Comey & Shepherd - Cincinnati Living Online

Cincinnati Real Estate: Rising Interest Rates

I received some useful information from one of the loan officers I work with, Mike Zipfel from Midwest Mortgage. Home loan interest rates have been on a downward trend for the last few months, however as the economy begins to stabilize, and the stimulus money enters the economy, interest rates are beginning to rise. In the last week, rates have risen above 6% for the first time in recent history.

There are wide economic factors that drive interest rates and a number of economists on a recent NPR program feel that as inflation begins to appear interests rates will rise. A 1% change in interest rates can make a difference in the price range that a buyer afford. Below is a table that shows the impact a 1%  interest rate increase can have in the monthly payments on a  30 year mortgage.

With this information in mind we are suggesting that any prospective home buyers who have been considering making a move do so now to take advantage of the affordability of Cincinnati’s current real estate market, the low interest rates, and the $8,000 tax credit for first time home buyers.

REALTORS Lobby Congress for Changes in Economic Stimulus Plan

The National Association of REALTORS is actively lobbying the U.S. House of Representatives for specific changes to the H.R. 1 Bill, The American Recovery and Reinvestment Act of 2009.

In 2008 Congress introduced a $7,500  refundable tax credit in the Housing and Economic Recovery Act of 2008 (H.R. 3221), the amount taken by a homebuyer is to be paid back over a 15-year period. The major change under H.R. 1, is that he $7,500 would become a full tax credit – the homebuyer would not have to pay it back.

Near the end of 2008 NAR presented Congress with “Unlock America’s Economy” – a stimulus plan aimed at the housing market.

NAR will continue lobbying Congress to:

1) make it a true tax credit (not an interest-free loan)

2) extend the credit to December 31, 2009, and

3) make it available to all buyers (not just first-time buyers)