For new homebuyers, there have been arguments that the current housing market has created a situation where home loan options can be much more affordable than in previous years due to a variety of factors which are now present and, again, could offer individuals looking to buy either a new home or a foreclosed property the opportunity to do so at an affordable cost. Property values have decreased over the past months and interest rates have remained relatively low, but there are still different opinions on whether new homebuyers should take advantage of situations that are currently present to acquire a low mortgage payment with an affordable interest rate.
Those who feel that new homeowners may benefit from purchasing a home at the present time believe that changes that may come in the future of the housing market could remove all of these options which are currently present, that again, offer affordable home loan options for new buyers. According to Money-Rates.com, “…the era of super-low mortgage rates may have passed. Analysts expect current mortgage rates and refinance rates will continue to climb through the year to about 5.5 percent.” Obviously, homeowners saw record low rates last year, and when the first-time homebuyer tax credit was available, there were more individuals entering into the housing market because they felt costs associated with buying a home, like closing costs, could be made less of an issue since they were receiving this tax credit.
However, there are also arguments being made that with home prices as low as they currently are and the option for homebuyers to get a low interest rate, even though it may not be a record low rate, affordability is at hand in various areas of the nation but there are some advisers who feel that there are factors in place that may be preventing new homebuyers from entering the housing market at the present time. In fact, according to Housingwire,com, “New sales of single-family homes fell nearly 17% in February from a month earlier.”
Some analysts believe that homeowners are worried about purchasing a new home and then having the value decrease and there are even some who may be hesitant about the future of the economy, as there are concerns that housing may see a double dip in the coming months, even though there have been positive signs in some areas. Obviously, factors like unemployment have heavily played into the difficulties being seen in the housing market, but with more jobs reportedly being added to the workforce, there is hope that homeowners and potential homebuyers will feel more secure about either sustaining their mortgage payments or acquiring a new home.
Yet, some analysts believe that potential new homebuyers may face a more difficult road in the coming months if they wait to buy a home, as servicers are reportedly asking for a higher down payment on a home loan and, when it comes to interest rates, there are those who, again, believe they will rise. Understandably, not every homebuyer may be in a position to take advantage of offers on a new home at the present time, but even if an opportunity arises in the life of a homebuyer, caution may need to be taken in order to avoid any problems that current homeowners have been facing over the past months.