One source reports that interest rates have been in the low range over the past year. Some interpret this as a sign of stagnation; they assume that since rates have stayed relatively low for so long, this trend is likely to continue.

However, the housing market is much too complex to judge based on one element. Let me show you how another headline can change this assumption:

Another source cites an economic analysis company and states that the “housing crisis” is likely to end in 2012 because of loosening credit standards by lending institutions. While average credit scores and other requirements remain unchanged since last year, other elements, such as credit availability due to relaxed loan-to-value ratios, will make it easier for qualified buyers to borrow. The analysis company is still cautious and explains that other elements may affect the market. However, when considering a relaxing of lending rules against a backdrop of record-low rates, it becomes clear that today’s low rates will not last forever.

What does this mean to you and your family? If you are in the position to buy a home, now is the best time to make the move. To wait means risking higher mortgage rates that will give you a higher payment and affect your monthly budget. The same is true for sellers; selling in today’s market means more buyers available (they also want the great interest rates), as well as a better opportunity to save money on your new mortgage, whether you need a larger house or want to downsize into a condominium.

Buying or selling a home is one of life’s most important decisions; make sure your decisions are based on customized advice from an experienced, qualified agent. I am a Certified Residential Specialist ranked in the top 4% of Realtors nationwide; every day I give people just like you personalized, honest advice to help them make the best decisions. Contact me today by phone at Heather Morris, 319-350-7653, by email at Heather@HeatherMorrisRealtor.com, or at my website, www.HeatherMorrisRealtor.com.

Once again, the FHA has extended the temporary waiver of its anti-flipping rule. The hope is that waiving the rule through the end of 2012 will encourage sales of homes in communities where there is a high foreclosure rate. Buyers will be able to continue to use FHA financing in the purchase of HUD and bank-owned properties.

There are strict conditions under which the waiver can be implemented. The fear is that if they make it too easy, predators can sweep in, buy the property for a song, and sell it at an inflated price to an unsuspecting prospect. In order to prevent this abuse, one of the conditions is that there be no link (say, father to son, brother to brother, etc.) between the parties who are buying and selling a given property.  It’s called an arms-length transaction.

The Waiver states:  “Section 203.37a(b)(2) of the FHA regulations, 24 CFR 203.37A(B)(2), is hereby waived… with regard to sales of properties acquired by mortgagees, whether sold directly by the mortgagees or by their subsidiaries or by vendors to whom they have transferred titles to properties for the purpose of effectuating sales of those properties.”

There are some people who think that the waiver is worded in such a way that it doesn’t really benefit people who aren’t in the foreclosing/lending position. That is a pretty big exclusion. The term “mortgagee” refers to the person who actually foreclosed on the property. To be considered a “vendor” you must have some sort of a contract with the lenders.

It remains to be seen just how much effect the extension of the waiver will have on the actual market.

I want to help you with your real estate needs.  If you want to find a home in the Cedar Rapids/Marion area, call or text me at 319-350-7653(SOLD) go to my website http://www.heathermorrisrealtor.com/#contact.

4 new listings, many floor plans and lots to choose from.