Freddie Mac released the results of its Primary Mortgage Market Survey in which the long term mortgage rates dropped for the second week in a row…….Frank Nothaft, its Vice President and chief economist says, "While we still expect mortgage rates to rise to perhaps as high as 6.50 percent by the end of the year, that escalation in rates will be gradual and restrained."

In Realty Times' never-ending quest to protect the consumer, our website features columnist Broderick Perkins tackling his favorite subject -- appraisal fraud. He has two articles that spell out the extent of appraisal fraud and what you can do to avoid it. Be sure to read Appraisal Fraud Likely Greater Than Reported and Appraisal Fraud Remains Hot Topic.

Realty Times' columnist David Reed, author of Mortgages 101, has a five-part series on how to get the best interest rate on your mortgage. If you are planning on buying a home in the near future, you will not want to miss this series.

According to the National Association of Realtors, home sales are expected to soften to a better balance this year, with price gains slowing but remaining above historic norms. David Lereah, NAR's chief economist, said the supply of homes remains tight. "The simple fact is we still have more buyers than sellers in most of the country," he said. "This supply-demand imbalance is continuing to put pressure on home prices, but we should get closer to equilibrium by the end of the year."

Realty Times' Market Conditions Reports

In Hermosa Beach, California, home prices are rapidly appreciating and there are no signs of slowing down, according to our local real estate experts. With many buyers wanting to live in the Hermosa Beach area, there are very few homes available and they have been seeing home prices appreciating very quickly. Over the last two months, 33 homes sold with an average price of $770,000 which was a 30 percent increase from the same time last year. Also, this year's homes sold for 99 percent of their listing price compared to last year's 97 percent. Multiple offers are back, especially on property within walking distance to the beach. It's a great time to sell!

Moving over to Sun City, Arizona, according to our expert Realtors, the tight inventory continues to be a worry for some buyers, but sales continue to set new highs. The lack of inventory has driven demand and prices higher. Relocation of out-of-state buyers and low interest rates are a factor. Compared to figures a year ago, the Sun City resale market increased from 125 to 160 sales, with the median sales price rising from $124,000 to $159,000. Our Realtors there tell us that there may never be a better time to buy, than right now!

We checked in with our local Realtor experts in St. Simons Island, Georgia, and they told us that sales this year are still a little slow, although prices are slightly higher in most areas of the island. Condos are still a hot item on St. Simons, but the average sale price is dropping due to the additional inventory of units under $200,000, which are attracting more buyers. There are still new developments in the works, featuring single family homes and condos. Rates are still lower than most of us have seen in a lifetime, and lenders are offering some pretty good programs to go with the low rates. Our Realtor experts tell us that if you have been waiting for the right time to own a piece of St Simons, maybe this is it!

This week, Realty Times TV viewers asked:

Jimmy from Detroit asks: Is a seller required to pay for a property inspection? I already did a separate pest inspection, but my brokers wants me to also pay for a home inspection. Isn't this an expense for the buyer?

Answer: A professional home inspection and a termite inspection are different. One is not a substitute for the other.

You could have a contract where the seller, as a condition of the transaction, agrees to pay for a home inspection and a pest inspection by inspectors named by the purchaser. However, in the usual case, such inspections are underwritten by the purchaser and for a good reason, to assure that the inspectors are absolutely independent of the owner.

Jan from New Orleans asks: My husband and I are joint tenants in our house. I'd like to change it to community property with right of survivorship. Is it easy to do? Does it require a refinance? Must I notify the lender?

Answer: Usually when you change a title, the lender has a right to immediately call the loan because ownership of the property has shifted, which means the lender has more risk. However, when it comes to spouses, the federal Garn-St. Germain Act says that in the case of "a transfer where the spouse or children of the borrower become an owner of the property" the lender cannot enforce a due-on-sale clause.

That said, do you even need to change the title? What do state laws say about your rights, given that you are married? For specific advice and paperwork, please contact a local attorney or legal clinic.

Thomas from South Carolina asks: My father has signed a contract to sell his farm and now he says he will not sell. He is 80 years old and there is a question if he is competent or not. How is competence determined, and could that make a difference in the contract?

Answer: One must have "capacity" to enter into a contract. A reasoned belief that a seller lacks capacity could cloud a title for decades, thus a possible buyer also wants a clear resolution to this issue. If you believe your father lacks full capacity, that he may be senile (non compos mentis), then you'll need to see what the legal requirements are in your state to first show incapacity, and then to establish guardianship. You'll need an attorney and statements from one or more physicians.

This is a difficult and profoundly emotional matter for all concerned. An attorney who specializes in elder law may be especially helpful.