There are homebuyers who have been able to take advantage of discounted homes that have faced foreclosure and, as a result, gain an affordable monthly mortgage payment on a low-cost home. Many feel that the current housing market can provide excellent homeownership opportunities for individuals due to the fact that foreclosures have been a problem for many, which have lower home prices and have caused banks to offer homes at a discount in some areas. Coupled with the fact that low mortgage rates are currently in place on certain home loans, it’s believed that homebuyers have excellent opportunities to get low-cost homes and affordable mortgage options.
Yet, there are reports that indicate home sales have been flat according to August data, and this has many concerned over this lack of buying. It’s been stated that the supply of homes is at a low level, which could account for low home sales, but again, many analysts believe that potential homeowners are missing opportunities for affordable homes for alternative reasons.
While some current homeowners have been using home loan refinancing as a way to take advantage of low mortgage interest rates and lower their overall home loan costs, or simply get a lower monthly mortgage payment, there is concern that economic and employment problems remain a major factor.
Home sales jumped when the first-time homebuyer tax credit was offered, as many homeowners stood to recoup some of the closing costs on a sale, but there is a consensus that even with low home prices, affordable mortgage interest rates, and discounts on foreclosed homes, potential homebuyers are either unable to afford a mortgage or are still concerned over their personal financial stability.
These reasons for stagnant home buying seem more likely as, again, foreclosed homes have been offered at discounted prices, low mortgage interest rates are available, and buying opportunities are still widely available.