Money Saving Tips for Real Estate Home Buyers

Only a minority of gift-givers have sufficient financial resources to give the gift of a home during this holiday season. An increasing number of family and friends, however, are helping first-time home buyers (and other potential home owners) with financing. People who step in to help loved ones with financing for homes are known as "angel investors." This term seems especially appropriate for investors who help relatives get into a home for the holidays. The expiry of the Federal First-Time Home Buyers' Credit, as well as the recent economic downturn, has caused more people to become "angel investors."

Habitat for Humanity

Yet in addition to affluent gift-givers and angel investors, a large percentage of the population are helping families receive the gift of a home. Internationally, people are supporting Habitat for Humanity – either through donations or with physical labor. Habitat For Humanity International (HFHI) (referred to usually as Habitat for Humanity or Habitat) has offices in five major areas around the world. They operate in the US and Canada, Europe and Central Asia (Bratislava, Slovakia); Latin America and the Caribbean (San Jose, Costa Rica), Africa and the Middle East (in Pretoria, South Africa), as well as Asia-Pacific (Bangkok, Thailand).

The operations of the organization in each main area are managed by a national office. Community Habitat offices act as partners with Habitat for Humanity International. The national and local offices handle the selection of the building site and partner family, fundraising, house construction, and mortgage servicing.

Habitat is a non-governmental and non-profit organization devoted to building affordable housing for people who need a helping hand. The homes are built with volunteer labor and are not sold for profit. Guidelines for the program may vary slightly around the world. For example, certain locations outside the US charge interest as a measure of protection against inflation.

Habitat for Humanity is a prestigious organization. In 1984, former U.S. President Jimmy Carter, and his wife Rosalynn Carter, got involved in Habitat and greatly raised the organization's profile. In 1996, U.S. President Bill Clinton awarded its founder, Millard Fuller, the nation’s highest civilian honor.

By 2010, Habitat for Humanity had built more than 350,000 houses providing shelter for over 1.75 million people in more than 5 continents and 3,000 communities worldwide. The organization does not just provide a handout. The program offers assistance but allows recipients to maintain their dignity and play an active part in the process.

Usually, new homeowners are expected to put 'sweat equity' into their own or other Habitat homes .Any mortgage payments from homeowners are deposited into a locally-administered "Fund for Humanity." The proceeds go towards future construction.

Holiday Homes

Nothing could be better than giving or receiving a holiday home. Remember that you can donate your money, time, or effort to a local project .Read about a few of the latest new Habitat home owners during this 2010 holiday season.

Habitat finishes two homes just in time for Christmas

Habitat delivers holiday home

Family gets new home for holiday

Have You Ever Helped Or Benefited From The Habitat Program?

Image courtesy of orangehabitat.org

If you could catch a flight from the closest major airport to Santa's home in the North Pole, you would have to depart from Fairbanks, Alaska. Yet if a trek to the Geographic North Pole sounds a bit daunting, you cam always visit the 'City of North Pole' – a ten-mile drive southeast of Fairbanks. Actually, the City of North Pole is a 'jolly good' alternative.

City of North Pole

This scenic town with more than 2,200 residents is known as the place "where the spirit of Christmas lives year round." The City of North Pole offers year-round Christmas decorations, seasonal street names, and light poles decked in a candy cane motif. There is even a Santa Claus Lane with three consecutive traffic circles within a quarter mile.

The world-famous Santa Claus House is the most popular attraction in this northern town. Even mailing a letter takes on a whole new meaning in this festive city. Mail postcards from the U.S. Post Office and your family and friends – young and old – will have the pleasure of receiving mail from North Pole, Alaska. (Holiday tip – Santa's zip code is 99705.)

No doubt, the City of North Pole is the perfect place for a holiday visit or stopover at any time of year. Yet this holiday town is a year round home for many people. A huge part of the town's claim to fame is its proximity to Santa Claus but the City of North Pole is also a primary energy center.

The city is home to two oil refineries and the largest electricity-producing generator in the Interior of Alaska. As well, the community is situated between two military bases - Ft. Wainwright and Eielson AFB. More than 30,000 people live in the 'Greater North Pole' area and this small town serves as the commercial hub in this northern region.

North Pole Home Sales

If you want to live near Santa year-round, expect to pay in the range of $221,000 (average listing price). A few area homes are selling in the $150,000 range (or even for lower prices). Other houses are priced closer to $300,000.

Within Santa's zip code (99705), last week's average listing price was $221,952 (a .3% increase). Actually, Santa's zip code was the most popular zip code for the second week before Christmas. That number is not a surprising statistic as Christmas nears and people want to get closer to Santa Claus.

Currently, there are 182 resale and new homes in North Pole listed at a real estate website. Even though the City of North Pole has a festive theme, the town cannot escape all the realities of modern life. Of course, foreclosures do not represent a significant percentage of North Pole home sales. Seven out of the 182 homes for sale, however, involved houses in pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

Yet whatever the roadblock, the City of North Pole, Alaska, seems to be conducive to keeping up one's spirits and, eventually, finding the right direction. After all, Santa has been doing that for centuries – and it is his neighborhood, too.

City of North Pole, Alaska

Would You Like To Live In North Pole, Alaska?

Within the US and Canada, sales of townhouses are 'going to town' (moving ahead in a vigorous manner). The term 'townhouse' has varied meanings in different countries. Historically in the UK and Ireland, 'townhouse' referred to the residence of a member of the aristocracy in a capital or major city. Famous townhouses are 10 Downing Street, residence of Prime Minister David Cameron, or Clarence House, home of the late Queen Elizabeth, the Queen Mother, and now the residence of Charles, Prince of Wales.

What are Townhouses?

Today in North America, this type of housing (either single-family or multiple-family dwellings) has a small "footprint." Usually, a townhouse is within minutes (either walking or with public transportation) of a city's business and industrial areas. Townhouses have been compared to a compromise between a condo and a regular home.

This housing category can include homes in the luxury market as well as more affordable houses. Superb examples of luxurious townhouses can be found in New York, Boston, Chicago, Toronto, Philadelphia, and San Francisco.

Why do People Buy Townhouses?

Part of the current appeal of townhouses is the wide range of prices. There is a townhouse for every budget and all age groups. Townhouses interest everyone from first-time buyers to empty-nesters who are downsizing to a smaller home. A first-time home buyer views a townhouse as an affordable alternative to a detached house. Building fees can cover issues such as snow removal, landscaping, or maintenance of the building's exterior.

Sometimes there is more demand for townhouses than can be supplied by the market. Wendy Jabusch, general manager of Hawthorne Homes, speaks about Canadian real estate and townhouses.

"Recent research shows that available townhome product -- homes started or available for pre-sale -- is only 14 per cent of the new construction market. The remaining 86 per cent of multi-family product is apartments," says Wendy Jabusch of Hawthorne Homes.

What does the Future Hold for Townhouses?

There has been a recent increase in townhouse developments. Construction starts of townhouses counted in at 250 in Calgary, Alberta during October, 2010. According to Canada Mortgage and Housing Corporation, that statistic showed the strongest month in 21 years for townhouse starts. Of course, there were fewer new townhouse constructions in 2009 because builders were working though units already in production.

Home buyers gravitate to townhouses for several reasons. Townhouses offer good value, attractive design, and lifestyle benefits. President and partner Tim Logel of Cardel Lifestyles says that he has found that townhouses have maintained their popularity since Cardel's first development in 2002. Logel is optimistic about townhouse sales in the coming year.

"I expect 2011 to be a strong year for townhome sales as affordability and the job market improves in Calgary," says Tim Logel of Cardel Lifestyles.

City homebuyers go to town

Manhattan Townhouses

New York City townhouses never lose their appeal. It is easier to get financing for a city townhouse than a NYC co-op. Generally, lenders look upon a Manhattan townhouse purchase as a wise investment. If you buy a townhouse as an investment, rental income can take care of the monthly mortgage payment.

Financing A Manhattan Townhouse

Are You Planning To Buy A Townhouse?

Image courtesy of activerain.com

Many people find it difficult to sort through the barrage of real estate statistics. After all, there are real estate numbers released on a quarterly, monthly, bi-weekly, and even weekly basis. Potential home buyers and home sellers must wade though scores of information before making a final decision.

Confusing Stats

It is not surprising that real estate numbers can be a confusing lot. After all, real estate is full of statistics. Remember Mark Twain's classic quote.

"There are three kinds of lies: lies, damned lies, and statistics." ~ Mark Twain.

No doubt, statistics have a questionable reputation. Generally, they are not 'lies' but Mark Twain (and others who have used this quote or a similar version) was probably referring to the persuasive power of numbers. Statistics can be used to bolster weak arguments. On the other hand, they might be dismissed by people on the opposing side of the statistics.

In addition, there is the odd journalist who goes out of their way to make an extraordinary headline out of ordinary statistics. Writers need to grab the readers' attention. Shocking or scary statistics are bound to garner interest and publications are not blind to that fact.

If there were 4,000 home sales in October and 3,800 home purchases in November, readers can expect the headline – Home Sales in Definite Decline. The journalist has published correct information. In this fictional example, home sales declined in November but the article might leave out a few important numbers. The author might not refer to the 5,200 sales in September or the 3,700 home purchases in August.

Statistics show the facts but they can hide the 'ebb and flow' of events. Long-term effects can be influenced by several external factors. A short-term statistic shows a more narrow perspective. They represent the "here and now."

Long-Term Commitment

Home buyers and sellers are facing decisions with long-term effects. They have to take a look at today's statistics but they must also examine tomorrow's outlook and future possibilities. A long term commitment requires exploring a broader range of statistics than this week's numbers. Home buyers and sellers must decipher overall trends and year-to-year comparisons.

They should view and review real estate statistics. Buying a house is a serious decision because you are buying "your home." Even if you are just looking at a home purchase as an investment, it requires commitment. If you hold on to the house for the long term, it can be a worthwhile investment – no matter which shocking statistics appear in the interim.

Through extensive research, individuals can get a better feel for the real estate market. Buyers and sellers need to ignore all the hype and stick with the basics. For example, a home buyer should be able to answer 'yes' to a few basic questions before they decide on home ownership.

Basic Questions for Home Buyers

• Do you have a good credit score? 
• Do you have a steady job or career? 
• Do you have a stable income? 
• Do you plan on being in this location for more than 4 years? 
• If you own a home, have you owned it for longer than 5 years?

WHAT DO THESE TORONTO REAL ESTATE NUMBERS MEAN, ANYWAY?

Are You Ever Confused By Real Estate Statistics?

Image courtesy of liveinalpharetta.cm

Real estate flipping refers to buying low and selling at a higher price. With the typical "fix and flip," an investor will buy a home selling for a low (often, very low) price. The deep discount in the home's purchase price may have come about for varied reasons from a state of disrepair to home owners' divorce to pending foreclosure.

Flipping Homes for Good Reasons

The investor will perform any necessary repairs and put the house back on the market in the hopes of making a profit. There is nothing wrong with this scenario if everything is carried out in a proper manner. In fact, the transaction can have a positive effect on many levels.

The home seller gets rid of the home. Obviously, the seller wanted (or had to sell) the house. The sale can free sellers to relocate or move on with their lives as in the case of divorce. Even with the stressful process of foreclosure, the actual sale puts an end to the stress of 'pending' foreclosure. It allows people to move forward in a new direction.

An investor puts an improved home on the market. That process has general overall benefits to the economy. The renovation companies and building suppliers get business. The neighbourhood gets a nicer home and a bonus - increased property values. Even the system gains with higher property tax assessment value and sales tax on the renovation supplies.

Flipping Homes for Bad Reasons

Yet sometimes flipping homes can either border on fraud or be all-out fraud. Flipping homes can be part of a criminal scheme. The investor in illegal property flipping is not concerned with home buyers, the neighborhood, or even making a reasonable profit through honest efforts.

Illegal flipping is a 'fraud-for-profit' scheme. The investor acquires property and resells it for a considerable profit at an artificially inflated value. The property is put back on the market in record time.

If the home required repairs, they either will not be completed or will just undergo a superficial fix. The new buyer may not be aware of the situation. The buyer borrows to finance the purchase and the lender gets drawn into the fiasco. This type of fraud is costly for lenders because it involves a substantial loss.

Of course, an illegal property 'flipper' needs help to carry out the scheme. Illegal property flipping usually requires collusion between an investor, real estate appraiser, mortgage originator, and closing agent. The appraiser plays a big part in the scam. A false and artificially inflated appraisal is necessary for the successful completion of this criminal scheme.

When Flipping Homes Turns Ugly

Illegal property flipping can end up in an ugly mess. One example would be the recent complaint filed in Manhattan federal court on December 14 against sellers, appraisers, and even lenders. All parties allegedly conspired to commit mortgage fraud.

According to the current civil lawsuit, sellers allegedly purchased 17 homes and 'flipped' them without proper improvement to inexperienced, low-income buyers who could not afford the properties. The appraisers allegedly overstated the value of these homes in their appraisal reports. As well, a mortgage lender allegedly underwrote mortgages for the buyers with the knowledge of the false appraisals and inability of the buyers to afford the mortgage payments.

Read more about what happens when flipping homes turns ugly....

Have You Been The Victim Of Illegal Property Flipping?

Image courtesy of houseflippingonline.com

Unless you are in a hot climate, November and December can be chilly months. This year, parts of the US and the UK are living through an early winter. Home sellers in these countries have also been experiencing a chilly period.

Los Angeles

Although Los Angeles might have warm temperatures, there has been a cooling down period in the housing market. During November 2010, the Los Angeles County housing market saw quite a slowdown. Home sales fell 21% compared to purchases in 2009. Condos sales had even a worse showing. Last year, 4,315 homes had sold in this region throughout November. Only 3,423 homes were purchased during the same period in the current year.

Sales were down 9% from October. Often home sales will decline somewhat in late autumn as the market heads towards winter. Yet the median price in Los Angeles County did not show much movement. In fact, median price was at almost the same place as in summer.

In a November 23 report, the California Association of Realtors suggested that the average home seller is not prepared for these chilly times. The housing market is in the midst of change. People must be willing to participate in a different game on an unfamiliar playing field. Leslie Appleton-Young, association chief economist, explains the "new reality."

"We're really seeing two different housing markets: one at the lower end driven by first-time buyers and investors, which is keeping prices stable, and one with nostalgic sellers who set unrealistic asking prices," says Leslie Appleton-Young, chief economist of the California Association of Realtors.

As well, Michael Nourmand, president of residential brokerage Nourmand & Associates, has noticed that buyers and sellers are finding it hard to adjust to a new market. Home sellers tend to think about the previous popularity of an area or earlier neighborhood prices. Yet sellers must think in the "here and now." In uncertain times, affordable options (such as fixer-uppers) are a big draw.

November Ushers In a Big Chill for Home Sellers

UK

In the UK, home sellers cut asking prices by 3% in December. These figures represent the worst December performance for home sale prices in three years. The statistics show the steepest decline since the 3.2% drop in 2007. Home purchase prices have now fallen during five of the past six months in all regions of England and Wales. The West Midlands saw the worst fall at 5% but Wales escaped with a mere 1.3% decline.

Despite a demand for homes and interest in quality homes and popular neighborhoods, dreams do not always translate into actual sales. Negative factors can come in to play to outweigh positive circumstances. Miles Shipside, director of Rightmove, explains part of the problem in the current UK housing market.

"The fact that many would-be buyers do not have the ability to proceed, and some homeowners find themselves in a position where they are forced to sell, drives prices down," states Miles Shipside, director of Rightmove.

Rightmove believes national home sales prices will at least remain flat in 2011. In fact, they predict the worst scenario could be a 5% decline because many homeowners are facing repossessions.

Home Sellers Forced To Slash Asking Prices

Are Home Sale Prices Experiencing A Chill In Your Neighborhood?

Image courtesy of sandiegometro.com

With its home values increasing by almost $11 billion in 2010, the Boston housing market is going in the opposite direction of the national trend. According to Zillow.com, Boston real estate is a better and brighter market. Since the city is now in a more favorable position than the rest of the country, its market will enter 2011 in great shape.

Home Values

As the housing market stabilizes, Boston should continue as a bright spot. Keep in mind that the city's current home values are an impressive lot. After all, U.S. home values are expected to lose $1.7 trillion this year. That decrease is 63% more than the $1 trillion decline in 2009. The latest figures confirm that total value lost since the 2006 market peak has been $9 trillion.

Home values had been appreciating from 2003 to 2005 (and in certain instances, during 2006). When subprime mortgages became popular, home owners believed that their houses would continue to increase in value. The rate was unsustainable, however, even with the help of government interventions such as the expired Federal Homebuyers' Tax Credit.

The market referred to as the 'Boston Metropolitan Statistical Area' was just one of two shining lights in the recent statistics. San Diego also showed an increase of $10.2 billion in home values.

Surprising Statistics

Now the Boston statistics were a bit of a surprise – at least to Robert Murphy, an economist at Boston College. He referenced the S&P/Case-Shiller Home Price Index (a measure for the U.S. residential housing market). Murphy believed that they reported home values in Greater Boston had not fallen as far as in other U.S. regions.

Yet despite his surprise at the latest statistics, this economist had to admit that Boston is enjoying a positive economy. Murphy pointed to two main industries (health care and education) stabilizing the Boston housing market as well as employment sectors. He reminds everyone, however, that Boston home values are still down $105 billion from their peak in 2005.

"The state’s unemployment rate is 8 percent, vs. 10 percent nationwide, so we’ve done better in that sense too,” says Robert Murphy, Boston economist, explaining the city's encouraging economy.

Foreclosure Effect

Is it possible that foreclosures are affecting recent statistics about Boston home values? Probably not! Yet Boston has seen its share of foreclosures.

There were 11,334 foreclosures from January-October in Massachusetts – an increase of 7,710 from 2009. Median prices for single-family homes, however, have increased since July. It will take six months (or even longer) though for downward pressure on median home prices to be felt in the market.

Hub home values up by $11B

Falling Home Values

New York City had the biggest decline at $103 billion and Chicago experienced $48 billion in losses. The value of homes in the Chicago metropolitan area is expected to fall 7.1% (to $625.8 billion) this year compared to 2009. The predicted loss of $48 billion is a better showing than the 2009 $66.7 billion loss. A local real-estate agent believes that Chicago home values will decline another 2%-3% during 2011. That fall would be a result of increased foreclosures and short sales.

Chicago’s home values dropping — but 2010 better than 2009

What Is The State Of Home Values In Your Area?

Buying or renting? The age-old question! Making that important decision is challenging in the best of times. Yet when the country is recovering from an economic downturn, people can lack confidence and be more uncertain about the right choice.

Does Buying A Home Make Financial Sense?

According to a recent National Association of Realtors survey, 85% of home buyers between June 2009 and July 2010 believed that they were making a sound financial decision. Almost 50% of the buyers and sellers in the survey considered their home to be a better investment than stocks. Nearly one third of the group believed their home to be an investment ranking at least on par with stocks. The findings were similar among all categories of buyers (first-time buyers or existing home owners, couples or individuals, male or female).

Will Home Ownership Be A 'Get Rich Quick' Investment?

In earlier decades, many buyers viewed home ownership in that light. That perception is changing in the current market. The median expected length that today's home owners will stay in a residence is 10 years. Generally, repeat buyers plan to remain in the same residence for 15 years. Of course, these long-time home owners can still turn a profit further down the road.

Should I Rent Or Should I Buy A Home?

There is no simple answer to this question. Reaching a final decision means that individuals have to examine their own situation from every angle. They must consider their goals, circumstances, and even one's personality.

Certain people prefer to be renters. They do not want to take on the responsibility of home ownership. If there is a problem as a renter, they can call the landlord. Renters without signed leases are able to move at a moment's notice. Some people enjoy that sense of freedom.

Yet other renters (especially with families) long for home ownership. Renters must have certain specifics in place if they are planning to buy a home. They should have a down payment and closing costs.

Potential home buyers will need to qualify for a mortgage. As well, they must be able to afford the cost of buying a home. Home ownership costs include more than the purchase price. Homeowners must be able to pay the monthly mortgage costs, property taxes and insurance, as well as maintenance costs.

Making The Final Decision

People have to examine their personal circumstances before they decide to rent a residence or buy a home. They must consider the pros and cons of each option. There is help out there to assist individuals with this process. It is possible to find classes in different locations that are focused on exploring the "buy or not to buy decision."

Various real estate professionals have written e-courses or organized classes about renting versus home buying. In addition, there are similar programs created and run by groups or businesses with no vested interest in trying to sell homes. People can get expert help to guide them in making the right decision.

Should you buy or keep renting?

Image courtesy of lendernewscast.com

U.S. homeowners have only until December 31, 2010 to take advantage of the current Residential Energy Property Credit. This 'green' program is available to home owners who make energy-efficient improvements to their houses. New homes or rentals are not eligible for this credit and the home must be the person's principal residence.

Federal Tax Credit

This property credit is about to expire and qualifying items must be bought and installed before the end of 2010. People can make purchases such as heating and cooling systems, insulation, roofing, windows and doors, water heaters, and biomass stoves. The credit is a dollar-to-dollar reduction on the amount of tax owed and home owners can receive up to 30% of the cost – up to $1500 per home. Two or more unmarried people living in the same home with joint ownership are each eligible for the tax credit on money spent for improvements. Yet the total credit cannot exceed $1500 for a single home.

The credit includes installation costs in certain categories but not for all purchases. For example, installation costs are covered for heating, ventilating, and air conditioning (HVAC). The tax credit, however, does not include installation costs for insulation. As well, not all ENERGY STAR qualified products are included in this initiative. Homeowners are advised to check out the rules of eligibility for this credit.

Associated Components

People are wondering if the tax credit applies to components associated with a product. If a homeowner purchases a biomass stove, will the cost of a hearth, stovepipe, and chimney be eligible for the credit? The IRS administers this program and they have not issued any written guidelines about eligible components.

Homeowners can contact the IRS for the official word. Yet it has been widely suggested informally that components are covered if they are critical pieces of the product's energy efficiency. If the component can be used with a non-qualified product, it does not meet eligibility guidelines for this credit.

How To Apply

For products installed in 2010, homeowners must file the IRS Form 5695. They must submit the form with their 2010 taxes by April 15, 2011. Homeowners must save receipts and the Manufacturer's Certification Statement for their records. A Manufacturer’s Certification Statement is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. Manufacturers should provide these certifications on their website.

Income Limit

There is no income limit with this program but it is a 'non-refundable' credit. Homeowners' credits cannot exceed their tax liability (the amount they pay in taxes).

Future Energy

If a homeowner cannot make the December 31 deadline, there are other opportunities to take advantage of energy-efficiency programs. Indeed, new homes and second homes (as well as existing homes) are considered for a tax credit in two additional incentives. The programs vary and cover from 30% of the cost with no upper limit to 30% of the cost and up to $500 per .5 kW of power capacity. These credits do not expire until December 31, 2016. Learn more about Federal Tax Credits for Consumer Energy Efficiency.

Last chance for homeowners to get green tax credit

Have You Applied For The Residential Energy Property Credit?

Image courtesy of billshrink.com

Holiday tidings – home mortgage rates are holding their own. Last week, there was a spike but - according to Freddie Mac – hardly any change this week on fixed-rate mortgages. Based on the weekly survey of mortgage rates, we are in a period of stabilization – a positive sign for the economy.

Home mortgage interest rates had been declining in past months because of economic uncertainty. Yet earlier this month, there was a change. Home mortgage interest rates have increased recently and last week's mortgage rates took a jump. Stabilization, however, is the reality for the week ending November 24.

Home Mortgage Rates

Rates on 30-year fixed-rate mortgages averaged 4.4% on November 24. That rate is just a slight increase over last week's rate; 4.39% was the rate for the previous week. Freddie Mac mortgage rates have increased for the past four consecutive weeks. The rate averaged 4.78% in 2009.

Fifteen-year fixed-rate mortgages averaged 3.77% this week - compared to 3.76% in the previous week and 4.20% last year. Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 3.45% this week - up from 3.4% in the preceding week. The ARM averaged 4.18% in 2009.

Obtaining Rates

To obtain the rates, the 30-year fixed-rate mortgage required payment of an average 0.8 point. The 15-year fixed-rate mortgage required an average 0.7 point and both ARMs required an average 0.6 point. A point is 1% of the mortgage amount charged by the bank as a prepaid mortgage interest.

Freddie Mac

Frank Nothaft, vice president and chief economist at Freddie Mac, released promising news on varied fronts on Wednesday. He noted an improvement in home owner balance sheets as well as a decrease in mortgage delinquency rates in the third quarter of 2010. Actually, there has been an overall decrease in delinquency rates. They have fallen to 9.13% - the lowest rate since the first quarter of 2009. Freddie Mac's chief economist also mentioned other encouraging signs for the economy."Growth in gross domestic product in the third quarter was revised up from the initial estimate to an annualized rate of 2.5%, as stronger consumer spending and exports supported the revision," says Frank Nothaft, vice president and chief economist at Freddie Mac.

Home Mortgage Interest Rates Stabilize This Week

Wells Fargo

Wells Fargo also showed stabilization after a volatile couple of weeks. Mortgage rates have been moving around but the movement has been limited to only a certain level. Check out more specifics about Wells Fargo and mortgage rates. It will be easier to make more long term projections if mortgage rates remain stable so that we can determine effectively the overall scope. Industry experts believe that home values will not stabilize completely until the end of 2011 or middle of 2012.

Housing Market

Looking ahead to 2011, some industry leaders say that potential home buyers and homeowners wanting to refinance should experience favorable conditions in the coming months. Analysis seems to suggest that rates will stay below 5% - at least until mid-2011. Home buyers are expected to be lured back into the housing market with low mortgage rates, affordable house prices, and improving employment figures.

Housing Forecast for 2011

What Is Your Prediction For The Housing Market In 2011?

Image courtesy of poloclubhomesforsale.blogspot.com