Low mortgage rates and the implementation of the Obama “Making Home Affordable” program for mortgage modifications are making a dent in real estate gloom. Pending home sales for March were up 3.2% from February and 1.1% over March of 2008 according to the NAR. Meanwhile, first time home buyers are showing interest in buying homes to take advantage of the new $8000 tax credit for doing so by 12/31/09. We’re also beginning to see JUMBO loans with decent rates coming back onto some lender’s rates sheets. Today Fannie and Freddie’s increased “high cost area” loan amount limits are going back up to $729,750, from $625,500. It’s nice to have some good news to share!

 
Have we reached bottom yet? The stock market is acting like it thinks so… with a solid 5 week rally through most of March and another rally today that sent the DOW up 2.6% and the S&P up 3.4% to a four month high point. Stress test results are due Thursday but these may have less impact than once thought since Washington was indicated that none of the financial institutions involved will be liquidated as a result of the test findings.

 
Big changes started May 1st affecting the way mortgages are done. A federal bill called HVCC is prohibiting mortgage brokers from ordering their own appraisals beginning May 1st. This is a terrible change that puts control of property valuations solely in the hands of lender controlled appraisers. We’ve already seen evidence that this will cause more abuse of the home valuation system… and will increase costs for borrowers. Write and call your representatives about this one since it will definitely effect you!

 
So we’re not out of the woods yet, but there are glimmers of light ahead. We still need lenders to lend. And this seems to remain the biggest hurdle for the real estate market and the broader economy. Hopefully lending will increase in May, but stay tuned for updates on this.

Finally, for those of you who are wondering, I am still here. I just needed to take a break from writing this update for a few months due to my workload. Never fear. All is well! I hope you have a great week! Remember, each day is a new opportunity…