Freddie Mac today released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage averaged 4.85 percent with an average 0.7 point for the week ending March 26, 2009, down from last week when it averaged 4.98 percent. Last year at this time, the 30-year FRM averaged 5.85 percent. The 30-year FRM has not been lower in the life of Freddie Mac’s weekly survey, which dates back to 1971 for the 30-year FRM.
Potential homebuyers are taking notice of these historically low mortgage rates. Both new and existing home sales rose 5 percent in February. First-time homebuyers accounted for half of all existing home sales, according to the National Association of Realtors®. In addition, mortgage applications for home purchases consecutively rose over the first three weeks in March, based on figures published by the Mortgage Bankers Association.
What the federal government is doing seems to be working, so it is time to get out there and buy some real estate. There has never been a better time to buy a home. Money has never been cheaper to borrow, prices of homes are at record lows and banks are now equipped to lend money again. Also, first-time home buyers will have until December to take advantage of the $8,000.00 tax CREDIT for 2009.
Now, for all you sellers out there that are worried about what they will end up getting for their home, remember that you will make as much or more when you buy that next one. So, get out there and find your dream house!! Trust me, real estate is the best investment for 2009 and beyond.

Contrary to headlines announcing falling home values, foreclosures and other consumer blues, there is now news that many homeowners are happy with their current homes and think this is a great time for buyers to enter the market.

According to a recent Pew Research Center Social & Demographic Trends survey, 90% of participating homeowners view their home as a comfort in life instead of a burden, even as market values drift downward.

These happy homeowners also tend to give high marks to their community for cost of living and available cultural activities, and though 79% say it’s a bad time to sell a home in their area, 65% feel it’s a good time to buy.

This trend squares with the current news that February home sales were up 5.1%, the biggest surge since 2003. As for the folks who regard themselves as burdened homeowners, nearly half (45%) say they’re likely to move in the next five years but expect to have a rough time doing so.

Nine in ten of these burdened owners say it’s a bad time to sell a home in their area, and are staying put for the present in communities they gave fair-to-poor marks for cost of living and cultural aspects. So, it’s still mostly “home sweet home” for many owners around the country, and those looking to join their ranks can find great opportunities in their home searches around the country.

Five reasons to buy a home this year:

People are afraid to buy a home in times like these, with the economy tanking and home prices continuing to fall. But if you’re brave enough to stray from the herd, you might be in for the home-buying opportunity of a lifetime.
If you’re qualified to buy a home now,and the purchase makes sense for your situation and you’re prepared to live in that home for at least five years, there are five reasons why you may be headed for a great deal:
1. Affordability is better than ever.
According to the National Association of Realtors housing affordability index, homes were more affordable in December 2008 than at any other point since the group started the index in 1970. The affordability index is a measure of the relationship between home prices, mortgage interest rates and family income. A recent report from Moody’s Economy.com predicted that house prices will stabilize by the end of 2009. By the end of the real-estate downturn, prices will have fallen by double digits, from peak to trough, in almost 62% of the nation’s 381 metro areas, according to the report. In 10% of the areas declines will be more than 30%. However, not all markets have experienced huge drops, so it’s wise to take a look at how far prices have fallen in your area.

2. You have a large inventory to choose from.
In many places it is taking months to sell a home, creating loads of inventory — from new homes to existing homes to foreclosures. There was a 9.6-month supply of unsold existing homes in January given that month’s sales pace, according to NAR. For new homes, the inventory hit a 13.3-month supply at the end of January, giving buyers a larger selection to choose from, while driving prices down. It is fair to say that home sellers have become increasingly desperate. People who have had “for-sale” signs in the yard for six months are becoming in tune with the reality of the situation. But if you put off a purchase until inventory shrinks substantially, you might not get as good a price. It’s nearly impossible to predict the exact bottom of the housing market and even if you do, there is no guarantee you will make a killing.

3. Builders are offering big discounts.
Home builders are getting even more aggressive with their pricing. I recommend looking at completed new homes first because builders are offering such deep discounts. In working with builders, often buyers try to buy without a agent– Big mistake! There are many reasons why you still need a Realtor, just as you would if buying an existing home listed on the market. There are many things to negotiate like; price, inspections, warranty… Furthermore, if it is a “spec” home, then possibly even repairs.

4. Mortgage rates are historically low.
It’s not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments. These days, rates are very attractive for conforming loans, those that can be purchased by mortgage agencies Fannie Mae and Freddie Mac.
Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades. Rates have stayed relatively near that low for weeks. This week, the 30-year fixed-rate mortgage is 5.2%. Keep in mind that low rates don’t mean lenders are handing out mortgages easily. You’ll need good credit, a substantial down payment and a willingness to document your income in order to qualify for those great rates, if you can qualify at all.

5. You can get a federal tax credit.
There is now a federal credit of up to $8,000 for first time home buyers. Unlike the previous credit, this is money that doesn’t have to be paid back. That extra cash will come in handy. The average first-time home buyer spends about $6,000 in the first six months of owning a home. Waiting for further federal developments, however, might sap a buyer’s negotiating power, as more people get back into the market and competition returns.

You can throw your “future” projections — and predictions — of resets and foreclosures out the window.

That is “old news”, which will be rendered increasingly irrelevant over the next month or two, as lenders scramble to implement the President’s new Home Affordability & Stability Program.

The biggest tidal wave in homeowner mortgage history will happen over the rest of 2009, as mortgage industry continues to adjust throughout the country.

As someone well versed in both buyers and sellers, I’m looking forward to the rest of this year and 2010.

To answer the original question, this is THE best time to buy real estate in the past 4 to 6 years. Yes it is and I say go out and find one, you will never see prices or mortgage rates this low again in this century.

Since you’re searching for an above-average agent, look for evidence of advanced training and professional recognition and membership in professional organizations, all signals of commitment to the profession.

Here are the most-important areas to investigate:

1. May I see your resume?
There are about 2.6 million real-estate agents in the country. They’re licensed by their states, and each state’s licensing and education requirements are different. About half of the agents belong to the National Association of Realtors. Those members call themselves Realtors. NAR membership doesn’t have to be a deal breaker, but it provides some assurance, since the industry group requires ethics training periodically and members must subscribe to its code of ethics.

2. What’s your commission?
Traditionally, a seller pays around 6% in commissions when using a real-estate agent — 3% goes to the seller’s agent and 3% to the buyer’s agent. But commission amounts aren’t cast in stone anywhere.

3. What makes you special?
Don’t settle for someone who just promises to show you homes or list, advertise and sell your place; every agent has to do those things. What you want to know is, “What sets you apart? What will you do to go the extra mile for me?”

4. How often will I hear from you?
Your agent’s communication style and availability should mesh well with yours. Prepare for your agent interviews by asking yourself whether, for example, you’d need a twice-weekly check-in, even if there are no homes to visit. Do you expect a report after someone tours your house for sale? Do you prefer to keep in touch through phone calls or e-mail? How promptly do you want a response? While you’re inquiring about the agent’s availability, remember to ask who will return your calls and show houses if your agent is out of town.

5. What’s your plan for marketing my home?
No agent can guarantee she’ll sell your home. But she can tell you what steps she’ll take to bring it to the attention of buyers. Press for details like, “Are you going to post this on a Web site? Will you have someone stage my home?”

6. How many transactions did you complete last year?
Some agents keep score in dollars, saying, “I sold $50 million in real estate last year.” But property values vary from market to market and house to house, so what you really want to ask is, “How many deals did you complete?”

7. What do you know about the neighborhoods where I want to live?
A super salesperson is no good to you if she isn’t doing an active business in your target neighborhoods, so ask how many of the homes he or she sold last year were located where you want to buy and how many listings she has there now. Agents have a wealth of data at their disposal from local multiple listing services. Good ones will share it, educating you about the median income and educational level of a neighborhood’s residents, for example, or telling you what proportion of residents work close to home or suffer long commutes. They can’t discuss school performance or crime — that would violate fair-housing laws.