There are a lot of changes coming down the pike in short order that will surely affect the housing market & the ability of some buyers to purchase a home. The one-two-three punch includes the expiration of the Home Buyer Tax Credit on April 30th & the scheduled end on March 15th of the Federal Reserve's program of purchasing of Mortgage Backed Securities. This program was begun in 2009 to help keep a lid on rising mortgage rates and make more money available for loans.
The upcoming game changers along with stricter guidelines for FHA Mortages taking effect on April 15th are expected to raise interest rates & de-incentivize and/or eliminate some of the home buyer pool.
These three strikes looming against the housing market may mean a volatile spring ahead. The spring bounce we look forward to just might become instead a 9th inning cliffhanger. the Washington Post reported on Friday there has been some buzz re: A Possible Extension of The Feds Mortage Backed Securities Buying Program. (I breathed alittle easier after that report)
I think they would be wise at least for the short term to maintain the status-quo. Since the termination of this program is expected to have a major impact on mortgage rates/interest rates to the upside, & since whatever housing recovery we see is currently being sustained by low price tags, mega inventory, tax credit incentives & historically low rates, the impact of losing two of these market "prop ups" & safety nets (the buyer tax credit & Feds Mortgage buying) IMHO will lead to a dramatic downside for Housing Market & the economy overall.
Let's hope(& pray)as reported in the Washington Post, the FED will not only seriously consider but implement a last minute pinch-hit to save the game! Of course the Feds weighty decision hinges on a lot of economic variables, ( & surely some political consideration and/or pressure), so toss a coin & take a guess at what their decision will be. You'll have 50% chance of getting it right!
"So far, the Fed's net buying of mortgage-backed securities totals nearly $850 billion, or about 80% of securities issued this year by entities like Fannie Mae and Freddie Mac.
Since these agencies bought nearly all new mortgages made this year, the central bank has effectively acquired most of the home loans made in the U.S. That has helped soften the decline in house prices and sparked a refinancing boom that has boosted spending power for many households." Read Full Article
Check out his 5 minute video! The Crystal Ball : Housing Market, Mortgage Rates, FHA Guidelines, And Investor Overlays
NOTE: There is still time to find your Wilmington NC area home & take advantage of the Home Buyer tax credit. As long as the Contract is signed before April 30th, we're good to go!
Ginger
Wilmington NC Real Estate & Relocation Specialists: serving the beautiful Coastal North Carolina areas of Wilmington, Wrightsville Beach, Hampstead, Carolina Beach, Kure Beach, Topsail Island, Surf City & Leland. "Wilmington NC Living truly has something for everyone!"
"Coast Home to North Carolina!"
*The text & photos are the sole property of the author & may not be used without express permission
Wilmington NC Area First Time Buyers~ Breaking NEWS!
The $8000 Tax Credit for First Time * Home Buyers just got better! !
The U.S. Housing and Urban Development today announced that the Federal Housing Administration (FHA) will now allow home buyers to apply the $8,000 first-time * home buyer tax credit toward the purchase price/closing costs of a FHA-insured home. Housing Secretary Donovan was very hopeful that this new rule action will help to stabilize housing markets by across the country by an increase if future home sales.
New Tax Credit Rules Can Help More Buyers
Originally the American Recovery and Reinvestment Act of 2009 offered First Time Home Buyers a tax credit/refund of up to $8,000. The "old" guidelines allowed this credit to be received as a refund only after the Home Buyers filed tax returns with the IRS. The FHA's new rules allowing state Housing Finance Agencies and certain non-profits to "monetize" up to $8000 of the tax credit (which depends on the amount of the mortgage) so that borrowers can apply the funds toward their down payments.
Lower Monthly Payments Possible... Sound good?
First Time Home buyers * using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate.
Down Payment Requirements & Guidelines
Remember, Borrowers applying for an FHA-insured mortgage are still required to make a minimum 3.5 percent down payment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today's announcement, lenders can now use the tax credit immediately as additional down payment, or for other closing costs, which can in effect create a lower interest rate & monthly payment. In addition to the borrower's own cash investment, FHA allows parents, employers and other governmental entities to contribute towards the down payment.
Projected Home Sales Expected to Climb with New Tax Credit
According to estimates by the National Association of Home Builders, the home buyer tax credit will stimulate 160,000 home sales, 101,000 of which will be first-time buyers who will receive the credit. Another 59,000 existing sellers will be able to buy another home because a first-time buyer purchased their home.
Buyer Beware! Scammers are on the Prowl!
Potential buyers should beware that their are all kinds of mortgage scammers out there, ready to pounce on the unsuspecting. It is crucial to consult with seasoned, respected financial services provider. The local Wilmington NC Area mortgage professionals that we recommend have the outstanding reputation, expertise, integrity & diligence, that every buyer deserves, and they are also FHA approved lenders.
Wilmington NC Homes for Sale
Are you ready to go shopping for your Wilmington NC area home with some Governments money? There are some terrific buys out there! Sellers are eager, prices are down, interests rates, according to the experts will not be going lower, and free money will only be available for a few more months!
Want to get moving??? Call us for more details & to see if you would like to team with us to help you achieve your goals! We'd love to show you what your money can buy. You just might be very surprised!
*Remember: definition of first time home buyer is anyone who hasn't owned a home in the past 3 years!
Related Reading: Wilmington NC Home Buyers:: First Time Home Buyers Tax Credit May Help You!
© Ginger Sala, Keller Williams Realty Wilmington NC Real Estate & Relocation Specialist: serves the beautiful Coastal North Carolina areas of Wilmington, Wrightsville Beach, Hampstead, Carolina Beach, Kure Beach, Topsail Island, Surf City & Leland. Wilmington NC Living truly has something for everyone!" Visit our website: CoastHomeNorthCarolina.com for Wilmington NC Area Information, Wilmington NC Schools, Wilmington NC MLS listings! Click here to contact Ginger
"Coast Home to North Carolina!"
Looking for an enjoyable "recession proof "way to spend a Sunday afternoon in the park? Come out Sunday for one our area's many free local concerts!
The Cape Fear Jazz Society will present a terrific outdoor concert this weekend, sponsored by the Wrightsville Beach Department of Parks & Recreation at Wrightsville Beach Park! What a great opportunity to hear some of our awesome local Jazz groups while enjoying the Harbor Island breeze!
This years line-up kicks off with Grenoldo Frazier a Fats Waller style pianist and singer.
Next up is the amazing Frank Bongiorno Trio, led by UNCW's renowned Jazz Studies professor on the Sax, Andy Whittington on piano and Doug Irving on bass.
Also on the bill, closing out the show will be The Port City All-Stars, led by El Jaye Johnson on guitar and trumpet, Kevin Kolb on piano, Teddy Burgh on reeds, Tony Mallard on drums and Mike Hanson on percussion.
Refreshments will be available! Hot Dogs Ice Cream! Bring your chairs or blankets! and Picnics and Dogs are welcome!
When: 1-5 p.m. Sunday, May 17, 2009
Where: Wrightsville Beach Park, 321 Causeway Drive
Cost: FREE!
Enjoy!
Ginger
©Ginger Sala, Wilmington NC Real Estate & Relocation Specialist: serving the beautiful Coastal North Carolina areas of Wilmington, Wrightsville Beach, Hampstead, Carolina Beach, Kure Beach, Topsail Island, Surf City & Leland. "Wilmington NC Living truly has something for everyone!" For more information Visit our website: CoastHomeNorthCarolina.com for Wilmington NC Area Information, Search Wilmington NC Homes for Sale!
Its a beautiful "summer like "spring day TGIF in Wilmington NC. The Carolina Blue Skies and sunshine have ushered in a mini heat wave! A great time for to head out to the Mayfaire Town Center and catch another terrific FREE concert on the big lawn!
Tonight's performance promises some great American tunes performed by one of Wilmington's favorite bands Big Dog & Catfish Willie. They are a terrific local cover band with awesome vocals!! Their style ranges from the classic jazzy sounds of Van Morrison to down home country & country rock.
Click the link and check out Big Dog's great cover version of "Into the Mystic!" (one of my all time favs) hang out a while on their site and get a sample their awesome sound with some great streaming mp3's.
Mayfaire Concerts bring out Local residents of all ages! Its a great time for all and a wonderful opportunity to catch up with or make new freinds! Bring lawn chairs, blanket, the kids, the pooches, and consumables of your choice. Dancing is definitely encouraged! Picniking is permitted, so bring your own, or pick up great takeout from the terrific selection of nearby Mayfaire restaurants
The Mayfaire canvas goodie bags will be given away to the first 100 attendees on the first Friday of every month, filled with coupons, gifts and samples from the Mayfaire stores and restaurants.
Where: Mayfaire Town Center On the lawn behind World Market and Ulta (One block north of the Mayfaire Cinema)
When: 6pm Every Friday May 1st -September 25, 2009
Cost: FREE!!!
Hope to see you there! ENJOY!
©Ginger Sala Wilmington NC Real Estate & Relocation Specialist serving the beautiful Coastal NC areas of Wilmington , Hampstead, Wrightsville Beach, Carolina & Kure Beach & Leland NC.
"Coast Home to North Carolina!
The say the best things in life are free and we are blessed here in Wilmington NC with an abundance of "Best Things", like the free outdoor concerts that are hosted every year by Wilmington's Mayfaire Town Center.
We are off to an early start this year as the Mayfaire Music On the Town Concert Series kicks off on Friday May 1st with the popular band Big Fish. The crowd should enjoy the mix of Rock & Roll and beach music also known locally as Carolina Shag!
It's a picture perfect "Carolina Blue" spring day in Wilmington! Come out and enjoy the fun! The Mayfaire Concerts are a great place to wind down or wind up...and meet new friends! Every time we go we meet new folks. Of course our beautiful shepherd/chow Bella loves a good concert ( and meeting up with the local pooches) and she is a people magnet for sure!
Mayfaire concerts are a great time for all ages! Bring lawn chairs, blanket, the kids, the dog, and consumables of your choice. Dancing is definitely encouraged! Picniking is permitted, so bring your own, or pick up great takeout from the terrific selection of nearby Mayfaire restaurants
The Mayfaire canvas goodie bags will be given away to the first 100 attendees on the first Friday of every month, filled with coupons, gifts and samples from the Mayfaire stores and restaurants.
Where: Mayfaire Town Center On the lawn behind World Market and Ulta (One block north of the Mayfaire Cinema)
When: 6pm Every Friday May 1st -September 25, 2009
Cost: FREE!!!
ENJOY!
Ginger
©Ginger Sala, Wilmington NC Real Estate & Relocation Specialist: serving the beautiful Coastal North Carolina areas of Wilmington, Wrightsville Beach, Hampstead, Carolina Beach, Kure Beach, Topsail Island, Surf City & Leland. "Wilmington NC Living truly has something for everyone!" For more information Visit our website: CoastHomeNorthCarolina.com for Wilmington NC Area Information, Search Wilmington NC Homes for Sale!
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Wilmington NC Real Estate Relocation Specialists serving Wilmington, Hampstead, Wrightsville Beach, Kure Beach, Carolina Beach, Leland, & Surf City, "Coast Home to North Carolina with Us!"
When you team with us as you Real Estate advisors, you can count on us to treat your transaction as if it were our own. We are not interested in "selling" you, but in facilitating transactions that are rewarding to you! Our mission is to offer you our in-depth knowledge of the local markets and current trends, open communication, honest feedback, diligent work ethic, genuine caring, and joy in the journey!
BUYERS: When we work together you can depend on us to provide the same V.I.P. treatment whether you are investing a million, or purchasing a starter home, we will work diligently to find the right home for you.
SELLERS: When you list with us you reap the benefits of The Sala Team’s Complimentary Professional Home Staging® Service! Ginger is one of only a handful of Accredited Staging Professional™ Realtors in all of Southeastern NC! As seen on HGTV, the practice of Staging Homes for sale is a hot commodity in California, and helps sell homes more quickly for a higher price. And now we are offering it with every listing as a value-added service!
INVESTORS: We are on top of the market trends and We can help find you the properties that best fit your personal investment goals!
RELOCATING to our awesome Cape Fear Region? We know about that first hand since we relocated to this amazing place from the cold and snowy Northeast. We feel so blessed to call Wilmington our home, and we would truly welcome the opportunity to share with you all that we know and love about our "Little Corner of Paradise!"
Wilmington, Hampstead, Wrightsville Beach, Carolina Beach, Kure Beach, Figure Eight Island, Surf City, Ogden, Porter's Neck, Leland, New Hanover County, Pender County, Brunswick County
It is truly a blessing to live here in Coastal North Carolina! We thank God every morning for the joy of living here. We love the Cape Fear Coast and all the wonderful people who make it their home. When people ask "Where would you live if you could live anywhere in the world"?, we have only one response... our "hometown" Wilmington, NC! If you are thinking of moving here, come on down, you will love it as much as we do! And if you are living here now, then you know what we are talking about!
Thanks for visiting with us today, we look forward to talking with you! 
Wilmington Area Resources
Wilmington NC Real Estate Blogs by Ginger Sala
The $8000 Tax Credit for New Home Buyers just got better!
The U.S. Housing and Urban Development today announced that the Federal Housing Administration (FHA) will now allow home buyers to apply the $8,000 first-time * home buyer tax credit toward the purchase price/closing costs of a FHA-insured home. Housing Secretary Donovan was very hopeful that this new rule action will help to stabilize housing markets by across the country by an increase if future home sales.
New Tax Credit Rules Can Help More Buyers
Originally the American Recovery and Reinvestment Act of 2009 offered First Time Home Buyers a tax credit/refund of up to $8,000. The "old" guidelines allowed this credit to be received as a refund only after the Home Buyers filed tax returns with the IRS. The FHA's new rules allowing state Housing Finance Agencies and certain non-profits to "monetize" up to $8000 of the tax credit (which depends on the amount of the mortgage) so that borrowers can apply the funds toward their down payments.
Lower Monthly Payments Possible... Sound good?
First Time Home buyers * using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate.
Down Payment Requirements & Guidelines
Remember, Borrowers applying for an FHA-insured mortgage are still required to make a minimum 3.5 percent down payment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today's announcement, lenders can now use the tax credit immediately as additional down payment, or for other closing costs, which can in effect create a lower interest rate & monthly payment. In addition to the borrower's own cash investment, FHA allows parents, employers and other governmental entities to contribute towards the down payment.
Projected Home Sales Expected to Climb with New Tax Credit
According to estimates by the National Association of Home Builders, the home buyer tax credit will stimulate 160,000 home sales, 101,000 of which will be first-time buyers who will receive the credit. Another 59,000 existing sellers will be able to buy another home because a first-time buyer purchased their home.
Buyer Beware! Scammers are on the Prowl!
Potential buyers should beware that their are all kinds of mortgage scammers out there, ready to pounce on the unsuspecting. It is crucial to consult with seasoned, respected financial services provider. The local Wilmington NC Area mortgage professionals that we recommend have the outstanding reputation, expertise, integrity & diligence, that every buyer deserves, and they are also FHA approved lenders.
Wilmington NC Homes for Sale
Are you ready to go shopping for your Wilmington NC area home with some Governments money? There are some terrific buys out there! Sellers are eager, prices are down, interests rates, according to the experts will not be going lower, and free money will only be available for a few more months!
Want to get moving??? Call us for more details & to see if you would like to team with us to help you achieve your goals! We'd love to show you what your money can buy. You just might be very surprised!
*Remember definition of first time home buyer is anyone who hasn't owned a home in the past 3 years!
©Ginger Sala, Keller Williams Realty, Wilmington NC Real Estate & Relocation Specialist: serving the Coastal North Carolina areas of Wilmington, Wrightsville Beach, Hampstead, Carolina Beach, Kure Beach, Topsail Island, Surf City & Leland. "Relocating from the cold Northeast to the sunny coast of Wilmington NC has been a dream come true for our family! We love Wilmington's beautiful beaches, outdoor lifestyle, vibrant cultural scene, friendly atmosphere, & down home, yet sophisticated environment. Wilmington NC Living truly has something for everyone!" Visit our website CoastHomeNorthCarolina.com for Wilmington NC Area Information, Wilmington NC Schools, Wilmington NC MLS listings! Click here to contact Ginger
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