In the last 3 months in the US, the mortgage rates have continued to drop amid the tough economic conditions. Through this there are still plenty of homes for sale – particularly new homes which have struggled to find buyers who are often looking for foreclosure bargains, of which there are many.
The other problem facing homebuyers, even when they find plenty of homes for sale that suit them, is that they are struggling to be able to get a mortgage. With 15 year fixed rates under 4% the mortgage rates are looking good but many lenders have made it harder for the buyers to be able to satisfy lending conditions after the fallout from a few years ago when so many people defaulted on their loan payments.
Mortgage lenders are looking for larger downpayments and have stricter lending criteria, while homeowners who want to move are struggling to sell their own properties. It is difficult to tell when the problems in the property market will end and things start to look up – certainly right now the economic situation in the US does not look like it is going to improve overnight.
So if you are one of the lucky ones who is able to get finance in these times of low mortgage rates, and you can find the right property, then this could be the time for you to move.