Good News in Real Estate!

TThere are new indications the battered U.S. housing market may be closer to a recovery.

A survey by the Mortgage Bankers Association finds mortgage applications jumped 4.7 percent last week, with the vast majority of the applications for new home purchases.

The increase came even as interest rates for home loans edged higher in the past few days. However, the rates are still close to historic lows.

Many economist blame the collapse of the U.S. housing market for helping to trigger the global financial crisis, and some say the housing market must stabilize for the economy to pull out of recession.

Meanwhile, two of America's top builders are joining forces to create the largest U.S. homebuilder. Pulte Homes said Wednesday it will buy Centex for $1.3 billion in stock.

Pulte Chief Executive Richard Dugas says the deal will "accelerate our return to profitability."

Pulte and Centex hope the deal will save the combined company $350 million a year.

U.S. government efforts to lower interest rates, combined with falling home prices, helped U.S. home sales rise at the fastest pace in almost six years in February.

However, efforts to revive the U.S. economy do not seem to be helping those who own apartment buildings.

Reis Inc., a real-estate research firm, says vacancy rates rose to a five-year high during the first three months of 2009. Reis says the trend contrasts with a decline in the cost of apartment rentals.

Rates are now below five percent

Updated: Wednesday, 01 Apr 2009, 7:20 PM EDT
Published : Wednesday, 01 Apr 2009, 5:00 PM EDT

SPRINGFIELD, Mass. (WWLP) - Are you in the market to buy a home or maybe refinance your mortgage? 22News reporter Jaclyn Cashman went to a local lender to learn about historically low interest rates.

One of President's Obama's housing missions was to get interest rates lower to encourage people to get in the market. One local bank says his plan is working.

With Mortgage interest rates now below five percent, homeowners and house hunters are looking to refinance or buy a property.

The mortgage department at Polish National Credit Union in Chicopee has help several customers to "Pre-qualify."

Laura Roy-Epstein of Polish National Credit Union told 22News, “Primarily what happens is you have to be pre-qualified before you work with a realtor so they want to know you are financially capable to buy the home you are looking at and I would say pre qualification activity has been very high."

In order to get one of these historically low interest rates you first have to have a very good credit score of a 740 or better. If You don't have a good score you are encouraged to first work on that before applying for a mortgage."

Most interest rates are credit score driven. If you are a prime plus borrower you can get a thirty year fixed mortgage for 4.75 percent or a fifteen year mortgage for 4.375.

Paul Demears of Chicopee says he plans on refinancing. His current interest rate is nine percent. Lets just say his mortgage is $100,000. If he can refinance and get a five percent rate, that would save him 3,000 a year.

But for some, regardless of how home prices fall or how low interest rates get, the American Dream still seems unattainable.

Marissa Martineau of Turners Falls told 22News, "I am a single mom so I don't even see it in the future."

If you would like more information on mortgages and the current real estate market. Tune in this Sunday at noon following meet the press for 22News in Focus. It is a half hour program dedicated to housing. We have several professionals in that field joining the discussion.

Julianne Krutka is a Western MA Realtor Delivering Professional Real Estate Services to theResidents of Western Massachusetts and Northern Connecticut.Looking for your Dream Home? Begin your search here!

Rates are now below five percent

Julianne Krutka is a Western MA Realtor Delivering Professional Real Estate Services to the
Residents of Western Massachusetts and Northern Connecticut.
Looking for your Dream Home? Begin your search here!