How Low Can They Go?

I just saw an article about how mortgage rates are as low as they have been in my lifetime - currently as low as 4.87 percent for a 30-year fixed rate mortgage (according to Bankrate.com).

If you're ready to buy a house now or in the near future, this might be one of the best times to buy because house prices are nearly as low as the mortgage rates! The worry is always that the prices and rates won't stay low for long. I don't have a crystal ball, but it seems like housing prices are starting to trend upward, and mortgage rates probably will soon as well.

Lawrence Yun, who is the chief economist at the National Association of Realtors, doesn't think it will last long. "I think they won't last much longer than a month or two at best," he said recently. "I can see them going up to 5.5 percent by the end of June, if not sooner."

There are a lot of good, affordable houses on the market right now; and I'd love the opportunity to work with you to find the right one for your needs. Contact me at 320-894-7528 or at noah@farmlandman.com today and we can discuss your situation and start sorting through the housing inventory. Now is a great time to buy!

Spring Planting Progress

This spring has gone remarkably well for platning. I saw a communication from the beet plant the other day saying that 2010 planting is complete, which is much better than last year at this time.

I checked the USDA Agricultural Statistics Service data, and it appears that most crops are ahead of schedule as compared to last year. As of May 3, it said that 97 percent of Minnesota's sugar beet acres were planted; while just 19 percent were planted last year at this time. The five year average for sugar beets is about 44 percent through April.

Likewise, about 87 percent of corn acres were planted; as compared to only 56 percent last year and 41 percent for the five year average. Nine percent of corn is already emerged, compared to 1 percent each of the last five years.

Only about 19 percent of soybeans are planted, but that is also way ahead of schedule in comparison to the last five years. In contrast, nearly 100 percent of oats, barley, and spring wheat are already planted.

If the weather continues to cooperate, this should be a good crop year.

First-time Homebuyers

If you are a first-time homebuyer, now is a great time to buy a new house. Some of you may have heard about the tax credit for first-time homebuyers established in 2008, under the Housing and Economic Recovery Act. It was worth up to $7,500, and perhaps spurred some real estate activity.

But I’m guessing everybody has heard about the American Recovery and Reinvestment Act (ARRA), more commonly known as the Stimulus Act, of 2009, which expanded the first-time homebuyer credit up to $8,000 for home purchases made in 2009 before Dec. 1. However, the deadline was recently extended, in an effort to continue to spur the market.

Now, according to the IRS website, “taxpayers who have a binding contract to purchase a home before May 1, 2010, are eligible for the credit. Buyers must close on the home before July 1, 2010.” ~ http://www.irs.gov/newsroom/article/0,,id=204671,00.html

This can be a very good deal for first-time homebuyers who purchased a home in 2009, who can actually claim the credit on either their 2008 return or their 2009 tax return, which is due on April 15, 2010. For more information, visit the IRS question and answer section at: http://www.irs.gov/newsroom/article/0,,id=187935,00.html

If you are a first-time homebuyer who is ready to buy a house now, give me a call at 320-894-7528 or e-mail me at noah@farmlandman.com.

Happy Easter!