Why Autumn is Going to Be Awesome

This fall could be a particularly sweet time for first-time buyers or even buyers long out of the market to jump in (and fall in love again)?

Here are the reasons why:

• Prices are probably as low as they are going to go as the market stabilizes, thanks to the government takeover of Freddie Mac and Fannie Mae. (This is seriously a big deal).

• Interest rates are likely to decline as Freddie and Fannie get government help. The rate for a conforming 30-year fixed mortgage already fell to 5.88 percent Monday from 6.26 percent a week ago, according to BankRate.com.

• The Federal Housing Administration temporarily boosted its loan limits to $729,750 in expensive areas. However, the loan limit will revert back to $625,500 in about three months, when the FHA will make it permanent in 2009.

The FHA allows down payments of as little as 3 percent, but that will rise to 3.5 percent on Oct. 1, 2008. People scraping dollars together for a down payment should try to set their closing for the end of this month.

• The tax credit will shave $7,500 off a first-time buyer’s federal tax bill due April 15. Buyers who don't owe tax, will get the money as a refund. (The government's definition of a first-time buyer is anyone who hasn’t owned a home in the last three years.)