Although there are many challenges in both buying and selling luxury real estate in today's economy, the luxury real estate market in Reno has been steady for most of 2010.

I have been working on our year-end reports for Montreux real estate and luxury real estate in Reno. (I will post this report soon). Despite the slow economy, we have made some home sales for our buyer and seller clients.

Here's a couple tips for both buyers and sellers of luxury real estate.

For Buyers:
Now is one of the best times in history to purchase the home of your dreams. Interest rates are still historically low, with the average long-term fixed-rate mortgage rates below 5%. Home prices remain low, and available homes on the market remain high.

Another important point to make for potential buyers is to find your comfort zone. How much do you plan to spend on your monthly mortgage? This decision should be part of your long-term financial picture.

What is the goal for buying a home? Are you looking to escape the high taxes of California? Do you want to live in a private golf community like Montreux? Now is the best time.

For Sellers:
If you are selling your home, and are worried about selling in a "buyer's market," there is some good news. If you get a lower selling profit when you sell your home, you may be able to offset a lower purchase price on your next home.

Whatever your reason for buying or selling luxury real estate in Reno Nevada, make sure to consult with a real estate agent that has a proven record, and past client testimonials and referrals.

If you are looking to purchase luxury real estate in Montreux, Reno, or Lake Tahoe I can help you find that great home! Please take a moment and fill out my contact form, or call me today: 775-813-4890.

Standard 30-year fixed loan is now 4.95 percent, down from 4.97 percent

Mortgage rates held below the 5 percent threshold for the second straight week, a report said Thursday, weeks before a government program that has been keeping rates low is scheduled to expire.

The average rate on a 30-year fixed rate mortgage was 4.95 percent this week, down from 4.97 percent a week earlier, mortgage finance company Freddie Mac said.

Rates dropped to a record low of 4.71 percent in December and have hovered around 5 percent since, kept down by a Federal Reserve campaign to stabilize the housing market by lowering mortgage rates.

The central bank's $1.25 trillion program to buy up mortgage securities issued by Freddie Mac and sibling company Fannie Mae is set to expire March 31. But the Fed has held the door open to extending the program if the economy weakens.

Some analysts argue that rates could rise once the Fed's program ends, hurting both the recovery in housing and the overall economy. But government officials are optimistic that the Fed will be able to end its program without a major disruption.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day, often in line with long-term Treasury bonds.

This week, the average rate on a 15-year fixed-rate mortgage was 4.32 percent, down from 4.33 percent last week, according to Freddie Mac.

Rates on five-year, adjustable-rate mortgages averaged 4.05 percent, down from 4.11 percent a week earlier. Rates on one-year, adjustable-rate mortgages fell to 4.22 percent from 4.27 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount.

The nationwide fee for loans in Freddie Mac's survey averaged 0.7 of a point for 30-year and 15-year loans and 0.6 of a point for five-year and one-year loans.

Average 30-year fixed mortgage at 4.97, down from 5.01

As of Thursday, the 30 year Mortgage rate dropped now lower than 5 percent, according to Freddie Mac.

One year ago, the rate for a 30-year fixed mortgage averaged 5.16 percent, Freddie Mac said. The average rate on a 30-year fixed mortgage was 4.97 percent this week, down from an average of 5.01 percent last week.

December rates were a record low at 4.71 percent. The rate has hovered in the 5 percent range, many giving credit to the Federal Reserve’s program that has put $1.25 trillion into mortgage-backed securities. These efforts have kept rates low and have made home buying, ideally, more affordable. As of March 31st, this program is set to come to an end.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day, often in line with long-term Treasury bonds.

The average rate on 15-year fixed-rate mortgages fell to 4.34 percent from 4.40 percent last week, according to Freddie Mac.

Rates on five-year, adjustable-rate mortgages averaged 4.19 percent, down from 4.27 percent a week earlier. Rates on one-year, adjustable-rate mortgages rose to 4.33 percent from 4.22 percent.

The rates do not include add-on fees known as points. The nationwide fee for loans in Freddie Mac's survey averaged 0.7 point for 30 year mortgage. It averaged 0.6 point for 15-year, five-year and one-year loans.

These positive financing numbers also lead to an increase in refinancing activity. Upwards of 60% of all mortgage activity are home owners looking to take advantage of refinancing at more attractive rates.

Mortgage applications rose a seasonally adjusted 14.3% last week as interest rates on fixed-rate mortgages fell, the Mortgage Bankers Association said Wednesday.

Refinancing applications jumped 21.8% in the week ended Jan. 8 compared with the week before, which was shortened for the New Year's holiday. Applications for mortgages to purchase homes rose a seasonally adjusted 0.8% on a week-to-week basis.

The Washington-based MBA's survey covers about half of all U.S. retail residential mortgage applications. The pace of filings picked up after having slowed over the holidays.

The MBA's four-week moving average for all mortgages for the period through Jan. 8 was down 6.4% on a seasonally adjusted basis.

Refinancings made up 71.5% of applications last week, up from 68.2% the previous week. Adjustable-rate mortgages accounted for 4% of applications filed, unchanged from the last week of December.

Meanwhile, rates on 30-year fixed-rate mortgages averaged 5.13%, down from 5.18% the previous week.

Fifteen-year fixed-rate mortgages averaged 4.45%, down from 4.62%, but one-year ARMs averaged 6.83% last week, up from 6.42% the previous week.

To obtain the rates, the 30-year fixed-rate mortgage required payment of an average 1.17 points, the 15-year fixed-rate mortgage required an average 1.04 points, and the one-year ARM required an average 0.31 point. A point is 1% of the mortgage amount, charged as prepaid interest.

Average rates for 30-year and 15-year fixed mortgages fell for the fifth consecutive week, reaching all-time lows, Freddie Mac's chief economist said on Thursday.

"In addition, interest rates on 30-year and 15-year fixed mortgages thus far in 2009 averaged one percentage point below their respective average in 2008," said Frank Nothaft, Freddie Mac chief economist, in a news release.

The 30-year fixed-rate mortgage averaged 4.71% for the week ending Dec. 3 -- the lowest it has been since Freddie Mac began its weekly survey in 1971. The mortgage is down from 4.78% last week and 5.53% a year ago.

Fifteen-year fixed-rate mortgages averaged 4.27% this week, a low since Freddie Mac began tracking it in 1991. The mortgage averaged 4.29% last week and 5.77% a year ago.

One-year Treasury-indexed adjustable-rate mortgages averaged 4.25% this week; they haven't been lower since the week ending June 30, 2005, when they averaged 4.24%. The ARM averaged 4.35% last week and 5.02% a year ago.

But the 5-year Treasury-indexed hybrid ARM rose slightly, averaging 4.19% this week, up from 4.18% last week. It averaged 5.77% a year ago.

To obtain the rates, the 30-year fixed-rate mortgage required payment of an average 0.7 point and the 15-year fixed-rate mortgage as well as both ARMs required payment of an average 0.6 point.

"Low mortgage rates and the cumulative decline in house prices have contributed to an extremely affordable housing market and helped spur home sales this year," Nothaft said.

"For instance, total new and existing home sales in October were 36% higher than their January low on a seasonally adjusted, annualized rate, according to the U.S. Census Bureau and the National Association of Realtors. The NAR also reported that pending existing home sales rose for the ninth straight month in October, representing the longest consecutive gain since the series began in 2001."

In a separate survey released on Wednesday, the Mortgage Bankers Association reported that mortgage applications filed for the week ending Nov. 27 rose a seasonally adjusted 2.1%, compared with the week before.

Rates on 30-year fixed-rate mortgages dropped to their lowest levels since May, Freddie Mac reported on Thursday.

The 30-year fixed-rate mortgage averaged 4.83% for the week ending Nov. 19, down from last week's 4.91% average, according to Freddie Mac's weekly survey of conforming mortgage rates. The mortgage averaged 6.04% a year ago.

Fifteen-year fixed-rate mortgages also dropped, averaging 4.32% this week, down from 4.36% last week and 5.73% a year ago.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.25% this week, down from 4.29% last week and 5.87% a year ago. And one-year Treasury-indexed ARMs averaged 4.35%, down from 4.46% last week and 5.29% a year ago.

To obtain the rates, the 30-year fixed-rate mortgage required payment of an average 0.7 point, while the 15-year fixed-rate mortgage as well as the ARMs required payment of an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.

"Interest rates on 30-year fixed-rate mortgage loans fell for the third consecutive week to the lowest since the week ending May 21, while 15-year fixed rates were the lowest since our records began in 1991," said Frank Nothaft, Freddie Mac vice president and chief economist, in a news release.

"Low fixed rates throughout the third quarter prompted an estimated $1.1 trillion in refinancing activity, saving homeowners about $10 billion in aggregate monthly payments over the first 12 months of their new loan. Moreover, for the fourth consecutive quarter, more than 95% of prime borrowers who originally had an ARM selected a conventional fixed-rate mortgage in the third quarter of this year," he said.

Average rates on 30-year fixed-rate mortgages fell below 5% this week -- the first time since the end of May, according to Freddie Mac's weekly survey of conforming mortgage rates, released on Thursday.

The 30-year fixed-rate mortgage averaged 4.94% for the week ending Oct. 1, down from 5.04% last week and 6.10% a year ago. The mortgage hasn't been below 5% since the week ending May 28, when it averaged 4.91%.

The 15-year fixed-rate mortgage averaged 4.36% this week, down from last week's 4.46% average. The mortgage averaged 5.78% a year ago. It hasn't been lower since Freddie Mac started tracking it in 1991.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.42%, down from 4.51% last week and 6% a year ago. And 1-year Treasury-indexed ARMs averaged 4.49%, down from 4.52% last week and 5.12% a year ago.

To obtain the rates, the 30-year fixed-rate mortgage required payment of an average 0.7 point, the 15-year fixed-rate mortgage and the 5-year ARM required an average 0.6 point and the 1-year ARM required an average 0.5 point. A point is 1% of the mortgage amount, charged as prepaid interest.

"Low mortgage rates are helping to stabilize home sales," said Frank Nothaft, Freddie Mac vice president and chief economist, in a news release. "New home sales in August rose to the highest annualized pace since September 2008 and the inventory of unsold houses fell to the lowest level since February 1983."

Mortgage rates held their three-month lows this week, with the 30-year fixed-rate mortgage averaging 5.04%, unchanged from last week, according to Freddie Mac's weekly survey of conforming mortgage rates.

The 30-year fixed-rate mortgage averaged 6.09% a year ago.

The 15-year fixed-rate mortgage averaged 4.46% -- the lowest it has been since Freddie Mac started tracking it in 1991 -- for the week ending Sept. 24, down slightly from its 4.47% average last week. The mortgage averaged 5.77% a year ago.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.51%, unchanged from last week. The ARM averaged 6.02% a year ago.

And the 1-year Treasury-indexed ARM averaged 4.52%, down from 4.58% last week. The ARM averaged 5.03% a year ago.

To obtain the rates, the fixed-rate mortgages and the 1-year ARM required payment of an average 0.6 point, while the 5-year ARM required an average 0.5 point. A point is 1% of the mortgage amount, charged as prepaid interest.

"Mortgage rates held relatively steady at three-month lows this week," said Frank Nothaft, Freddie Mac vice president and chief economist, in a news release. "Correspondingly, the Mortgage Bankers Association reported that mortgage applications jumped 12.8% over the week of Sept. 18 to the strongest pace since late May, boosted by refinancing activity."