Minnesota Mortgage Rate Update

In case you haven't noticed, Minnesota mortgage rates have been on the rise recently. This is due to a number of facts including;

• To fund the stimulus package, our government is selling treasury bonds which compete with mortgage bonds, raising bond interest rates which raises mortgage rates.
• Mortgage lenders are flooded with mortgage loan applications from both refinance and purchase borrowers so they don't need to be as competitive on rates.

What this means to a Minnesota first time home buyer or Minnesota home owner thinking about refinancing their Minnesota mortgage is, you may want to seriously consider doing something soon. While I don't claim to have a crystal ball and I would rather be proven wrong on this, there are certain market forces out of our control that are pointing towards higher rates.

The bottom line is we can't have our government stimulus and low rates too!

Stay tuned

Minnesota First Time Home Buyers To Get $8,000 Tax Credit

It's finally official, the dust has settled! President Obama signed into law a fantastic incentive to first time home buyers this week. For Minnesota first time home buyers this means that now there are three good reasons to go house shopping;

1. An $8,000 tax credit from the government that you don't even have to pay back if you live in the home for more than 3 years.
2. Low 30 year fixed Minnesota mortgage rates, at roughly 5%, which is unbelievably low, just ask any home owner you know.
3. Minnesota home prices have been declining for the past two years and there are some fantastic deals out there in some great neighborhoods.

It's possible that falling home prices will start to stabilize soon as that is our governments intention with all the money they are throwing at the housing industry. With that in mind, this would be a good time to contact a mortgage broker and determine whether or not you qualify to buy a home, the qualifications have become much more difficult in the past few years, and how much you qualify for so you can start looking. It can take three months or longer to find a home so if your gaol is this summer, you'll want to get pre-qualified soon.

Tax Credit Aid For Minnesota Home Buyers May Double

I'm not sure if you've heard yet but if you are a Minnesota first time home buyer, or a first time home buyer in any state for that matter, you may be eligible for a $15,000 tax credit. Originally only a $7,500 tax credit, which was still a great deal for Minnesota first time home buyers, having this doubled to $15,000 is starting to get some Minnesota home buyers of the couch.

With interest rates on 30year fixed Minnesota mortgages still at historic lows, home prices continuing to fall and now this $15,000 tax credit, I think the bottom of the housing market is getting near. I have already heard stories of multiple offers from local real estate agents and when you start hearing more and more stories like this, you know the housing market is slowly starting to reverse direction and home values will soon start to hold their own and then begin to rise again.

Don't think you can time the market and buy at exactly the bottom. If you find a house you like in a neighborhood you like at a price that is comfortably in your budget, then I'd say you should buy the house and get on with your life. Just a thought.