Info That Hits Us Where We Live

The National Association of Realtors (NAR) Pending Home Sales Index, that tracks housing affordability, rose to a record level in January. This was a result of the combination of mortgage rates, family income and home prices in January were “the most favorable since tracking began in 1970,” according to the group.

NAR also forecasted that existing home sales would rise 0.3% this year, then 5.8% in 2010. The median price for existing home sales would rise 3.9% in 2010. But the median price for new homes would drop only 3% this year, then rise 4.2% in 2010. All these facts, figures and forecasts point to one thing. If people find good value and a good mortgage rate on a home this is the year to buy.

The US Treasury released the guidelines for its Making Home Affordable programs. The Home Affordable Refinance program will help 4 to 5 million homeowners get into a fixed rate mortgage at today’s lower rates, even though their homes have lost value. The Home Affordable Modification program will help 3 to 4 million at-risk homeowners avoid foreclosure by reducing their monthly mortgage payments. Both programs will help keep people in their homes and stabilize prices. Here is a link with more information. www.financialstability.gov

Last week it was another week when all the major stock market indexes took a bumpy trip down however, the bad week in stocks gave us a good week in bonds. The mortgage rate situation continues to be very very appealing.