What Does It Look Like in the Market Place?


Well, you are listening to me! So many sellers and buyers have decided this is the time to sell and buy. Congratulations to them and you! I believe this is a good decision. Why do I think that this is the perfect time?

The first reason is that interest rates are as low as you are going to see them for many years to come. We are at 4.25% and then, we drop a little below, then bounce back to 4.50%. Without the Tax Credit Programs for both first time buyers and move up or move down buyers that ceased at the end of April, the interest rates will climb again. We, as taxpayers, must pay back what we have spent and given away as incentives for the economy.

FHA is the major mortgage loan that is available and being used, but changes are coming which will knock out even more of our buyers that can qualify. The upfront MIP (Mortgage Insurance Premium) is rising from 1.75% to 2.25%. The down payment will increase from 3.5% to 5% down payment. Minimum FICO credit score will increase to 640 compared to 620 and 580 as is required now. Now, you say, I am not in that lower price range, so why should it affect me? It does because the first time buyer must buy, so that seller can buy your house and so forth in the “domino” affect.