Buying a new home is obviously a big decision in the life of any homebuyer but there have been mixed feelings about the housing market at the present time despite the potential options for homebuyers to acquire a property at a low price and with a low interest rate attached, but various reports have still pointed to uncertainty in the housing market when it comes to the purchase of new homes. Obviously, home prices have decreased over the past months, which have been beneficial for some homebuyers as lower home prices coupled with interest rates which are still quite low have allowed for affordability opportunities that have led many to jump into the housing market.
A report on Bloomberg.com stated that the purchase of new homes rose in December as sales increased at the close of 2010, which surpassed expectations by many housing analysts. Again, many feel this increase in existing home purchases for December can be traced back to low home prices and interest rates, but there are some homeowners who still feel that purchasing at the present time may not be the best bet since there are also predictions that home prices may continue to fall in 2011.
Yet, there are some analysts who are of the opinion that home buying is a smart decision despite hesitation by many potential homeowners. Obviously, economic concerns, personal financial worries, and a struggling job market still have many on the fence as to whether purchasing a home at the present time would be beneficial or even a smart idea, as being able to afford a mortgage payment is obviously one of the main concerns that many have when considering purchasing a home.
There are those who do have a stable employment situations currently, but concerns over whether the economy will remain stagnant, home prices will drop further, or there may be some who are unsure about the future of their job and are willing to wait out the present economic condition rather than enter into the housing market despite the fact that some feel affordable homes and mortgage interest rates make home buying a popular choice at the present time.
However, more contradiction comes in the form of mortgage applications as recent reports have indicated that mortgage applications have fallen in late January 2011, which is obviously a change from earlier in the month. While there are some indications that interest rates are slowly rising, they still remain relatively low and can offer affordability options for home buyers, yet again, the draw of a low home price and affordable mortgage interest rate has not been enough to spur some homeowners into the housing market just yet.
On the other hand, for individuals who are ready to buy a home, there have been analysts and commentators who feel that when a homebuyer has the financial stability to meet monthly mortgage payments, current opportunities to purchase an affordable home and acquire a low interest rate are still on the table and could benefit those who are in the correct financial position to buy.