January 29, 2009
Freddie Mac released the results of its Mortgage Survey in which the 30-year rate averaged 5.10 percent for the week ending January 29, 2009, down from last week when it averaged 5.12 percent. Last year at this time, the 30-year averaged 5.68 percent.
The 15-year mortgage this week averaged 4.80 percent, unchanged last week when it averaged 4.80 percent. A year ago at this time, the 15-year averaged 5.17 percent.
“Mortgage rates held steady this week,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The index of leading indicators rose 0.3 percent in December, the first increase in 6 months, fueled by an expansion in the money supply. However, the Federal Reserve acknowledged in its January 28th policy committee statement that since December the economy has weakened further.”
Freddie Mac also went on to point out in the news release that housing affordability reaching its highest level since 1973, as measured by the NAR’s monthly affordability index and help to explain the 7.0 percent increase in existing home sales in December.
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Uncategorized | Tagged: athens ga mortgages, decrease in mortgage rates, housing affordability athens ga, mortgage rates in athens ga, mortgage rates slide, mortgages athens ga | 
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Posted by hankbailey
January 29, 2009
The $7,500 tax credit that was passed last year is encouraging some first-time home buyers to become homeowners before the credit expires on July 1; NAR estimates that it will create 66,000 additional sales. But more can be done, and NAR is working with Congress and the new administration to help buyers, sellers and investors in today’s market.
Currently, the program requires qualified buyers to repay the credit, without interest, over 15 years, essentially giving these buyers an interest-free loan. Eliminating the repayment feature could encourage an additional 202,000 home sales. And if the tax credit were extended to all home buyers without a repayment feature, it could result in an additional 555,000 home sales.
What is interesting is if you look at the NAR’s Tax Credit Survey, it shows that the tax-credit was put together with some deficiencies in the minds of first-time homebuyers who participated in the survey.
According to the Survey, “When asked to identify the obstacles to the effectiveness of the First-time Homebuyer Tax Credit, the repayment feature of the credit was by far the most objectionable feature.”
Responses were as follows (respondents could check all that apply):
- The credit must the repaid (71%)
- Consumers view the repayment of the credit as adding to their debt load (60%)
- Applies only to first-time homebuyers (43%)
- Credit is not available as cash at settlement (42%)
- Income limits (23%)
- Tax credit is not large enough (15%)
There was plenty more where this came from, and can be accessed through the link in this post. In summary, it seems like this good idea of a tax credit needs to be cleaned up and broadened before it really does help stimulate the economy!
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Uncategorized | Tagged: $7, 500 tax credit, athens ga first time homebuyers, first time home buyers, first time home buyers athens ga | 
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Posted by hankbailey
January 29, 2009
According to a press release from the Federal Reserve Board, “The Federal Open Market Committee decided today to keep its target range for the federal funds rate at 0 to 1/4 percent. The Committee continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.”
They went on to say that, “In light of the declines in the prices of energy and other commodities in recent months and the prospects for considerable economic slack, the Committee expects that inflation pressures will remain subdued in coming quarters.”
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Uncategorized | Tagged: athens ga homes, federal reserve, mortgage rates, the fed | 
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Posted by hankbailey
January 29, 2009
As the seller, you can control three factors that will affect the sale of your home: 
- The home’s condition
- Asking price
- Marketing strategy
However, it’s important to note that there are numerous other factors that influence a buyer, and you need to understand these consumer trends when you enter the sellers’ market. The more your home matches these qualifications, the more competitive it will be in the marketplace. Your real estate agent can advise you on how to best position and market your home to overcome any perceived downsides.
Location
Unfortunately, the most influential factor in determining your home’s appeal to buyers is something you can’t control: its location. According to the National Association of REALTORS®, neighborhood quality is the No. 1 reason buyers choose certain homes. The second most influential factor is commute times to work and school.
Size
While some buyers want to simplify their lives and downsize to a smaller home, home sizes in general have continued to increase over the decades, nearly doubling in size since the 1950s. Smaller homes typically appeal to first-time home buyers and “empty nesters,” or couples whose children have grown up and moved out.
Amenities
Preferences in floor plans and amenities go in and out of fashion, and your real estate agent can inform you of the “hot ticket” items that are selling homes in your market. If your home lacks certain features, you can renovate to increase its appeal, but be forewarned: That’s not always the right move. Using market conditions and activity in your neighborhood as a gauge, your agent can help you determine whether the investment is likely to help or hinder your profit margin and time on the market.
If you are a Buyer looking in on our “lesson for Sellers,” and plan to purchase a home in the Greater Athens area, please feel free to use this link to Search the Athens MLS! While on the Georgia MLS you can search for homes, create a User account to save favorite property searches, email property searches to friends and family, or request more information!
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Posted by hankbailey
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