Mortgage rates continue to fall sharply.  Bloomberg reports a nationwide average for 30-Year Fixed at 5.64%, that is down 35 basis points (0.34%) since the Fed announcement last week.  In my office Weichert is offering morgages at 4.99% with one point.

The Morgage Bankers Association index of mortgage applications to purchase a home rose 38% last week.  As I predicted here, the Fed’s announcement sent the rate on 30-year fixed mortgages to a 3-year low.  This is a big gift to people who are ready to buy homes a levels significanly lower than they were a year ago. 

 I am going to go out on a limb here and say that home prices as reported by Case Shiller and RPX will be at least 5% higher by Jan 1, 2010 than they are today in the NY metro area.

On my website http://www.JayNadelson.com  I have posted Bank Owned and Short Sale properties in the following towns at the request of a customer.  They are Basking Ridge, Warren, Watchung, New Providence and Berkeley Heights.  Go to the Vacant Home Sales tab.