Contracts for properties in Lawrence, Kansas showed significant signs of improvement in January 2010 with a noticeable jump up from January 2009. First time home buyers rushing to close on a home before the Federal Home Buyers Tax Credit is credited for the noticeable increase in contracts for the months of August, September and October of last year (2009). The home buyer's credit was extended in November 2009 and now expires in April 2010 which may trigger a similar boost in sales contracts over the next 3 months as buyers return to the market to take advantage of the credit before it expires. A noticeable drop in contracts for the months of November 2009 and December 2009 appears to be caused by the anticipated expiration of the original buyers credit at the end of October 2009. It may me wise for sellers to anticipate a similar lull in buyer traffic when the revised tax credit for buyers expires in April 2010, as buyers willing (or able) to write contracts may dramatically decrease as witnessed at the end of 2009. I encourage both home sellers and qualified home buyers to take advantage of the boost the tax credit is giving to the real estate market. Spring 2010 may turn out to be one of the most exceptional sales seasons Lawrence will have for some time. Don't let this opportunity pass you by. More information on the home buyers tax credit can be found on my home buyers tax credit FAQ page or by calling me at (785)550-2585.
Local mortgage lender Bob Buchanan at Wells Fargo anticipates mortgage interest rate increases of 1% or more as soon as March 2010. Buyers should note that small increases in interest rates can dramatically reduce the afforadibility of a home, but interest rates in the anticipated %6 to %6.5 range are still considered historical low. To find out how changes in interest rates affect your monthly payments use a mortgage calculator.
Congress is also considering laws to increase both the down-payment requirements and minimum credit scores needed to qualify for a home loan. If enacted, these rules will prevent or delay many first time home buyers from achieveing their dreams of home ownership. It is unknown what effect, if any, these changes could have on home prices here in Lawrence, KS. I'm happy to provide buyers looking for a loan with referrals to great local lenders who still offer low 3.5% down FHA loans with great rates, just give me a call at (785)550-2585.
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