The Pending Home Sales Index rose slightly in December, climbing 1 percent from November. While this may seem like good news for all concerned, what’s waiting behind the spring market is surely some type of decline if things do not change.
Expected to change are the conditions with which are helping home buyers buy home now.
- FHA home loans are still allowing 6% seller concessions – as it currently stands, this will cease after April 2010 where only 3% seller concessions will be allowed.
- The $8000 home buyer tax credit for first time home buyers or the $6500 repeat buyer tax credit will be ending as of April 30, 2010. You can guarantee yourself this tax credit if you qualify if you have a home under contract by the end of April as long as you close by the end of June 30, 2010.
- The Fed’s are threatening to cease buying mortgage backed securities which will likely drive home mortgage interest rates up. Some predictions are that rates will be above 6% by the end of the year.
What are all of these items pointing to: if you are sitting on the fence about whether to buy or not, and you are qualified to buy – you may want to contact me to get your home search underway. You don’t want to get caught with deteriorating buying conditions when you want to start your home buying process if you don’t have to.
