Well, The Housing Market sure took a beating in ’08 but many people, just like you, realized their portion of the American Dream and bought their first home in 2008.
So what is 2009 going to bring?
Let’s start with some really good news about how much more affordable owning a home is from just one year ago.
These figures presented here represent Riverside County in California. (Perhaps you have heard of us, “Foreclosure Alley?). Some markets across the country did better others, like Florida, Las Vegas and Phoenix did much worse.
If you’re in one of those markets, it’s all good news because it just means homes are even more affordable for you.
This just in:
Good news for those looking to lock in rates! Mortgage rates continued to drop this week, as Freddie Mac reported that rates continued to drop consecutively for nine weeks in a row. Rates for a 30 year fixed mortgage dropped to 5.10% , down from 5.14% for the previous week. “Interest rates for 30-year fixed-rate mortgages fell for the ninth straight week and represented a third consecutive all-time record low since Freddie Mac’s survey began in April 1971,” Frank Nothaft, Freddie Mac’s chief economist stated.
Looking ahead to ’09 there will be tremendous opportunity for you, if you are prepared and willing to put in the effort necessary.
In January of 2008 the median price for a home in Riverside County (CA) was around $260,000 and interest rates were 6.5%. Now the median price is $220,000 and interest rates are at 5%. So what does that mean in dollars and cents?
Well someone looking at a median priced home in January of 2008 would have had a monthly payment (Principal and Interest) of appx. $1643/mo. In January of 2009 that payment would be $1181. That’s a decrease of 28%.
It would have taken more than $5000/mo income to qualify in January ’08 and now it would only take less than $3600/mo.
Of course taxes, insurance, HOA are in addition but bottom line is the ability to buy a home in Riverside County increased by 28%!
NOW WHO CAN’T GET EXCITED ABOUT THAT??
Tags: help for first time homebuyers, loans for first time home buyers