You may have heard but ...the interest rates dropped substantially recently on the heals of the Fannie Mae and Freddie Mac takeover by the government. This could mean substantial savings for you if you have been sitting on the fence. And it could be good news for sellers whose homes are not selling.

The other thing to know is that the mortgage requirements are getting more stringent, and it is expected that we will see even more  and tougher, standards next year. Many folks who might qualify now may not do so next year. And if the rates go up too...

Finally, you probably know that the higher mortgage limits are going to end at the end of this year for certain mortgages (e.g., FHA). This means some loans for median priced homes, say in the Carlsbad area, will then, again, become jumbo loans.

Is this YOUR opportunity to buy?

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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by

phone or text at (760) 840-1360 or email me at JDowler@remax.net.

All content copyright © 2008 Jeff Dowler

One option buyers have (and those who are refinancing) is to lock in their interest rate (i.e., so your rate does not change even if the rates for your particular mortgage program shift up).

The mortgage company will quote you a particular rate when you first get pre-approved. This rate MAY or MAY NOT ultimately be the best rate, depending on what rates are doing at the time.

Right now it might be prudent to lock in your rate, since they are the best they have been in about 2 years.  But I am not a mortgage professional. So check with YOUR lender to see what they recommend.

A rate lock will usually last up to 45 days (but they vary from program to program), so depending on when closing is scheduled, this may or may not work. Also, if the rates seem to be trending downward, your lender may suggest watching the trends before you pay the fee (if there is one) to lock in.

On the other hand, if rates are expected to go up, or are starting to move in that direction, locking in may get you the best rate NOW and save you some bucks on your monthly payment.

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Start your CARLSBAD HOMES SEARCH here (and other San Diego communities)

Download FREE BUYER AND SELLER REPORTS here

Visit CARLSBAD COMMUNITY REPORTS for profiles on communities, subdivisions and neighborhoods (including other areas)

Are you a first time home buyer. Check out First Time Buyer Central.

Have you taken a look at the interest rates recently?

If you have been holding off buying, thinking that prices may go down, you might take a serious look at the interest rates.

$   $   $   $   $  

Prices are changing in some areas, but not all. But another important financial consideration are the INTEREST RATES. The rates have DIPPED BELOW 6% for fixed rate mortgages, the lowest in 2 years. We don't know where they will go in the future, even with the Feds recently cutting the rate another 1/4 point.

Even if prices drop a bit, if the rates go up, you could lose out on the best combination of home price and monthly payment that we've seen. And it may be THE TIME for you to refinance your current mortgage as well.

Talk to your mortgage professional to see if NOW is the best time to make that move.

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Start your CARLSBAD HOMES SEARCH here (and other San Diego communities)

Download FREE BUYER AND SELLER REPORTS here

Visit CARLSBAD COMMUNITY REPORTS for profiles on communities, subdivisions and neighborhoods (including other areas)

Are you a first time home buyer. Check out First Time Buyer Central.

I just posted a Market Update Guest Blog which focuses on the mortgage industry and recent issues, especially in the subprime market. The next few weeks will be telling in terms of the impact this may have on some buyers (those who would have normally been looking for 100% financing).

It is helpful reading, and reprinted verbatim with the author's permission. Good article for both buyers and sellers in this housing market.

I recommend you take a look at it.

Jeff