Only 16 days left to execute a contract to quality for the first time home buyers $8000 tax creditor the $6500 for repeat home buyers. Contracts must be executed no later then April 30th 2010 and must close on or before June 30th 2010.
Market activity has been robust even in light of the slow down normally associated with the spring and easter breaks. "It may be that everyone who wanted to take advantage of the credit has already done so, still we are bracing for a last minute rush," Said Executive Sales Manager Gene Anne Mckay.
Luckily for those last minute home buyers, interest rates are still relatively low. Mike Jones, Senior Mortgage loan Originator at Alarion Bank says " Right now we can lock a rate for up to 90 days without charging a fee. There is so much volatility in interest rates.The biased is for mortgage rates to go higher, but it literally has been changing on a daily basis. It might be best to lock in and take advantage of opportunity to secure your interest rate that will last until the June 31st 2010 deadline to close."
"Locking in" is the lending term for taking the rate offered today instead of waiting until you close on the note and mortgage. It protects consumers from higher interest rates, though at the expense of potentially giving up lower rates later on.
Karen Godley, a sales agent with Bosshardt, said that she thinks a lot of people don't realize that the tax credit is about to expire, or that they believe it will be extended. "I hope they extend it. I've done more business in the first quarter of 2010 then I did all last year."
The market is stronger. We have seen close sales up 9% year to date, and our inventory of deals set to close over the next 60 days is up 40% over the same time one year ago. Whether or not the increase in activity continues after April 30th is anyone's guess at this point.