Is Now A Good Time To Buy?

Nov 4th, 2007 @ 5:23 PM by Alden Smith

Research shows that now is a good time to buy a home.  Fixed mortgage rates are down, and there is no end to the available homes in a market saturated by foreclosures.  There is still much trouble in the housing sector at this time.

Some Statistics

According to the Census Bureau, vacant homes have reached 2.07 million homes.  This is 7 percent above one year ago levels, but 5 percent down from the first quarter.

Mortgage Bankers Association reports that mortgage application volume increased to 681.7 from 656.5, a 3.8% increase.  Keep in mind, however, that a good portion of this is refinancing an existing loan.

Tougher lending standards that banks have imposed to protect themselves has caused D.R Horton, the nation’s largest builder, to see  their orders plunge 39% in its fourth quarter.

Foreclosures are still high – doubled from a year ago.  That figures out to one for every 557 households in the S.

Despite an increase in mortgage applications, mortgage applications are down from the previous year, with purchasing down 1.8% to 411.4.  Refinancing has slid 3.8%.

The Good News

Congress is still making noises about working with mortgage lenders to attempt to convert ARM’s in to fixed rate mortgages.  It is the ARM that causes so much turmoil in the housing sector.  Time will tell if a bailout is imminent.  Without this fix, the housing sector will remain very unstable.  This action is taking a lot of heat from those who see it as enabling people who have made bad choices.  The fact remains that if something of this nature is not accomplished, we face tough economic times, leading to problems in other areas.  Again, we wait and see…