For nine weeks in a row, mortgage interest rates have slipped, creating land office business at real estate brokerages and the buzz is May will be another record-setting month.

Frank Nothaft, Freddie Mac's vice president and chief economist said, "It is remarkable how mortgage rates have remained so low for so long, but as long as inflation is held in check, there is little or no pressure to push mortgage rates higher. And at the moment, despite high fuel prices, there is little or no inflation."

He predicts that continuing low rates will keep the housing industry abuzz. "As a matter of fact, both new and existing housing sales figures in April are expected to come in at or near record levels," he says.

That’s certainly good news for the industry. More good news for buyers is that several large mortgage companies are preparing programs that radically streamline and simplify the entire mortgage process -- loans that require applicants to pay none of the usual lender fees which includes appraisals, credit reports, document preparation, tax service, underwriting or processing. What is even better is that the rates on these loans are competitive with the mortgages that do carry these fees. Bank of America appears to be the first out of the gate with an actual prototype, but other lenders shouldn't be far behind.

Neilson reports that a record number of buyers are going to the Internet to start their buying process. The report states that while "most homes are still bought or sold via real estate agencies, consumers surfing the Web have more direct and better access to real estate property information than they had previously, arming them with information with which they can make more informed buying or selling decisions."

Jody Lane, president of Realty Times, says, "Informing consumers through Realtors is exactly what our Market Condition Reports are designed to do. We have seen a huge increase in the number of people viewing this information. Realty Times is the leading publication dedicated to helping consumers in their pursuit of home ownership, because we are Realtor-friendly and wholeheartedly believe that it should be Realtors, the local market experts, who deliver market information to consumers."

Realty Times' Market Conditions Reports

Loudoun County, Virginia , is quickly becoming the gem of Northern Virginia. According to our local Realtor experts, this beautiful and historic county has undergone a tremendous transformation over the last ten years. Because demand has far outstripped supply for housing, this county, within easy reach of Washington, DC and the Dulles Tech Corridor, has been exposed to an unbelievably strong seller's market with prices escalating wildly over the last five years.

Due to increased interest in national security and defense spending, local employment levels remain extremely high. This has kept the influx of new residents at a brisk pace keeping demand up. Because there is a constant flow of new homes into the area and many area residents "cashing out," they are now seeing a mild cooling of the market and some slowing of price escalation. Realtors believe that if the current administration remains in place, the government will likely continue to increase the size of Homeland Security based in Northern Virginia, which in turn will continue to fuel Loudouns's housing market.

In Tempe, Arizona , May is proving to be another strong month for the sale of homes. With a lower than average days-on-market time and less inventory, the market is leaning stronger in favor of the seller. Our local Realtor experts tell us that buyers have few homes to choose from and often compete with as many as five to 25 other buyers making offers. Desirable homes are sold as quickly as they hit the market. The list-price-to-sell-price ratio is at or above 98.5 percent, putting the pressure on the buyer to pay at or above the market price. Buyers should be advised that competition is fierce in the Tempe resale market!

Great news for home sellers continues in Thousand Oaks, California . Inventory of homes is declining in most areas and prices are continuing to escalate. There is definitely appreciation, but not what they have seen in the past several years. Realtors tell us that they can see from nine to 13 percent increases in values for 2005. Thousand Oaks is a great community that ranks #1 on the FBI's list of safest cities in America. Don't expect housing costs to ease, as median home prices will reach $680,000 this year. Home prices will increase to the $1 million mark, but the increases will come slower than in recent years. Ventura County's economy will grow about 3.7 percent in 2005.

This Week, Realty Times TV Viewers Asked

John from Florida asks: I live on a golf course. There are 20 expensive custom houses built on the greens. I am trying to get an appraisal of our house. None of the 20 golf houses have ever been sold; all of the owners are original purchasers. However, lower-priced houses not on the golf course have changed hands, and will be used to determine local values. I know that all the houses on the golf course are worth much more than what the appraisal is going to be. What is the solution if I want to be the first to sell?

Answer: You assume that appraisers will not allow extra value for your superior location. In fact, appraisers will undoubtedly give your home a higher valuation precisely because it materially differs from homes not directly on the greens. The question is how much of a differential can you expect? One general clue might be to look at percentage differences in the original sale prices between your home, and those more distant from the course.

Jane from Tulsa asks: My husband and I are building a house that is scheduled to be completed within six months. With the Federal Reserve hiking interest rates, mortgage rates are also expected to go up. Does it make sense to pay for an extended rate lock or just buy points at closing to reduce the interest rate?

Answer: No one knows where mortgage rates will be in six months -- or if your new home will be finished. Many economists and commentators, as an example, believed six months ago that today's rates would be substantially higher, but despite eight consecutive increases in the federal funds rate, interest levels today are actually lower than at the beginning of the year.

In effect, any choice you make has risk. It may be that in six months you can get financing at today's rates without paying dollars up front to buy-down the rate. Or maybe not.

Dennis from Virginia asks: We're in an obviously "hot" market. We recently accepted an offer on our house but the appraisal was $17,500 below the selling price. We just had the house appraised in December and then it was $10,000 more than the current appraisal. What happens now? Isn't there any leeway for appraisers? Just because our neighbors undervalued their properties, is there any way for us not to be penalized by their marketplace weakness?

Answer: The current appraisal is $17,000 below the selling price. The December appraisal was $10,000 more than the current valuation. That means the December appraisal was still $7,000 below the current sale price. In neither case does an appraisal support your sale price.

The problem is this: Lenders make loans on the basis of the sale price or the appraised value, whichever is less. In this situation, you could ask the buyer to put up more cash, ask the lender for a second appraisal, reduce the sale price or arrive at some compromise.

If you need funds for repairs and upgrades after purchase, then consider the FHA 203k rehab loan program. With this loan you receive money to acquire a property plus additional money for repairs. Speak with loan officers for details.