Houses Fall in Price
If you have put up with the thought that there will always be this huge gap between your dream home and what you can actually afford to buy, you shouldn’t have. A financial crisis is the key news at present but it also turns out that for some lucky ones it’s the key to having their dream come true. We witness the historic fall in housing prices, as well as lowest interest rates on fixed-rate mortgages. House hunters, now’s your chance!
Now that home prices have fallen dramatically, as much as 30% in some parts of the country, you can afford homes in better areas than you used to consider before. Mortgage rates are the lowest they’ve been in decades at present. The rates on 30-year fixed mortgage rate dropped below 5% and experts believe it is not the limit. This state of things have lead to a record refinancing activity as homeowners blessed with good credit and equity in their homes strive to lock in as soon as possible. Mortgages for home purchases have also increased and experts predict a huge rise in mortgage applications quite soon.
Simple comparison of home mortgage prices in different areas shows, that there appear a lot more options for potential home buyers than it used to be before crisis. Only a couple of examples: Riverside, California, a four-bedroom bungalow is for sale now for $179,900. It was sold for $259,425 in June, 2008. A duplex in Atlanta is now selling for only $50,000, while it was sold for $292,500 in 2006.