· The US government through Fannie Mae and Freddie Mac has been buying most of the mortgage back securities on the secondary market for some time and that combined with the Federal Reserves policy of keeping the discount rate at 0% has artificially kept interest rates low. At the end of the first quarter of this year the government will no longer be buying these mortgage backed securities and private investor will demand higher rates of return will means the interest rates WILL GO UP.

· The tax credit for the first time homebuyers (up to $8,000) have been extended to the end of April to be under contract, closing by the end of June. They then added a new credit for move up buyers (up to $6,500) that has the same deadlines.

· Our housing inventory of available homes for sale has dropped dramatically over the last year which means buyers will have fewer choices.

All of these factors combine to provide opportunities for both buyers and sellers. For buyers, now is the time to take advantage of these low rates and affordable home prices before they both go up.   For sellers, now is the time to put your home on the market while the inventory is low and the buyers will be coming out.

Sales activity has been increasing every month since August and many signs in the economy point towards a recovery so it appears we have passed the bottom and it is time to move.

Please let me know if you know of anybody looking to buy or sell. Time is of the essence.