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.

Nobody will argue that 2009 was not the best year in real estate. Many agents struggled through the year and welcomed the new year with some hope that it would bring about a swift recovery for the market. The sad news it that the housing market recovery is looking to be anything but quick.

Many had high hopes after a report that the tax credit program for first-time home buyers had helped the sale of existing homes to see a nice increase. The credit was supposed to expire in November but has been extended into April. That does lead to some hope that it will continue to help the market recover. On the flip side there is a lot of talk about the high number of foreclosures that have been forecasted for the next couple years. The jury is still out about whether 2010 will see the market rebound or if it will be another year of just trying to get by.

There are several things that we will need if we expect the housing market to have a good recovery. These things include:

- A lower unemployment rate
- A lower number of foreclosures
- More available and affordable credit

There really has to be a change in the overall economy in order to get the housing market back in shape. Can that happen in 2010? That remains to be seen. Right now it is just too soon to make any solid predictions.