Phil Kretchmar

After doing some research into existing home sales by the NAR, the market is slowly turning around.

According to the National Association of Realtors®, existing-home sales increased last month as buyers responded to more favorable housing affordability conditions.

Existing-home sales -- including single-family, townhomes, condominiums and co-ops -- rose 5.5 percent to a seasonally adjusted annual rate of 5.18 million units in September from a level of 4.91 million in August, and are 1.4 percent higher than the pace in September 2007.

"The sales turnaround which began in California several months ago is broadening now to Colorado, Kansas, Minnesota, Missouri and Rhode Island," said Lawrence Yun, NAR chief economist. "The South was hampered by much lower home sales in Houston in the aftermath of Hurricane Ike."

NAR President Richard F. Gaylord of Long Beach, Calif., said low home prices and low interest rates have been attracting buyers. "This is the first time since November 2005 that home sales have been above year-ago levels," he said. "Credit tightened at the end of September, but the improvement demonstrates that buyers who've been on the sidelines want to get into the market to make a long-term investment in their future."

Total housing inventory at the end of September fell 1.6 percent to 4.27 million existing homes available for sale, which represents a 9.9-month supply at the current sales pace, down from a 10.6-month supply in August. This marks two consecutive monthly declines since inventories peaked in July. The national median existing-home price for all housing types was $191,600 in September, down 9.0 percent from a year ago when the median was $210,500.

The national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.04 percent in September from 6.48 percent in August, according to Freddie Mac.

Many home owners remove and clean their window screens before storing them for the winter. This can prolong the life of the screen, and -- if you clean the windows too -- will make your winter view crystal clear. Here are a few tips to make the task easier:

* Remove the screens from the window frame, following the manufacturer's instructions. Be careful not to bend or damage the screen.
* Put the screens on a flat surface, such as the driveway or lawn, and wet the screens thoroughly with water.
* Dip a scrub brush into a solution of 3 parts water to 1 part ammonia and apply to the screen using a very light scrubbing motion. Be sure you don't scrub too hard or push the fabric which can stretch or cause damage to the screen.
* Lightly brush both sides of the screen using overlapping, rotating strokes. In addition, clean the interior and exterior of the frame.
* Rinse the screens thoroughly with fresh water (preferably lukewarm) to make sure all cleaning solution is removed.
* Shake or tap the screen gently against the ground to remove excess water. Let the screens dry naturally, or give a quick wipe with an absorbent towel to speed up the drying process.
* Never pressure wash screens because the force will likely damage them.
* Cover the screens in plastic and store in an out-of-the-way place in an upright or flat position.

By cleaning your screens in the fall, you'll appreciate looking through clean windows all winter, and you'll have clean, ready-to-install screens next spring.

The term "loan discount points" is somewhat misleading. First off, there's no discount involved. Secondly, it's not about points, it's about dollars.

Loan discount points are a one-time fee charged by the lender at closing in order to give you a lower interest rate on your loan. Each point is 1 percent of the mortgage amount; for example, one discount point on a $100,000 loan equals $1,000.

Each discount point paid on a 30-year loan typically lowers the interest rate by 0.125 percent. That means a 7.5 percent rate would be lowered to 7.375 percent if you purchase one point. Paying for points lowers your interest rate because the lender receives the income in a lump sum at closing rather than collecting the interest as you make payments.

Buying points to lower your interest rate is not always a good idea. While buying points is sometimes a good decision, many times the purchase costs you more than it saves. It's very important that you analyze the costs to figure out how many years you need to keep the loan to break-even on paying points. Sometimes it takes 10+ years to reach the break-even point. Do you plan to live there that long? Ask your morgage officer to run the numbers for you to see if it would be a good deal for you or not.

I came acros a recent report from the National Assoc of Realtors regarding the slowing down of existing home sales that I thought was interesting. "Existing-home sales were down in August following a healthy gain in July as tight mortgage credit curtailed activity. Sales rose in the Midwest and South but fell in the Northeast and West. Nationally, existing-home sales -- including single-family, townhomes, condominiums and co-ops -- declined 2.2 percent to a seasonally adjusted annual rate of 4.91 million units in August from an upwardly revised pace of 5.02 million in July".

"The difficulty in obtaining a mortgage increased over the past couple months, making it more challenging for creditworthy borrowers to find financing," said NAR President Richard F. Gaylord, adding the pendulum in the mortgage market has swung too far. "Our hope is that overly tight lending criteria can be loosened with reasonable standards and credit so that sales activity can catch up with demand. Interest rates have already declined, but there is a serious question as to whether a cash infusion by the U.S. Treasury into Wall Street would help consumers by improving mortgage funding. "We urge Congress to restore access to sound mortgage credit so people have the ability to make and keep a long-term investment in the American dream of homeownership. Congress needs to take care of Main Street and not just bail out Wall Street."

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 6.48 percent in August from 6.43 percent in July; the rate was 6.57 percent in August 2007. However, as of late September, the 30-year fixed had dropped to 5.78 percent, the report said. With the recent crisis the mortgage industry is in, it will be an interesting year ahead no doubt.

If your current water heater is on its last leg, or you've decided you need a better unit to suit your needs, consider a tankless water heater when you go shopping.

Tankless water heaters can save energy and money and deliver an endless flow of hot water. While a conventional tank-style water heater continuously stores 40 to 80 gallons of water and keeps it hot until it's needed, a tankless water heater only heats water when it's needed. Obviously, keeping 40 to 80 gallons of water hot 24 hours a day, seven days a week, month after month, wastes considerable energy.

Instead of continuously heating a large tank of water, a tankless water heater circulates incoming water through a series of electric coils or gas burners that heat up automatically when you turn on a hot water tap or appliance. When you turn off the faucet, the elements or burners turn off. In other words, you're only burning energy when you have a demand for hot water.

There are several varieties of tankless water heaters, from small electric point-of-use models (for use at a specific location, such as a kitchen or bathroom sink) to larger gas appliances that supply the entire house. Point of use models start around $150 and larger units capable of supplying more hot water start around $750.

Having a tankless water heater might cost more at first, but you should be able to recoup that cost and save money during the life of the heater.