Many people worry that the economy is still not on solid ground and homeowners are still at risk for cuts in their hours or wages at their place of employment, which has been a driving factor in home defaults over the last few months. However, some are wondering if the first-time homebuyer tax credit, coupled with the low interest rates we have currently, will produce a more stable housing economy.
Homes are sitting empty and many sellers are looking to be rid of those properties, so there are great deals to be had on homes. Also, the Federal Reserve has stated they are going to keep interest rates low for the present time and mortgage rates have hit record lows in the past few months anyway, so the $8,000 first-time homebuyer tax credit, along with the aforementioned factors, is making home ownership more affordable than in the past.
Many worry about homeowners defaulting on homes and the housing market taking a tumble again, but the main problem with homeowners who are defaulting is their loss of a job or a cut in their income along with a mortgage payment that is well above what is being currently offered.
Homeowners looking to refinance or modify their home loan are still struggling, but homebuyers who are finding low-cost homes, getting a low mortgage rate and a tax credit are seemingly ahead of the pack from the start.
It has even been reported that these offers for first-time homebuyers are making owning a home more affordable than renting in some cases, so if you have been considering the move into homeownership then now may be one of the best times to do so.
