Is It Time To Finance For That First Home?
The stock market is up, unemployment is down, so the economy is doing great right? Well not quite. The housing market is still depressed which lead many analysts to believe that the Federal Reserve will once again lower interest rates after this weekend’s meetings even though they already lowered rates earlier this month.Â
While this might lead you to believe that it’s a buyer’s market many experts are still predicting doom and think that housing prices will continue to fall for the foreseeable future. Signs that point to this are the increasing supply of new homes from new home builders, as well as an upward surge in distressed properties on the market, as foreclosure rates have soared recently. They argue that it will be cheaper to rent than to own for some time to come and that you’re better off investing those savings in the stock market.  They also predict banks will tighten their lending standards in the wake of these increased foreclosures.
So does this leave you discouraged at ever getting into that new home? Well don’t be, despite all these facts, it still is the best opportunity people have had in years to realize their dream of owning property.   There are many tax credits available to first time home buyers and with the increased supply of homes on the market there are many good deals out there if you do careful research.Â
If the rest of the economy continues to heat up don’t expect interest rates to continue to fall. This golden opportunity won’t last forever. If you have a steady income and a good credit rating don’t be afraid to jump into the housing market because as long as you’re not looking to make a fast buck, the real estate market remains a great long term investment.
