Diving interest rates have made mortgage loans low cost loans

Everyone who can are eligible for the financing can get inexpensive loans for purchasing real estate, because of low mortgage interest rates. Rates for 30-year fixed, 15-year fixed and five-year adjustable mortgage loans are beginning to slip again after housing data indicates growth has stalled in real estate. Many think that a double dip in the housing market is now very much a possibility. Article resource – Plunging interest rates make mortgages low cost loans for now by MoneyBlogNewz.

Those who qualify might get a steal on a house

Currently, the market rates for home loans are starting to trend downward as demand is waning for housing. Any qualified buyers might start looking. Really inexpensive loans are available. MSNBC states that all time lows are being hit with the five-year arm, or ARM, just went down to 3.72 percent from the 3.80 percent it was. A 3.23 percent rate was reached with five-year ARMs in Feb.. This means it has really gone up. The 30 year fixed home loans hit a 40 year low of 4.17 percent in Nov while now they have gone up to 4.87 percent. Currently, 4.15 percent is what a 15 year fixed mortgage costs.

Possibly even double dip

It is feasible that a double dip might happen for the housing industry. CNN states the possibilities of this happening. That doesn’t mean an individual will ever be able to buy a home by taking out a couple of payday advances, but it probably will not be pleasant to view the real estate industry to slip even further to the abyss. Case-Shiller Index co-founder Robert Schiller explained that the costs of homes might be "falling another 15, 20 or 25 percent.". It seems very feasible for a real estate double dip to occur since housing costs are at the lowest amounts they have been since the 2008 crash. The economy might get even worse if this happens. State budget difficulties would get worse if that is the case since property taxes are relied upon in several states for revenue.

Rentals wanted more than ever

Since the latest recession started in the housing industry, it has called into question whether it is better to rent or buy. Buying a home when values go down can be good. This is only if the person can then sell it after the values go back up. When putting in lots of equity or having paid off the mortgage, it’s even a better investment. The property tax and maintenance do not have to be paid when leasing though. When renting, money ends up being put into nothing. When owning a house, at least your monthly payments are going towards your mortgage.

Citations

MSNBC

msnbc.msn.com/id/38770102/ns/business-real_estate/

CNN

money.cnn.com/2011/03/03/real_estate/housing_buy_or_not/index.htm