Financial Blog

The National Association of Realtors reported that its pending home sale index rose to 87.2 in October from a revised reading of 86.7 in September. This is a good sign but that is not enough to make a sigh of relief. Most realtors still believe that home sales will decline in 2008. A year ago home sales index was up more than 19% and this situation makes people worry.

Mike Larson, a real estate analyst for independent research firm Weiss Research said: “Things aren’t getting much worse, but they’re not getting much better either”.
In August, many lenders had to slam the brakes on home loans due to problems in the market for mortgage-backed securities. Then pending home sales index hit a record low of 85.5. With all these bad factors that effect world economics, people may use some benefits of such a situation. Mortgage rates are near a 30 year minimum, so it could be a good idea to buy a house now.
For example, 30 year fixed mortgage is 5.76% now and 15 year fixed mortgage is only 5.33%

Any problem has it benefits, isn’t it?

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Filed under: Mortgage by admin