Recent news is providing strong indicators that the housing market has indeed stabilized and is on its way to recovery. 

• Home prices rose for the seventh straight month in December of 2009 according to the latest Case-Shiller Index released earlier today.  Housing prices are one of the strongest factors in determining the strength of a recovery and right now we are seeing increasing price stability in what has been a very volatile market.
• Tomorrow the government will report the new-home sales figures for January – economists are expecting a 4% increase over December.
• Home-improvement retailer Lowe’s reported a better-than-expected profit for the fourth quarter and they expect 4% to 6% growth this year. 
• Other companies with ties to the housing market such as top homebuilders including Lennar, D.R. Horton, & KB Home, affirmed the signs of a turnaround by reporting surprise fourth-quarter profits.
• According to the National Association for Business Economics, “the housing market rebound is considered ongoing and sustainable,” and they estimate that home prices will rise 1.5% this year and another 2.6% in 2011.

All these signs indicate that 2010 will be a better year for the housing market, which looks to be slowly but surely recovering.  Lowe’s CEO Robert Aniblock said that “the worst of the economic cycle is likely behind us.” 

While this is great news for the economy overall, this recent trend may ultimately result in an increase in home prices along with a decline in available inventory over time.  And if you haven’t read the 2010 Mortgage Rate Outlook by HSH Associates then you should. The HSH forecast lays out a case for higher mortgage rates by year end, ending a trend of historically low rates.

So if you’re in the market for a new home loan or are looking to refinance your house, we urge you to act now because this window of opportunity of low home prices and record low interest rates won’t last forever!

Take Advantage of the Benefits of Refinancing While Rates are Still Low

Refinancing your home with a lower interest rate could save you thousands over the course of your loan.  It can also make your monthly payments more manageable by extending your remaining loan term.  With interest rates likely to rise in the future, another benefit of refinancing would be to reduce the risk of an adjustable rate mortgage by stabilizing the monthly payments using a fixed-rate mortgage.

First-Time Home Buyer $8,000 Tax Credit Expiring in April 2010

And if you are a first-time home buyer (have not owned a home for 3 years) you still have time to take advantage of an $8,000 tax credit to buy your home.  The tax credit, initially set to expire at the end of November 2009, has been extended to April 30, 2010.  
  
Highlights of First Time Home Buyer Tax Credit:

• The tax credit doesn't have to be repaid
• The credit is available for homes purchased between November 7, 2009 and April 30, 2010
• Income limits have been increased:  single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit (up from $75,000 / $150,000); smaller credits may be available at reduced rates for homebuyers earning above this amount.

Additionally, a $6,500 credit has been added for existing homeowners who buy a new residence if they have lived in their current one for at least five consecutive years in the last eight years.

So if you are in the market to refinance or get a new home or equity loan, now may be the time since these record low rates won’t last forever.  Act now to find a lender and get free expert advice in your area!