Home Buying Opportunities From Affordable Home Loans–Mortgage Applications Rise In January 2011

There are numerous analysts who feel that home buying opportunities in 2011 are still uncertain as factors like the housing market and employment are areas of concern when it comes to homeowners finding affordability in a home loan, the future of mortgage interest rates, and the opportunity for homebuyers to take advantage of current conditions in the housing market. However, there have been reports which indicate, in the beginning parts of January 2011, there was an increase in the number of mortgage applications, which could be due in part to factors like low rates or low home loan prices.

According to the Mortgage Bankers Association, mortgage loan application volumes increased 5%, as of January 14, which could be a positive sign that more homebuyers are feeling confident in either their financial ability to afford a home or believe that the housing market is at a point where affordable homes may be acquired, which can be beneficial to the housing market in general as there are numerous foreclosed homes simply sitting empty.

Home loan rates may be one of the reasons why homebuyers have begun applying for a mortgage due to the fact that, despite movements, mortgage interest rates have stayed relatively low over the past months. Low interest rates and low home prices have created a market where there are excellent offers which may be taken advantage of by buyers, yet there is still hesitation on the part of some.

Throughout 2010 homeowners began refinancing and entering into the housing market thanks to assistance from the first-time homebuyer tax credit, but there were also low interest rates available that allow some homeowners to either refinance for a lower mortgage payment or a shorter-term mortgage, which will allow them to erase their mortgage debt faster. Cost, obviously, is a main concern for many homebuyers and homeowners as certain types of mortgages, like adjustable-rate mortgages, led to difficulties in terms of mortgage payment obligations for some homeowners and, as a result, led to many refinancing to a fixed-rate in the hopes of finding stability and affordability in their home loan.

Yet, despite the fact there are analysts who feel the housing industry is still on somewhat shaky grounds, there are those who believe that homebuyer confidence is beginning to return.  Conversely, there are reports which state that in 2011 home values may continue to fall, foreclosures may increase, and rates may rise, but there are analysts who have reported some Americans feel it’s a good time to buy a home.

Obviously, there are those who would disagree as, again, home prices are predicted to drop in some areas and take years to recover in others.  However, there are homebuyers who believe that with interest rates as low as they are and home prices being at or near the bottom, finding an affordable home can be an option.  Yet, advisers have also cautioned homebuyers to do their homework before walking into the housing market, as buyers need to look at not only their personal financial situation and job security, but forecasts for home values in the area they wish to buy.  While it is true some buyers have gotten a low mortgage rate on a low-priced home, this is obviously not a guarantee for all homeowners nor will it be in every potential homeowner’s best interest to buy a home.