Monday, March 2, 2009

Home Purchase: Deal or No Deal?

Deal. If you are contemplating buying a home, now may be the perfect time to make a purchase -- if you have the money and a secure job. Here’s some info I read on Yahoo Finance today.

Real estate sales have sagged as buyers have been frozen in the headlights of the economic downturn. As a result, prices are falling. In addition, mortgage rates have fallen near historic lows, substantially reducing the cost of financing for buyers with good credit. Buyers who act now rather than wait are likely to see the best return.

Somebody has to start buying, and when they do, there are going to be more buyers on the market, which is going to cause home prices to go up. When you stimulate home prices to go up, that affects the economy in a positive way, which raises interest rates. By the time people hear that things are better, their opportunity is already gone.

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