The extremely harsh winter weather in January and February didn’t help pending home sales as it fell sharply to its lowest reading since April 2009 and the National Association of Realtors expects more declines in the future.

NAR’s pending home sales index fell to a seasonally adjusted reading of 90.4 which is 7.6 percent down from December but still 12.3 percent above January 2009’s index reading. The index is considered a forward-looking indicator or gauge of future sales because there is a one to two month lag from the contract signing to sales completion. A reading of 100 is equal to the average level of sales activity in 2001, when the index begun.

“January pending sales, though still higher than one year ago, remain much lower than expected given that a large number of potential buyers are eligible for the expanded home buyer tax credit,” said NAR chief economist Lawrence Yun. “Moreover, the abnormally severe and prolonged winter weather, which affected large regions of the US, hampered shopping activity in February.”

Regionally, the West got the biggest drop in pending sales where pending sales declined 13.2 percent from December. However, the pending sales index is 1.4 percent above its January 2009 reading.

In the Midwest, pending sales dropped 8.9 percent from December but 11.8 percent above same month last year’s level.

In the Northeast, the index declined 8.7 percent but is 20.5 percent above January 2009 reading.

In the South, there was a 2.1 percent decline from December and 18 percent above the same month last year’s level.

“We will see weak near-term sales followed by a likely surge of existing-home sales in April, May and June,” Yun said. “The real question is what happens in the second half of the year. If there is sufficient job creation, housing can become self-sustaining with stable to modestly rising home prices because inventory has been trending downward.”

McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.97 percent with an average 0.7 point for the week ending March 4, 2010, down from last week when it averaged 5.05 percent. Last year at this time, the 30-year FRM averaged 5.15 percent.

The 15-year FRM this week averaged 4.33 percent with an average 0.7 point, down from last week when it averaged 4.40 percent. A year ago at this time, the 15-year FRM averaged 4.72 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.11 percent this week, with an average 0.6 point, down from last week when it averaged 4.16 percent. A year ago, the 5-year ARM averaged 5.08 percent.

The 1-year Treasury-indexed ARM averaged 4.27 percent this week with an average 0.6 point, up from last week when it averaged 4.15 percent. At this time last year, the 1-year ARM averaged 4.86 percent.

(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

"30-year fixed mortgages fell below 5 percent to match levels seen two weeks ago and are helping to maintain affordable home-purchase conditions," said Frank Nothaft, Freddie Mac vice president and chief economist. "In fact, monthly principal and interest mortgage payments for a typical family buying a median-priced home of $163,800 were just $709 in January, the lowest amount since February 1998, according to the National Association of Realtors® . For first-time homebuyers, the fourth quarter of 2009 was the third most affordable quarter since 1981 behind the first and second quarter of 2009.

"The federal tax credit for homebuyers, which expires on April 30th, may make housing even more affordable for some families already in the middle of the home buying process. In fact, the Federal Reserve's March 3rd regional economic review noted that several districts attributed stronger home sales to the homebuyer tax credit."

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

The Mortgage Bankers Association (MBA) has released its Weekly Mortgage Applications Survey for the week ending Feb. 26, 2010. Mortgage loan application volume increased last week for the first time in a month as borrowing rates declined which boosted purchases and refinancing mortgage activities.

The Market Composite Index, a measure of mortgage loan application volume, climbed 14.6 percent on a seasonally adjusted basis compared with the previous week. On an unadjusted basis, the Index increased 15.5 percent compared to a week earlier.

“Mortgage applications rebounded last week, particularly refis, as rates dropped back below 5 percent,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Purchase activity remains subdued, with application volumes remaining within the narrow range seen in the last few months.”

The Refinance Index climbed 17.2 percent and the Purchase Index increased 9 percent after reaching the lowest level in more than 12 years a week earlier.

The four week moving average for the seasonally adjusted Market Index is up 0.4 percent. The four week moving average is down 2.7 percent for the seasonally adjusted Purchase Index, while this average is up 1.8 percent for the Refinance Index.

The average rate on a 30-year fixed loan dropped to 4.95 percent from 5.04 the prior week.

The average rate on a 15-year fixed mortgage fell to 4.27 percent from 4.35 percent. The rate on a one-year adjustable mortgage dropped to 6.77 percent from 6.80 percent.

The share of refinance mortgage increased to 69.1 percent of total applications from 68.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 4.8 percent from 4.7 percent of total applications compared to the week earlier.

The government extended the refinance program giving homeowners another year to refinance. The program intends to help borrowers whose homes have dropped in value.

The Home Affordable Refinance Program of the Obama administration has been extended to June 30, 2011. This was originally set to end on June 10, the Federal Housing Finance Agency said Monday.

The program is administered by Fannie Mae and FreddieMac.

In 2009, it was originally projected to help 4 million refinance mortgages, as loans were purchased guaranteed by Fannie Mae and Freddie Mac.

As time passes so quickly and spring is just around the corner, here arer some valuable tips to improve your home as well as maintain its condition…

Furnace - Replace or clean your furnace filter if needed. This should be checked once a month.

Some filters are reusable and can be washed with a hose. A dirty filter is often cause of increase heating cost and sometimes fire.

Kitchen exhaust hood and air filter - Keep this clean and make sure that it is free of cooking grease as clean filters help a stovetop fire from spreading.

Electrical System - Trip and reset circuit breakers.

Check your electrical system - Look for burns at the main electrical panel which can be caused by loose connections or damaged insulations. Install safety covers to help protect children from electrical shock. Any appliance or tool that gives even the slightest shock should be unplugged and checked by an electrician or repair shop.

Fire extinguishers – check if charged and make sure they are accessible.

Light bulbs and lamps – Follow recommended wattage for light buld and other electrical fixtures.

Air conditioning - as summer will come next to spring, have a professional inspect and maintain your system as recommended by the manufacturer.

Roof and Rain gutters - Check for damage to your roof as well as dried leaves. Make sure they are clear and clean.