The last two years have been rough on housing in a chain reaction-kind of way.

First, mortgage guidelines tightened, preventing some homeowners from ditching onerous ARM products.  That sparked a foreclosure boom that led to large losses on Wall Street.  In turn, it sank the U.S. economy.

Today, as compared to 3 years ago, foreclosures are way up, home values are way down, and mortgage rates are as low as they've ever been. It's wonderful news for home buyers -- there's a plentiful supply of homes and financing is cheap. Home affordability is near all-time highs.

But the market is changing.

Massive, sustained government stimulus has helped reverse the economy's slide.  There's still some rough patches, but overall, prospects look bright for 2010.

In housing, we can already see the improvement:

• The supply of new homes is down 40 percent this year
• The number of existing home sales are soaring in Cincinnati and other markets
• Pending home sales are as high as they've been since 2006

Furthermore, home prices are on the rise in the majority of U.S. markets.

The Buyers Market is over, folks. If you bought a home in February 2009, pat yourself on the back -- you timed the market bottom perfectly.  Both home prices and mortgage rates were troughing that month.  Since then, however, it's been a steady erosion and home seller are psyched about it.

For today's home buyers, mortgage rates remain low and home prices have a lot farther to climb.  Homebuying conditions may not be as perfect as they were 9 months, but, as compared to what we'll see next year, they're pretty excellent.  Especially because mortgage rates will cross 6 percent soon.

You can't lock a mortgage rate before you've found a home, but you can get prequalified and fast-tracked for one. Call or for a rate quote and help with your homebuying.  I answer all of my own emails and my rates are very, very good.

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.