Mortgage rates are offering good and bad news these days. The good news is that rates have hit 60 year lows, much better than the 50 year lows met a week or two ago. The bad news is that many cannot take advantage of these rates thanks to a lagging economy and a sagging job market. Ideally these low rates are great for the economy, saving people money on their monthly mortgage payments and leaving them more money to spend elsewhere.

What is the current low rate? 4.12% for a 30 year fixed rate mortgage. Who can get this rate? Someone with impeccable credit, steady employment, and money for a down payment on a home. A low mortgage rate can save a home buyer a significant amount of money over the lifetime of a loan, so refinancing real estate could be worth looking into as well.

The low rates are a product of the poor state of the nation’s economy. The people who benefit the most are, unfortunately, those who have been hurt the least, people who still have great credit. Low rates are great for buying real estate, so if you can qualify for a loan you may just want to get out and take a look at today’s great deals!

Click here to read “Mortgage Rates Attain New All-Time Record Lows Again”, from Realty Times.

It is a good time to be a landlord. The rental market is a strong one, a by-product of the nation’s housing bust that has made home ownership harder for many. A great deal of would-be home buyers are still standing on the sidelines waiting for better economic news, better employment rates, and the ability to acquire a loan. These are the renters that have created a demand for housing that has filled up rental units and increased the number renters significantly over recent years. This increase in renters is great for landlords.

The age old theory of supply and demand is making it possible for many landlords to raise rents. There is more competition, and while a slow economic recovery does mean that landlords can’t raise rents too high, they can fill their units and charge more than they have when their units are located in competitive markets.

It’s a good time to be a landlord. Affordability levels are at generational highs, mortgage rates are low, and inventories are high. For those who can afford to buy with cash or acquire loans to do so, buying rental property could be a great investment. While being a landlord is not without its headaches, it certainly is an investment that has the opportunity to pay for itself over time. This could be a great time to consider becoming a landlord.

Click here to read “Growing Rental Market Benefits Landlords” by Phoebe Chongchua at Realty Times.

It is a buyer's market

When it comes to real estate the general sentiment appears to be that of putting 2009 in the past and looking forward to a brighter 2010.  Looking at where we are and where we are headed as far as real estate goes will take us from the present into the future.  Currently home values are affordable, because prices are low and interest rates are low.  Both of these low levels add up to the fact that it is a great time to be a buyer when it comes to real estate.

Interest rates have been hovering at 5% or lower for the better part of the past year, a trend that cannot be expected to continue.  As the market stabilizes more and the economy gets better, interest rates will rise.  While home prices still may drop in many areas of the country, they will not drop much more.  Areas that are less affected by foreclosures, short sales and REO properties are likely to level out faster than other areas due to the lack of distressed sales in their inventories.  A rise in interest rates may bring real estate prices down to sell but the days of 20% and 30% decreases appear to be unlikely.

In a nutshell now is a great time to buy if you have been waiting for the right time to plunge into the market.  Take advantage of low interest rates while they are here.  It is a buyer’s market now, it won’t be forever.

For an interesting analysis of the real estate conditions and a forecast of 2010, by CNN Money, click here.

The Senate has approved an extended and expanded tax credit for home buyers

On Wednesday the senate passed an expanded tax credit.  The First Time Home Buyer Tax credit has been seen as a huge success and its expiration on November 30 has had many feeling nervous about what its end will mean.  Those fears can now be put aside.  While the bill still has to pass through the House, which it is expected to do next week, is was overwhelmingly approved by the Senate in a 98-0 vote.

What is new and improved with the extended and expanded tax credit?  The new and improved tax credit is still for first time home buyers but will also include home buyers who have owned their current home for 5 years or more.  The credit is up to for $6,500 for these current homeowners and remains at up to $8,000 for First time home buyers or home buyers who have not owned a home for the past three years.  The tax credit  is income restricted, an individual cannot make more that $125,000 annually and a couple cannot make more than $225,000 jointly.  A home must be  a primary residence and valued at $800,000 or less.  Buyers must have a property under contract to purchase by April 30, 2010, and the property must close by June 30, 2010.

The passing of this extended, expanded tax credit is good news on the real estate front and is expected to be the last tax credit offered for a long time to come.

There has been a push in the House to get the First Time Home Buyer Tax Credit extended, as well as expanded.  Last week the House passed a bill extending the $8,000 tax credit into next year for military, diplomatic and intelligence workers who have been working overseas.  This bill’s passage leaves many hopeful that an extension for regular first time home buyers will pass as well.  Much of the increase of real estate sales has been attributed to the First Time Home Buyer Tax Credit.

There is a strong sentiment to extend the First Time Home Buyer Tax Credit because the real estate market is not seen as completely stable yet.  The hope is that if the tax credit is extended then real estate sales will continue to improve.  If the credit gets opened up to include all home buyers, as some would hope, then real estate sales volume is expected to pick up quite a bit.

For the latest from Realty Times regarding the tax credit click here.

Now could be the perfect time to invest in vacation real estate

There are many questions when it comes to investing in real estate today one of which is, is it a good time to invest in vacation real estate? Currently it is a buyer’s market almost anywhere in the Country, as well as many locations overseas. If you can acquire financing or have the extra cash to invest real estate has always been seen as a good investment because while it may take its dips, historically it has always rebounded. Many signs point to it being a great time to invest in vacation real estate. These signs include:

• Low interest rates

• A drop in home values

• Fewer buyers, therefore less competitive market place

• Lower property taxes due to drop in home values

• Higher inventory, therefore more homes to choose from

If you have been wanting to purchase or invest in a second home there hasn’t been a more attractive time to purchase vacation real estate in quite some time.

For more information on investing in vacation real estate visit the Realty Times web site.

A Realtor can be an invaluable tool when buying or selling real estate

An often perused question is: Should I use a Realtor or not?  People often underestimate Realtors and their importance in a real estate transaction.  On both sides of a deal a real estate professional can be an invaluable asset, helping to keep deals together and run more smoothly.

For sellers Realtors are valuable in a number of ways.  Realtors know the local market and how to evaluate the price your home should be sold at.  A real estate professional will advertise, market and expose your home to other real estate professionals as well as the community at large, not to mention the large customer base that they may already have.  A Realtor can help you set your home up for success by helping you present your property in a way that will appeal to potential buyers.  Realtors are indispensable when it comes to contracts and making sure each step is carried out to the seller’s best interest.

For buyers a real estate broker can be an incredibly helpful tool when looking for real estate.  Not only does a competent Realtor know his local real estate market and what is available but he also knows the community, its amenities and all that it has to offer.  A Realtor will write a contract when a buyer has found his ideal property and will help the buyer follow through with each step until closing.

In a nutshell, Realtors are incredibly helpful in diminishing the stresses involved with buying and/or selling real estate.  Contact an experienced Realtor in the area you are thinking of buying or selling property in today.