In the most recent quarter it was reported that homeownership rose, which is the hopeful news for some in the housing market as there are still a great deal of vacancies in terms of homes that are sitting empty and of course foreclosures that may be on the rise in 2011 and in the next year, are all obviously going to be adding to the inventory that many banks are trying to reduce. Yet, for homebuyers who are looking for an opportunity to purchase, many often argue that now is a beneficial time to do so if certain requirements can be met that will allow buyers to take advantage of today’s low mortgage interest rates that, for the past few weeks have been around 4% on common loans like the 30-year fixed rate mortgage.
Understandably though, homeowners do need to understand that just because conditions may be favorable in the housing market, in terms of getting low home prices in some areas and an affordable interest rate, this does not mean that everyone who has been considering a home needs to rush out and buy. While many lenders and mortgage servicers would love to sell the homes that they have, again as many are seeing a large amount of inventory in place, this does not necessarily mean that every homeowner can qualify for optimal rates nor can they meet certain conditions like closing costs.
This is where some consumers have been hesitant to buy as there are not only those who are uncertain about the future of the housing market and home prices, which has created a wait-and-see attitude, but others may be in a position where they cannot afford closing costs, other fees, or simply may not be able to make a down payment a lender requires. It’s because of this that potential buyers are in a position where they are not only being urged to look at their financial position, talk with different lenders to see who can offer the best rate, but also make sure that the costs that are going to arise will be affordable in terms of their personal financial position.
Yet though, despite the fact that we have seen some improvements in the area of homeownership, there are still problems arising in terms of delinquency, foreclosures, and the simple inability of consumers to purchase a home due to factors like unemployment or severe financial distress. Also, personal debt may be a hindrance for some as consumers who may be in a position where they owe a substantial amount on credit card debts, student loans, or a combination of debts will not necessarily be the best candidate for a new homebuyer at the present time, nor will they necessarily receive the best rate if financial problems have arisen recently and led to a lower credit score. However, it is hoped that these increases in home ownership may continue as a result of not simply individuals buying homes but of consumers being in a position to qualify for affordable mortgages, be able to pay this mortgage as a result of financial security, and also more consumers being in a position where they can afford to purchase a home even though down payments and fees are a factor.