If there was ever a right time to get a home mortgage, now would be it. Several factors influence the housing market which makes it favorable to get a loan even if housing prices have not dropped significantly.
Looking at the housing market trend, there are fewer and fewer people applying for a mortgage. This is influenced by current economic conditions. Despite this downtrend in new home mortgage loans, housing prices have not gone down. This happens because sellers adjusted their offer to meet current demand. As there isn`t an excessive number of listings during this period, prices have not dropped consistently. Yet, it is still an ideal time to get a home mortgage.
The FED did a good job of adjusting interest rates to help maintain the financial sector afloat. The reduction in home mortgage interest rates makes housing more affordable despite the marginal pricing changes. While houses may cost almost the same, getting a lower interest rate of below 3.5% means lower monthly payments. If your job is well secured, has a stable financial situation, an emergency fund, and no major debt, there is no reason as to why you should not consider getting a home mortgage.
Things get even more interesting if we look at the state of current home mortgage loans. Foreclosures have not spiked significantly and there is very little chance to see the same crisis from 2008 happen again. More and more people apply to delay their payments for a few months and even more look at refinancing to reduce their monthly payments and get into a better financial position. In these circumstances, the number of foreclosures is not estimated to go up. This means that the housing market prices will maintain a stable trend. What this means is that you should not expect to get a better interest rate or find cheaper houses in the near future thus you might want to look at what options you have now to get a home mortgage.
