Happy Friday,

We have a lot to talk about today. Home resale’s in September clocked the largest monthly increase in 26 years as buyers scrambled to complete their purchases before a tax credit for first-time owners expires on November 30th. Sales jumped 9.4% from a downwardly revised pace in August per NAR. That pace was the strongest in two years and beat Wall Street forecasts. I have recently had quite a few questions in regards to the First Time Homebuyer Credit. Your Congressmen are working on an extension with a possible gradual decline in benefit over time in 2010 for possibly a straight extension until June. Read here about the latest details: http://www.cnbc.com/id/33450502

Now, let’s deal with a fact that no one is willing to talk about. The government is purchasing all of the FANNIE MAE and FREDDIE MAC instruments at ridiculously low prices. They have extended their buying spree until March of 2010. What happens when they stop that? Will rates go up .20 basis points? .40 basis points? Will rates go to 10%? It is something to think about. Wall Street is not purchasing these mortgage backed securities right now because they want higher yields on their money. So, the government has stepped in to buy them at low rates. When the government stops buying, the rates will go up. Do you have a buyer who is waiting on the sidelines? Someone who just hasn’t found that perfect house? I can tell you that they WILL miss the boat if they don’t act now and purchase a property. Read more about increasing rates: http://www.cnbc.com/id/33281099

Now, for the fun part of the week; Windows 7 was released this week. The reviews are coming in and great things are being said. Check it out for yourself: www.microsoft.com

Have a great weekend and let us know if we can assist you in any way.

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