Current Mortgage Rates + $8,000 Tax Credit = Happy Home Buyer

Low Mortgage Rates + Tax Credit

current mortgage rates, mortgage rates, low mortgage rates

And………….More good news for the Housing, Real Estate and Mortgage Industries today. I just finished reading an article which stated: “Mortgage applications rose last week largely due to refinance transactions since current mortgage rates slid to a 5 week low. Current mortgage rates for last week were the lowest since the week ended July 10th, 2009”

The article also stated…..”Purchase mortgage applications also rose for the third week in a row but the recent spike in mortgages applications was due mainly to refinance transactions since lower mortgage rates affect refinance transactions more than they affect purchase money transactions. Purchase money transactions are affected by low or affordable sales prices.”

I believe the sand in the hourglass slowly expiring for the government’s 8 thousand dollar tax credit for first time home buyers has a direct affect on home purchases and therefore mortgage applications increasing.

The report did not differentiate the difference between the amount of refinance applications and purchase money applications although the total seasonally adjusted mortgage application index rose by 5.6 percent, which includes both refinance and purchase application data. The purchase application seasonally adjusted index rose by 3.9%. To be honest I do not know how the percentage of either index is calculated seasonally adjusted or not. It appears to me that the purchase money mortgage applications out numbered the refinance transactions. I guess it can be debated for a longer period of time than what I want to allow for this discussion, whether purchase transactions fueled the increase or whether refinance transactions fueled the increase. I am going to go way out on a limb here and state without any hesitation…the total number of mortgage applications would NOT have increased for the week. without both types of transactions

What does all of this mean to you?

It means it is a great time to refinance your current mortgage or purchase the home of your dreams regardless of whether you are a 1st time home owner or not. Current Mortgage rates are still at historically low levels. Home prices are at or near their lowest levels in two, three or four years in most areas of the country.

We have experienced mortgage professionals on hand here at Total Mortgage to advise you on not only the best programs available to your individual situations but also inform you of what tools may be at your disposal to assist you in obtaining your desired goals regardless of if you are in the market to refinance or purchase the home of your dreams..

Current mortgage rates today, while off of their lows for today’s session are still lower for the day which if this holds true through the close of the market today, will make it 7 out of the last days in which they have decreased from the day before.

Now for more good news…..

Please allow me to clarify the statement I made at the very beginning of this blog. I will confess the statement while it may not be 100% accurate should be something to be taken very seriously. I will admit it depends on how you may view the accuracy of the statement, just as all of the talking heads view and decipher all of the statistics which are constantly being released daily pertaining to the housing market and financial markets.

Now for clarification….if you are a NON first time home buyer who is purchasing a home with another individual who is a FIRST time home buyer and you are not married to each other, although you are not a first time home buyer, the co borrower who is a first time home buyer is still eligible to claim the eight thousand dollar tax credit. Therefore your household would still be eligible for the 8k tax credit.

Or, if you may want to look at it in another way, NON first time home buyer may be eligible for a 4k rebate. As far as I know there is no law which states what the non first time home buyer does or doesn’t do with the eight thousand dollar tax credit once they receive it from the federal government. If they want to split it with the non first time home buyer co borrower, it is their prerogative.

FYI….The 1st time home buyer 8k tax credit expires in @ 3 months, 10 days and eight hours.