New homebuyer opportunities that have brought about low costs on home loans have many analysts of the opinion that with low home sales and interest rates on home loans, individuals who are looking to enter the housing market for the first time or purchase a new home are in a position now to take advantage of affordable opportunities, but there have been reports which he stated home sales are still quite low despite these potential affordable home loan options.
Essentially, there are some commentators who feel that as home prices and property values have decreased, which has created problems in the lives of many homeowners, homes that are sitting empty as a result of devaluation and foreclosure may offer affordability to new homebuyers as, again, interest rates on mortgages have remained relatively low despite rising from last year’s record-low rates. Obviously, a new homebuyer who could qualify for one of these low rates could essentially find a home that costs a substantial amount less than in previous months, or since last year, which again, has offered more affordable home buying options.
However, when it comes to new home sales CNNMoney.com reports, “The total number of new homes sold in January was a seasonally adjusted 284,000, down from 325,000 in December,” which is obviously a letdown for some developers and homebuilders who are having to compete with a market many deem to be flooded with foreclosed homes as predictions have stated around one-fourth of homes sold in the last year were foreclosures.
It’s understandable that new home sales may have dropped dramatically as a result of foreclosures, yet, even mortgage applications have also been down. According to the Mortgage Bankers Association, mortgage applications decreased 6.5% from a week earlier according to data for the week ending February 25, 2001.
For a potential homeowners who may be looking for a deal on a new property, there are those who feel that these low interest rates may not be around for much longer as there are some who predict rates to increase in 2011, but currently, homebuyers who may either be looking to purchase a new home or a home that may have been in foreclosure could find a great deal of affordability in not only the principle they must pay for their mortgage, but the rate which they may gain on their home loan.
Understandably, not all homeowners are in a position to take advantage of low home costs and affordable interest rates that are currently available, but arguments are still being made that homebuyers can use the current housing market to find a low-cost homes and have a mortgage payment attached to this property that can also be quite affordable thanks to low rates that are still present.