Fritz Pfister

Have you thought about making a move? The government just announced an up to $6,500 tax credit for families that purchase a home who have lived in their current homes five consecutive years within the preceding eight years. The program requires that you must have a home under contract by April 30, and closed before July 1, 2010. There are income limits, $125,000 for singles and $225,000 for couples.

This might be the best chance you will have to sell your home in the foreseeable future. There are a number of economic factors for you to consider. First I don’t recommend buying another home before you sell your current home. The financial risks in this economy are too great, and could lead to significant financial losses if you don’t sell first.

Economic factors:

1. Interest rates are at 40 year lows. This is the result of the Federal Reserve setting aside $1.3 trillion to purchase bonds below market rates with the goal of keeping consumer loan rates low. Over $1 trillion has already been spent. When the program ends mortgage rates will go up. If you don’t plan to move and you have an over 6% interest rate on your mortgage, I recommend you refinance.

2. Economic policies including deficit spending are weakening the value of the dollar which has a high probability to result in hyper inflation. The Fed will raise interest rates to combat inflation.

3. Unemployment is predicted to go to 11% which will adversely affect the number of home buyers in the market. As with ‘cash for clunkers’ creating an incentive for people to buy before they planned, the demand for homes after April 30 will decline. The greatest opportunity to get sold, and at the best price will occur now until April 30.

4. There has never been a time when interest rates have been this low, home prices so affordable, and the government paying you $6,500 to buy a home (compliments of the U.S. taxpayer).

If you would like to discuss this unprecedented opportunity to make a move, call Fritz at 652-7653. It would be Fritz’s pleasure to help you create a plan to achieve your goals.