National mortgage rates on 30-year fixed mortgages climbed 1 basis point from 4.78% to 4.79% on March 7, 2010, according to Zillow Mortgage Marketplace. As a comparison, state rates ranged from a low of 4.66% (ID) to a high of 5.08% (MO).

Compared to the week prior to March 7, 2010, the national 30-year mortgage rate is up 1 basis point from 4.78%. Compared to three months ago, the 30-year rate is up 15 basis points from its average rate of 4.64%.

The news was released today that the national average intrest rate is back under 5%.  This may be the last time for awhile that rates will be this low.  If you are looking to buy remember the tax credit is still there until April 30th.  If you have been putting off refinancing this may be the last time rates go under 5%.

Mid Atlantic Funding is now a qualified partner of the Department of Veterans Affairs.  What this does is offer financing to eligible veterans or their surviving spouses with the intention of purchasing a home up to 100% financing with no private mortgage insurance and refinance up to 90% of reasonable value.

What a preapproval means is a mortgage broker has verified that you qualify for a mortgage and the time frame for which the approval is good for.  This is a must first step in buying a home.  Most realtors will not even show houses without knowing that you have been preapproved.  The biggest benefit for a preapprovalis that now you will know how much of a home you can afford and how much it will cost you to get into that home.  Preapprovals are free and should be taken advantage of months before you look at that first home.

The first time home buyer tax credit allows a buyer to enter an agreement with a seller by April 30, 2010 and close on the house by June 30, 2010. First time home buyers are defined as anyone who has not owned a home for the past 3 years. First time home buyers will get an $8,000 tax credit. Other home buyers, who have owned their current home for at least five years, are eligible for a $6,500 tax credit. Income limitations have been increased to $125,000 for single filers and $225,000 for joint filers. The purchase price of the home must be less than $800,000.

A tax credit is a bottom line number which means it is cash to you. If you are a first time homebuyer you would get a $8,000.00 refund from Uncle Sam.

This spring offers programs and incentives to buy home that will go away in the near future. If you are looking to buy acting now is in your best interest for a number of reasons:

The Federal Tax Credit of $8,000.00 for first time home buyers. This tax credit is set to expire on April 30, 2010; you must be under contract by this date to receive the credit. The tax credit is not just for first time home buyers but also for people who have owned homes for five years.

HUD and foreclosed homes, In the winter and early spring months HUD is more likely to take a lower offer due to lack of bids on the properties. When traffic picks up so will the prices.

Interest rates are going up. Today the fed announced that they will be raising the rates in the next six months. As the economy gets better, interest rates will rise.

New lending guidelines (this is my favorite). Banks in the past year have tightened the lending guidelines and in the next few months it may get tighter. Minimum FICO scores may go up and a heavier down payment may be required.

This is the best time to buy: you have low rates, discounted houses, and an $8,000.00 tax credit to first time home buyers.

Below I have linked a great article on helping you establish credit. This will only work if you never established credit before or if you are re-establishing credit.

http://www.bankrate.com/finance/credit-cards/best-ways-to-establish-credit.aspx

December was a bad month for home sales especially in Lackawanna County which was down over 40% from the previous month. The good news is that traffic is picking up and sales should start to rise in the next few months with the $8,000.00 homebuyer credit still available until the end of April. To read more see the article below:

WASHINGTON — New home sales posted an unexpected drop in December, capping the industry’s worst year on record and fueling concern that the housing market turnaround could falter.

Last month’s results were the weakest since March and were only 4 percent above the bottom last January. The data showed the housing recovery remains limp despite newly expanded tax incentives to spur sales. Many in the industry, however, expect sales to pick up as the April 30 deadline for the tax credit nears.

Some builders are nervous. “If we don’t see better data in March and April, we’re going to have a big problem,” said John Wieland, CEO of Atlanta-based John Wieland Homes and Neighborhoods.

But traffic from potential buyers has picked up in recent weeks, he said, and will increase even more if consumers become more confident in the economy’s recovery.

“People are looking ahead and saying, ‘This recession has gone on a long time and I’m going ahead with my life,’ ” Wieland said.

Nationwide, new home sales for December fell 7.6 percent to a seasonally adjusted annual rate of 342,000 from an upwardly revised November pace of 370,000, the Commerce Department said Wednesday. Economists surveyed by Thomson Reuters had forecast a pace of 370,000 for December.

Only 374,000 new homes were sold last year, down 23 percent from a year earlier and the weakest year on records dating back to 1963. December’s sales were nearly 9 percent below the same month last year. This year, the National Association of Home Builders is forecasting more than 500,000 sales.

copyright 2010 timesleader.com

Hello all, welcome to the Mid Atlantic Funding news blog. Mid Atlantic Funding Inc. is Northeastern Pennsylvania’s most trusted Mortgage Broker. We are located in Dunmore Pennsylvania.

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