This past week mortgage rates tied their all time lows with the national average on a 30 year fixed rate reaching 3.94%. Low rates have pushed up first time buyer sales in Back Bay, where the number of properties sold under $500,000 is up 20% from last year. This should come as no surprise given the dramatic rise in rental prices in the neighborhood over the past year. More and more people are starting to realize that owning in the city can be cheaper than renting especially during a housing market like this. The numbers are also helped by parents of young professionals, who are in some cases, providing the down payment for the children to purchase that first home.

If you are interested in buying a home for the first time or have questions about buying your first home contact us and we’ll be happy to walk you through the process and answer all of your questions.

More and more parents are helping their kids buy their first home. Wealthy boomer parents with cash, are using the money to provide a down payment for their child’s first home instead of  putting the money into the stock market. Many of these parents, are hoping to help their children take advantage of the low-interest rates and in some areas of the country, depressed real estate prices.

This national trend can be seen around Boston as some parents look at the high cost of rent as a fruitless expense and would much rather see their children put the money towards the purchase of a home. The gift of a down payment makes it entirely possible for a child to be able to make the monthly payments while they build up equity in a property they actually own.

For more information on gifting a down payment to your child contact Pat Tobin at MetLife. If you’re interested in discussing options for your child give us a call at 617-449-3642.

There are only 51 days left until the First Time Home Buyer Tax Credit runs out. The extended tax credit deadline means you have to have your P&S signed by April 30th. So far out of top 7 Boston neighborhoods 190 condos have been sold under $500k (a typical threshold for first time buyers). If you’re interested in taking advantage of this tax credit before time runs call me this week to get started! 617-449-3642

The First Time Home Buyer  Tax Credit was officially extended today. President Obama signed the bill into law, creating an extension and expansion of the credit for new home owners. The extension covers first time buyers who purchase by April 30th 2010 and must close by June. This gives those of who you have been sitting on the sidelines for the past few weeks plenty of reason to get back into the game again. You will still get the same $8,000 that you would have if you had bought earlier.

As for the expansion part, the credit is now being expanded to anyone who has owned their own home for the past 5 years and wants to buy something new. For these people the credit will only go up to $6500 but it’s still a great incentive. There are of course income limitations with both of these credits but they have been raised above what they previously were at. For more information on the tax credit or if you’re interested in purchasing a new home, please don’t hesitate to call us at 617-449-3642 or search our website.