What Does the Homeowner Affordability and Stability Plan Mean to You?

 The key elements of this plan are:

1.   Incentives would be given to mortgage lenders who will modify loans to reduce mortgage payments  and provide help to up to 4 million homeowners having difficulty making payments.

2.    Fannie Mae and Freddie Mac would be allowed to refinance mortgages they own or guarantee. This could be done even if the homeowner owes more on the home than it is worth.  

3.     Mortgage rates would be kept low for all buyers.   This would be done by providing more support to Fannie and Freddie Mac.

This plan will be funded with money that comes directly from the $700 billion financial industry bailout. This plan was designed to help homeowners facing foreclosures, by giving them the opportunity to restructure or refinance their mortgages.  

It might seem that this plan is only going to help people who are defaulting on their mortgages, but defaults and foreclosures continue to bring down the market and this results in lower home prices for all of us.   Almost everyday, I hear, “When will home prices go up?”   In my opinion they will go up as soon as we can get all of these foreclosed homes off the market.  


Market Statistics!

Good news!

The   National Association of Realtors is reporting that existing home sales increased in the month of December.   I do feel this is in direct response to homes becoming more and more affordable.   On the other end, the construction of new homes declined in December.  

We are seeing historically low interest rates combined with the affordability of many homes to choose from.   It really is an incredible to to buy a home!

Selling During the Holidays?

During the holiday season, I frequently hear seller’s saying the holiday season is the worst time for selling.   While the pool of buyers might be slim, there are still buyers out there. Consider these positives  of keeping your home listed during the holidays:

  • Your home  isn’t going to sell if it’s not even listed. By leaving it on the market, you are likely to attract the motivated buyers who tend to house hunt during the holidays.
  • If others are taking their home off the market…which causes a reduction in inventor, and  you leave yours on, there is a greater opportunity of a buyer viewing and purchasing your home.
  • When tastefully decorated for the holidays, a home is extra inviting. During this time of year, buyers will be able to  envision their own family celebrating in the cozy environs of your home.


Rates for Mortgages have dropped substantially in direct response to our governments actions in the past week!  

30 year mortgages have taken a significant cut after the FED and the Treasury Dept. moved to free up credit for buyers.   As a direct result of these actions mortgage applications soared nationally!  

It is a GREAT time to BUY!

One of my most frequent question I recieve from my clients is:

Is it really a good time to buy?

In my opinion it is a great time to buy, and here are some reasons why.

For many reasons, now is an excellent time to purchase a home.  There are many factors that work in favor of homebuyers, especially those looking to make their first home purchase.

  • Housing affordability continues to improve consistently. In fact, affordability is as high as it has been since 2003.

  • While the number of homes on the market has started to decrease,  home buyers still have a wide variety of homes to choose from. This makes it more  likely buyers will find their dream home.

  • Despite the news headlines, mortgage money is still available.   The government has many initiatives underway to ensure that mortgages flow to qualified customers. At Weichert, nine out of 10 people that come to us are approved for a mortgage.

  • First-time buyers can now take advantage of a limited-time opportunity to receive a tax credit of up to $7,500 when they close on a home purchase before June 30, 2009.

Freddie and Fannie Reevaluating Foreclosures

Freddie Mac and Fannie may will be halting foreclosures starting in late November.   These financial institutions will evaluate borrowers who might meet certain criteria included in a newly released loan modification program.    This brief reprieve, will end in early January.  

This will not effect everyone facing  foreclosure.   The media is reporting that just over 15,000 homeowners will receive the benefits of this plan.

Are Foreclosures Really a Good Deal

As we continue to go full speed ahead into this housing crisis.   I  still receive many questions  concerning the “deal”  foreclosed homes may or may not present to buyers.  

Just recently we  have seen a change in the buyers we work  with.   Last year at this time  all  I would hear was, show me a foreclosure…But now,  the majority of  our buyers  actually want to see pre-owned or new construction.   I have also noticed a trend with the  prices  of  pre-owned homes and new  construction.   They are becoming very  competitive with foreclosure prices.  

Now that the election is over, we will see an upswing in real estate.   Due to the fact that we  live in such a transient community, people will be moving in and moving out.   This will cause prices to go up.   Now, prices are not going to reach the peak of 5 years ago, but  there will be an increase in  demmand, and that is good news for all of us!    

Lenders Have Started to Tighten Up!

This week we have seen reports in the media concerning the way banks are changing the way they do business.   This is in direct response to the housing and economic crisis our nation is facing.   Financial institutions are tightening up on all types of lending including home mortgages.   Banks are expecting higher credit scores.

In a survery released by the Federal Reserve,   about 70% of banks taking part in the survey  said they had tightened lending standards further for prime mortgages.

It is good to see this information being reported in the media.   I have seen a tremendous amount of change in the lending industry over the past 3 months.    

Interest Rates

Yesterday the Fed. cut the rate yet again….

The most frequently asked question I hear is how will it effect mortgage rates?  

The majority of financial advisers and loan officers I have spoken to have reaffirmed my opinion.   Fixed-rate mortgages, for the most part, do not change as a result to a cut in the federal funds rate.   We are hearing that this cut will have no impact on long-term mortgage rates.   There is some good news for adjustable rate mortgages.   These type of mortgages seem to be more responsive to the Federal Reserve decisions on rates.

Open House on October 19, 2008 at 14500 Swordale Ln.

On October 19, 2008 at 13:00 PM, you are invited to an Open House at 14500 Swordale Ln. in Bristow. If you are looking for a Single-family property in this area, don™t miss this rare opportunity to visit this magnificent property. For a preview of this Single-family property, check out my site at http://www.candiceskoby.com. Please do not hesitate to Contact Me if you have any questions or wish to schedule a private showing.