Saturday, January 2, 2010

What to Expect in 2010

We are starting the New Year with mixed feelings and uncertainty. As we saw last year, the housing sector is still struggling to get out of depression. We all know that it is a vital component of the economy. We understand that if mortgage interest rates get out of control and start escalating, it will cause the housing sector to collapse. While the most recent data shows positive housing trends, in the affluent parts of Northern Virginia close to a metro station in particular, analysts attribute the positive movements to artificially low mortgage interest rates tied to the Fed buying of mortgage bonds.
What to expect in the New Year? Most likely, already before the end of the year the rates will be 1+ point higher. May this affect your buying power? Absolutely. Besides it will be (and already is) very difficult to qualify for a loan.
Now is a great time to take advantage of rates at these historically favorable levels. Before you start looking for a property, make sure to talk to a reputable lender, get a preapproval letter and then start working on the paperwork for the lender to be able to approve you subject to a contract and appraisal. Need help? Call or email me.

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