Lakewood Ranch, FL Blog

The Federal Reserve decided yesterday to pump a trillion dollars into the economy, including $300 billion into government bonds and $750 billion into mortgage backed securities.  These moves could result in 4% mortgage rates as early as today.  That is an incredible rate and many analysts are suggesting that this move may actually turn the housing decline around.

Expect banks to be swamped by mortgage applications.  There is a website:

http://www.makinghomeaffordable.gov where you can determine your eligibility for government help.

There hasn't been much good news in the housing market lately but for first time homebuyers and those who have not owned a principal residence in the past three years, the government is now providing a $8000 tax credit for purchases made in 2009.  It is easy to get, doesn't need to be repaid, and is a true tax credit.  For example, if you would normally owe $9000 in income tax for 2009, you'd pay $1000.  If you'd owe $5000 in tax, you'd get a check back for $3000!  There are some rules, of course, but it appears to be a pretty good deal with not alot of strings attached.

For complete information go to: http://www.federalhousingtaxcredit.com/2009/home2.html