QE2 stands for Quantitative Easing – Round 2.

The ultimate goal of QE2 is to pump more money into our financial system to avoid deflation, and right now what is the main focus in avoiding deflation……home sales. Specifically, QE2 is aimed at moving the existing surplus of vacant homes sitting on the market. The Fed (Federal Reserve) is currently easing the actual home mortgage interest rate by buying it down to a historically all time low. For example, at the end of 2010 we were seeing rates in the 4% range, more recently we have seen a slight increase into the 5% range. Although this is an increase, it is still a record low for the mortgage industry.

In short, what does this mean for home mortgage rates after June 2011? Well, with Federal easing out of the picture it means that rates will increase. In fact, as we approach the June 2011 QE2 removal date, the market is preparing for the change and interest rates have already started a slow ascent.

So if you have been planning on investing in a new home, perhaps investing in your very first home; the time to act is now. With mortgage interest rates still in the 5% range for qualified buyers, financing your new home will not be cheaper than now.

If you would like to talk with a professional about buying a home, I would be honored to answer any questions you may have and help you take advantage of this great Buyer’s Market that we are in. You can reach me at homes@kutterandsmith.com

For more interesting articles on QE2 and the future of mortgage interest rates here are some links that you may enjoy:

Article 1

Article 2

Article 3

Article 4

The bill essentially remains intact but has a handful of important changes:

If you are interested in learning more about the new tax credit or about homes in your area, speak with Ryan or Tiffany at the Kutter & Smith Real Estate Team soon.  homes@kutterandsmith.com

The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources.  You should not treat any opinion expressed on This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion.  Keller Williams Realty, Inc. does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind.  All information presented herein is intended and should be used for educational purposes only.  Nothing herein should be construed as investment advice.  You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.  All investments involve some degree of risk.  Keller Williams Realty, Inc. will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.

To take the Energy-Saving Tour click on the image below.

Make windows work for you

• On sunny days, open draperies and blinds to let in the sun’s warmth. During the summer, draw drapes and blinds to prevent solar heat gain.
• Close draperies and blinds at night to insulate against cold air outside.
• If you have storm windows, be sure they are installed during heating season.

Turn down your thermostat

The easiest and most economical way to cut energy costs is to adjust your thermostat.

• Set thermostats between 65° and 70° during the winter, and to 58° when away from the house for four or more hours. For homes with elderly people or children, warmer temperatures are recommended.
• For greater temperature control, use a programmable or setback thermostat.

Keep warm in winter

• Close vents and doors in unused rooms.
• Keep hot and cold air registers free of dust and do not block with carpet or furniture.

Turning down water heater setting

The water heater accounts for approximately 15% of the average household’s energy use. Using it wisely can save you money.

• To lower energy cost without sacrificing comfort, set water heater temperature to 120°.

Showerheads/faucets

• Install water-flow restrictors in showerheads and faucets.
• Repair leaky faucets. A leak that fills a coffee cup in 10 minutes wastes 3,280 gallons of water a year.

Washer/dryer

• Run washing machines and clothes dryers with full loads only.
• Replace old, outdated appliances with high efficiency models.

Stop drafts and air leaks with caulking and weatherstripping

By adding insulation and sealing air leaks, you can have a significant impact on your energy bills.

• Guard against heat loss by sealing leaks around doors, windows and other openings such as pipes and ducts.
• After you have caulked and sealed bypasses, adding insulation can help you reduce energy use and save on future fuel bills.
• Be sure attics have recommended levels of insulation. Contact your local insulation company to come check your insulation.

Maintain your heating system

70-80% of a typical home’s natural gas use is for heating and cooling. Use your energy dollars wisely with these tips:

• Change or clean furnace filters once a month during heating season.
• Have your furnace or boiler tuned by a qualified technician once a year to help improve your system’s operating efficiency and help prevent breakdowns.
• If you have an old heating system, consider replacing it with a high efficiency system. The more of an efficiency upgrade you make, the more energy savings you will see on your heating bills.

For more information about saving energy at home, visit the Texas State Energy Conservation Office.

Thank you to CenterPoint Energy for these very helpful energy saving tips.

The index hasn’t seen five months of consecutive increases since 2003, providing further confirmation that the real estate market is stabilizing, slashing excess overhang, and preparing for reco..[read more]