Great Time to Buy a House?

I have never been interested in business, historically or otherwise.  This class, however, has certainly broadened my views and made me more aware of what is going on around me.  I would have never learned about French labors laws, for example, had it not been for this class.  My mind would shout down and my eyes would glaze over if I heard a business report or if someone started talking to me about economics.  Now that I a have a better historical basis, at least for the United States, I not only shut down, but I can actively engage myself in the conversation.  Economics are still very political and I refuse to be drawn into a partisan debate, but I have a better understanding of what both sides of the isle are talking about.

 

Recently, my wife and I have decided to buy a home, my blog this week reflects this, as I assure you, that I did not spontaneously adopt a bizarre interest in mortgage rates.  I listened to a blurb on NPR this week where there were several guests that ere debating whether or not this is the right time to buy a home.  While most of the guests did concur that this was a prime time to buy a new home, there were still a vocal minority who insist that unless you are absolutely certain that your financial future is 100% secure, you should wait, even with the $8,000 tax credit. 

 

It always amazes me that one set of data can lead to two different conclusions.  The first article I read talked about how tough times are in the housing industry and unemployment is negatively affecting the market.  The more people who cannot work, the more people will end up foreclosing on their homes, due to the fact that they can no longer make the payments.  However, that is only half of the equation.  The other part is that if people are not making money, and do not already own a home, then the rate of houses bought also decreases.  

 

The second article that I read, however, had a much more up beat tone to it.  This article discussed how, right now fixed mortgage rates are cheaper than ever before.  It said that now was the perfect time to buy, and with foreclosures up, prices down and mortgage rates way down, that should help the economy.  So with two drastically different views, who are we supposed to believe? 

 

 

Foreclosure, Delinquency Rates Spike Amid Growing Unemployment

http://www.washingtonpost.com/wp-dyn/content/article/2009/11/19/AR2009111902097.html?hpid=moreheadlines

 

Fixed Mortgages Cheaper Than Ever

http://www.bankaholic.com/fixed-rate-mortgages-cheaper-than-ever/

Comments

[Lindsey Bestebreurtje]

On the front page of the Washington Post last week there was a story about a woman who lost her home and is now living in a hotel with her young son. I was all geared up for a sob story but instead found out that this woman who made $15,000 a year in child care had falsified documents claiming to make +$100,000 a year to get a home loan for an almost $700,000 town house.

Maybe it is a good time to buy for some people because prices are low, mortgage rates are low, and there is the $8,000 credit but people should really look hard at their individual situations before deciding to buy. Unless more people end up like this stupid, stupid woman then people should realize that the advice of experts doesn't necessarily apply to everyone and they should analyze their own finances first.