By Derek Kravitz, The Associated Press

WASHINGTON — The average rate on the 30-year fixed mortgage this week dropped to 3.94 percent, the same record low set in October.

Low rates offer a historic opportunity for those who can afford to buy or refinance. Still, many people either can’t take advantage of the record-low rates or have already done so.

The rate on the 30-year home loan fell from 3.99 percent the previous week, Freddie Mac said Thursday. This week’s 3.94 percent average matches the lowest on records dating to the 1950s.

The average on the 15-year fixed mortgage fell to 3.21 percent from 3.27 percent. That’s also a record.

Rates could fall further still. Many economists think the yield on the 10-year Treasury note could creep lower in 2012. Long-term mortgage rates tend to track the 10-year Treasury yield.

Should the Federal Reserve launch a new program of bond purchases in the coming months to try to help the economy, that could further drive down mortgage rates.

Mortgage applications have risen slightly in recent weeks but are up from extremely low levels, according to the Mortgage Bankers Association (MBA). Last week, refinancings rose more than 9 percent, while loan applications to buy homes fell more than 8 percent.

Some lenders have reported an increase in applications through the Obama administration’s refinancing program. That program was broadened in October to allow up to 1 million more homeowners to lower their mortgage payments. But the MBA said such government-assisted loans account for just a small portion of refinancing.

To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.

The average rates don’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for the 30-year loan rose to 0.8 from 0.7; the average on the 15-year fixed mortgage was unchanged at 0.8.

So what about it?

The numbers don’t lie.  If you need to refinance your home - you could save hundreds of dollars on your house payment - now is the time to do it.  Or if you were sitting on the fence waiting to buy a home - jump!  Let me show you how to buy a house NOW!  CALL US! 425-413-6428

As we move into the holidays and winter months, sellers start taking their homes off the market in droves so that they can re-list in the spring, and the pace of new listings hitting the market slows dramatically. Historically , these three months have had the fewest amount of homes on the market all year. For example, in December 2010, there were 5,455 new listings that came on the market in King, Snohomish and Pierce counties. Compare that to April of this year, where 10,083 new listings came on the market, and you can see that there is nearly twice as much competition for home sellers in the spring than there is now. This mass exodus of inventory causes there to be much less homes for buyers to choose from, thus forcing the buyers to be more competitive with each other.

Now, the natural rebuttal to this would be, "Well aren't there more buyers in the spring and summer than the winter?" And the answer traditionally is yes--although this year there were actually more closed sales in October and November than March and April--but the biggest factor is the level of motivation of buyers shopping in winter/holiday months. While everyone else is spending time relaxing at home with their families during the holidays, these buyers are out there, driving in the snow and rain, and are actively looking for homes. This is because they are making buying a home their first and most focused priority. So while there may be fewer showings in the winter, each showing is typically much more qualified than a lot of the casual home buyers that come out in the spring.

If you are wondering if this may be the ideal time to sell your home or would just like an updated market analysis of what your home would sell for in today's market, call us today at 425-413-6428 or email us at info@HappyHomeTeam.com

• Last month was the best November on record for pending sales since 2005

• Our inventory levels are the lowest they have been in 5 years
  

• Home sales outpaced new listings for the first time in 5 years

• The rate of home sales in November were on par with the rate of sales last spring during the $8,000 First Time Home Buyer Tax Credit

Northwest Multiple Listing Service members reported 6,103 pending sales during November, marking the seventh straight month of double-digit year-over-year increases.

Last month's total number of mutually accepted offers was 22.4 percent higher than the same month a year ago. It also marked the first month since December 2006 that the number of pending sales surpassed the number of new listings (6,043), prompting discussions of possible inventory shortages.

At month end, there were 30,650 residential listings in the MLS inventory across 21 counties, down nearly 17 percent from a year ago.

Despite the smaller selection, the listings in the MLS database covering all counties span a wide price range: 400 homes are priced at $50,000 or less and 65 residences are listed at $5 million-plus.

For homes and condominiums that sold last month, the median selling price was $225,000, down 10 percent from the year-ago median price of $250,000. Single family home prices were off 8 percent from a year ago ($234,612 versus $255,000), while condo prices slipped more than 17 percent ($169,000 versus $204,500).

Brokers point to distressed properties, which tend to be deeply discounted, as a primary cause of lower prices.

For the four-county Puget Sound region, a check of the Northwest MLS database shows more than one-fourth (26.8 percent) of the single-family homes that sold last month were classified as distressed, up from the year-ago figure of 21.9 percent.

For the MLS market overall (21 counties), the number of closed sales jumped 36.2 percent, rising from 3,583 completed transactions during November 2010 to last month's total of 4,879.

SALES VS. LISTING ACTIVITY - KING COUNTY AUGUST 2010 TO PRESENT

The credit is known as a Mortgage Credit Certificate (MCC) in which the buyer receives a tax credit equal to 20% of the all the interest paid on a home loan for the life of the loan. The Tax Credit is a dollar-for-dollar reduction of the home owner's total federal income tax. The home owner still receives the standard tax deduction for the remaining 80% of mortgage interest.

QUESTION:  How much can a buyer spend on a house and still qualify for the tax credit?
ANSWER :  Up to $475K in King and 395K in Pierce and Snohomish counties.

QUESTION:  Are there any income restrictions?

ANSWER:  Up to $97,000 per year in King and Snohomish Counties and $90,000 in Pierce County with a 3 person family.

QUESTION:  How does my buyer get set up with this credit?
ANSWER :  Contact us to get referred to a Participating lender – the lender must be authorized by Washington State to offer this.

QUESTION:  Is this a loan?
ANSWER :  No this is not a loan it’s a tax credit that is set up separately from the mortgage loan.

QUESTION:  Is there a cost to the buyer to participate?
ANSWER :  Yes - there is a one time fee paid at escrow to Washington State of $650.  Seller, realtor or lender can pay this fee.

For more details and to find out how to apply, contact us today at 425-413-6428 or info@HappyHomeTeam.com

Please join us at our next Home Buyer Class!

Thursday, December 15th - 6:30pm

Located at Bank of America

27103 185th Ave SE

Covington, WA 98042

Here are a few things that we go over at the class:

- How you can own a home for less than what it costs to rent

- What makes up your credit score and what credit score is needed to qualify for a home loan

- What type of financing programs are currently available

- What is the process involved in purchasing home

- Where our real estate market has been and where it is headed from here

Take a look at some of the great deals available in today's market:

Brand new home in Maple Valley for just $1,082 a month!
http://www.happyhometeam.idxco.com/idx/3647/details.php?idxID=041&listingID=250924

Sound view downtown condo with hardwood floors and 10 foot ceilings for only $224k! Nearly $100k less than what it sold for in 2005
http://www.happyhometeam.idxco.com/idx/3647/details.php?idxID=041&listingID=298434

Brand new townhomes in the Issaquah Highlands from the $200's! http://www.happyhometeam.idxco.com/idx/3647/details.php?idxID=041&listingID=216157

Experts are forecasting property values to increase nearly 25% in the Puget Sound by 2013. Read the article here:
http://realestate.msn.com/blogs/listed-valuation.aspx?post=ac96385f-74c6-497f-bf39-38f45ee90d1b&GT1=35012

If you have already bought a home with us, THANK YOU! Please do us a huge favor and forward this on to anyone you think might benefit from this information.

Also, we are basically walking home buyer seminars, so if the timing or location is not convenient for you, please send us a message and we can coordinate something more convenient.

More information at www.BuyerClasses.com

Space is limited. If you would like to guarantee a seat please call 1-888-499-0684 ext. 2008

FREE list of BANK OWNED HOMES

and other Great Buys in our market at:

www.SpeedyHomeFinder.com

Click image to enlarge

If you are curious about how you can best take advantage of today's historic interest rates by buying a home, investment property or refinancing your current mortgage, give us a call today at 206 372 0218 or email info@HappyHomeTeam.com

$145,000

2 Bedroom Townhome

2 Bathrooms

1,149 Sqft

5814 S 234th St, Kent WA

View the full details on this property here.

Very well maintained home in desirable, close-in location. This top floor, end unit with attached garage backs to a lush greenbelt and boasts an open floorplan with lots of windows to let natural light flow in. Light and bright kitchen with breakfast bar includes all appliances. Master suite with large walk-in closet, full bathroom with dual sinks, + greenbelt view. Laundry room with full size washer & dryer. Very clean with new carpets & fresh paint.

Please join us at our next Home Buyer Class!

Thursday, November 10th - 6:30pm

Located at Bank of America

27103 185th Ave SE

Covington, WA 98042

At the class we go over:

- What type of financing programs are currently available
- How to get pre-approved for a loan
- How you can own a home for less than what it costs to rent
- What is the process involved in purchasing home
- Where our real estate market has been and where it is headed from here

Take a look at some of the great deals available in today's market:

2 bedroom condo in Belltown, sold for $429k brand new in 2008, now available for $302k!
http://www.happyhometeam.idxco.com/idx/3647/details.php?idxID=041&listingID=190394

Brand new 3 bedroom home in Maple Valley for just $1,075 a month!
http://www.happyhometeam.idxco.com/idx/3647/details.php?idxID=041&listingID=218180

Experts are forecasting property values to increase nearly 25% in the Puget Sound by 2013. Read the article here:
http://realestate.msn.com/blogs/listed-valuation.aspx?post=ac96385f-74c6-497f-bf39-38f45ee90d1b&GT1=35012

If you have already bought a home with us, THANK YOU! Please do us a huge favor and forward this on to anyone you think might benefit from this information.

Also, we are basically walking home buyer seminars, so if the timing or location is not convenient for you, please send us a message and we can coordinate something more convenient.

More information at www.BuyerClasses.com

Space is limited. If you would like to guarantee a seat please call 1-888-499-0684 ext. 2008

FREE list of BANK OWNED HOMES

and other Great Buys in our market at:

www.SpeedyHomeFinder.com