Phenix City, AL

Here come the 2010 forecasts...

Mortgages rates, which hit an all-time low about a month ago, are slated to rise to six percent by the end of 2010, according to the deputy chief economist at mortgage financier Freddie Mac.

Amy Crew Cutts told the Washington Post mortgage rates could climb about a percentage point over the next year as the Fed winds down its mortgage securities purchase program.

She said private buyers of mortgage securities will demand a higher rate of return on the investments than that of the Federal Reserve, prompting banks and lenders to raise interest rates for consumer loans.

Last week, the always-hot 30-year fixed averaged 5.05 percent, up slightly from 4.94 percent a week earlier; but rates have increased for three consecutive weeks since hitting rock bottom.

And rates hadn't been above five percent since the last week of October, so there's fear the best may have come and gone.

It's been largely expected that mortgage rates will rise in 2010, given the current unprecedented levels and the amount of government involvement necessary to artificially deflate them.

Cutts added that anything below five percent on a mortgage is a "gift at this point," echoing similar sentiment from interim Freddie Mac CEO John A. Koskinen back in late March, who said mortgage rates were "about as attractive as they're ever going to be."

In other words, buy a house TODAY, before it's too late. But seriously, rates will probably move higher in 2010.

This is the third consecutive day of rain here in the Phenix City, Alabama area. I just gave OLIVER a fresh bowl of water. Water is a basic need, fundamental to our existence. It's something to give thanks for and something to conserve. It's never too late to begin or improve water conservation habits. The Southeast has been dealing with some serious draught issues in recent years. Being thankful for the abundance of water these past few days makes me more aware of how we use and over-use this resource.

The state of Alabama has more than 77,000 miles of rivers and streams, normally more than adequate to meet the water needs of this state. Recent droughts, however, remind us of how important it is to conserve and value this resource.

This map from http://water.usgs.gov/waterwatch indicates the current water level and streamflow activity, collected from all over the state, which has designated locations in each county that are monitored with surface water gages. In Russell County, it is set at the UCHEE CREEK NEAR FORT MITCHELL, AL. You can see, even after days of rain, many areas are still considered below average or being near the drought status.

Here are 10 WAYS YOU CAN HELP AT HOME TO CONSERVE WATER AND SAVE MONEY:

1. Turn off the tap while brushing your teeth
2. Turn off the tap while you shave
3. Shorten your shower by 2 minutes (10 gallons saved!)
4. Place a water-filled bottle or bag in your toilet tank (6 flushes = 10 gallons)
5. Wash only full loads of clothes (1 full load = 10 gallons)
6. Sweep instead of using the hose to wash down the driveway
7. If you wash your car, park it on the grass and use a hose with an automatic shut-off nozzle
8. Use mulch around trees and shrubs and in garden beds to retain moisture in the soil
9. Use the short cycle on your dishwasher
10. Water lawns early in the morning when terperatures and wind speeds are lowest

Sources: Water Line, Vol. 10, Sept. 1990, Clemson University Cooperative Extension System and www.adeca.alabama.gov

If you are an Alabama resident and would like to take advantage of a FREE Water Conservation Kit, log on to www.cleanwaterpartnership.org to order or send your written request with your name and address to: AUEI, 1090 S. Donahue Dr, Auburn University, AL 36849.

OLIVER & I are doing business as a Real Estate TEAM. Life is Good. And we are good at finding places, like homes.

If I can provide more information about Columbus, GA, Phenix City, AL, Fort Benning and surrounding areas, or the real estate market in general, or otherwise assist you in buying or selling a home, please contact me by phone or text at (706) 315-1024 or EMAIL ME.

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DISCLAIMER: The information contained in my posts deemed reliable but is not guaranteed, and the opinions expressed in these articles are mine. (Fred D Peak)