whether this is the start of a new trend or a short term fluctuation. However, one thing is certain: today's low rates provide extended borrowing power for the qualified buyer. Contact us for more information on today's best programs.
Finance Q and A:
Q: What's the best way to raise a credit score when applying for a mortgage?
A: Your credit score is a composite snapshot of your credit history, and is not likely to raise much in a short period of time. Generally speaking, you want to make sure you pay your bills on time, keep outstanding debt levels to a reasonable amount for each account, and avoid closing accounts you've successfully paid-off and managed. Don't lose hope if you have less than perfect credit, there are still good loan programs out there for responsible borrowers. Contact your mortgage planner today to learn which programs might be right for you and take advantage of today's low interest rates!
Tip of the Month:
How would you like to save 30% on select home improvements in 2010? A provision in the American Recovery and Investment Act offers a nice tax credit to home owners who make energy-saving improvements to their existing home. Windows, doors, water heaters, insulation and other products are eligible. The tax credit is equal to 30 percent of cost of eligible product, up to $1500 for all improvements combined during 2009 and 2010. Whether you are buying or refinancing, why not let Uncle Sam help you pay for those needed home improvements! Contact your mortgage consultant today for refinancing options.