Mortgage Market Remains Slow
The numbers are in, and December new home sales fell 14.7 percent. Indeed, this is an indicator that times really are quite tough in the housing and mortgage market. After all, it is very difficult to buy a home when you don’t have a job — or are afraid of losing your job. With unemployment rising, it is no surprise that many markets are seeing problems with home sales.
Good news for those who are looking to buy a home
Even though the mortgage market and the housing market are both in such poor shape, it doesn’t mean that things are all bad. In fact, there are some great home buying opportunities right now. First of all, the dismal mortgage market means that interest rates are falling again. Between promises from the Federal Reserve, passage in the House of an economic stimulus bill and the failing mortgage market, interest rates are quite low. CNN Money reports on mortgage interest rates this week:
The average 30-year fixed mortgage rate fell to 5.48% from 5.59% for the week ended Jan. 28, according Bankrate.com.
The average 15-year fixed rate mortgage slipped to 5.10% from 5.2% and the average jumbo 30-year fixed rate dropped to 7.06% from 7.22%.
Another opportunity provided by the housing market is good prices on homes. With the slow housing market, many buyers are more willing to negotiate. You can get a better deal in some areas in addition to a low interest rate. The key is not to view your home as an investment so much as a purchase that you hope to enjoy for years to come. The housing bubble had many people thinking of their homes as investments, but in reality — especially when figure how much interest you pay — it’s just a big purchase. And right now, it is possible to get this purchase for a bargain.
