According to Freddie Mac the numbers for the start of 2010 are down from 2009. Rates on a 30 year fixed rate mortgage for January 7th were at 5.09%, which were down from the previous week when they were 5.14%. However, looking back at the same time in the beginning of 2009 the rates were at 5.01%. So what is this telling us?

The numbers do not really tell us much, but when we look at why rates are changing the way they are we can get an idea. The opinion is that the economy is starting to rebound. That is prompting the Federal Reserve to raise the overnight target rate. This usually causes a rise in ARM rates. The good news is that any major changes from the Fed are not expected until later in the year, so rates may stabilize.

For you, the real estate agent, stable rates can be a great thing. It has truly been a buyers market and sellers have been losing big time. However, if buyers can start to get loans easier and current mortgages can be stabilized at a good rate then chances are that business may start to look up.

Buyers may be able to get more affordable loans. Sellers may be able to refinance and stop foreclosures or short sales. In the end, the hope is always that the market will start looking up. We need to hope that rates will go lower and stay lower, lenders will be lending and properties will start moving again at a good pace.

2010 may just bring a great chance for the market to rebound and for this slump to finally be over.