| Individuals who can get the financing can benefit from low interest rates on mortgages by getting inexpensive loans. The housing market has nevertheless not fully recovered, and the 30 year fixed, 15 year fixed, and five year adjustable rate mortgages are all near record lows. Many think that a double dip in the housing market is now very much a possibility. Article resource - "Mortgages have lower interest rates these days making them low cost loans" Plunging interest rates make mortgages low cost loans for now by MoneyBlogNewz.
Those who qualify might get a steal on a home
Currently, the market rates for house loans are starting to trend downward as demand is waning for housing. Any qualified buyers might start looking. Really inexpensive loans are available. The five-year arm, ARM, went from 3.80 percent down to 3.72 percent. MSNBC states that arms are as low as they are going to get. The five year ARMS have actually gone up from February when they were at 3.23 percent. The average rate for a 30-year fixed mortgage hit 4.87 percent, more than the rate observed in November, when 30-year fixed mortgages hit a 40-year low of 4.17 percent. The going rate for 15-year fixed home loans is currently 4.15 percent.
Double dip not out of the question
CNN reports that the housing industry may get a second period of recession soon. The real estate industry may get even worse than it currently is at even though it won’t go down so far that pay day loans can help with purchasing. Case-Shiller Index co-founder Robert Schiller explained the prices of homes may be “falling another 15, 20 or 25 percent.”. Since the 2008 crash, housing prices are at the lowest rate ever. It does not seem impossible for a double dip to occur. If it were to happen, it could mean further bad news for an already shaky economy. Several states use property taxes as part of their revenue. The states would have even worse difficulties if this double dip occurred.
Renting may be the best choice
The decision between leasing and getting has been something considered by everybody during this recession. Buying a house when values go down might be good. This is only if the person can then sell it after the values go back up. It also helps to have paid off the mortgage or to have gained a good share of equity. However, renters pay no property taxes and have to do little, if any, maintenance. Granted renting means; having to part with more instant cash every month than a homeowner.
Citations
MSNBC
msnbc.msn.com/id/38770102/ns/business-real_estate/
CNN
money.cnn.com/2011/03/03/real_estate/housing_buy_or_not/index.htm
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