This time last year we were coming out of one of the worst financial and real estate situations the Charlottesville area has ever experienced. Home sales and home values were down. Most economists were predicting a slow start to 2009, and boy were they right! Although they predicted a slow start, they also predicted that 2009 would end with a bang, and it did! Home sales were up and mortgage rates were down. Nationwide we saw a 7% annual increase in home sales compared with 2008. Very soon we can expect the Charlottesville Area Association of Realtors to announce the year-end 2009 market report. Locally we are expecting to see very positive news. Once it’s published, we will send you a copy.

Although it’s comforting to know the real estate market is on the mend, it’s important to remember money is getting more expensive and interest rates are predicted to rise. Freddie Mac’s deputy chief economist, Amy Crews Cutts, says the “Federal Reserve’s scheduled phase-down of its multi-billion dollar purchases of mortgage backed securities, plus expected moderate growth in the economy, will force rates at least a percentage point higher.” Mortgage rates are expected to rise above 6%. If you are homebuyer and concerned about your mortgage rate, it’s probably a good idea to nail down your financing situation. Talk to your lender and determine a plan of action. If you need a local Charlottesville lender, please let us know. We have several reputable lenders we can refer your way.

Below are mortgage rates from yesterday.

MBS 30-Year Conventional – 5.125 with 1 point

FHA Programs – 5.194 with 1 point

VA Programs – 5.194 with 1 point