Mortgage Rates and Home Prices

As we have all seen, housing sales are down in most states across the country. For some, there is a silver lining to this cloud. Young individuals and families who thought they would never be able to own a home back in 2005 now see that the possibility is a distinct reality. Falling home prices open up the market to millions of people who were simply unable to purchase homes at yesterday’s prices—particularly in expensive areas such as New York, New Jersey, and California.

Not everyone needs to own a home. Some people prefer renting for reasons that have nothing to do with home prices! Some individuals rent to avoid maintenance costs, the time and trouble involved with lawn care, doing repairs, and upgrading things like appliances, plumbing, and electricity.Those who are interested, though, should take a look around. If you haven’t looked at housing prices over the last year, you are bound to be surprised when you glance at them now.

Take New Jersey, for example. According to Newjerseyrates.com, prices there have declined by an average of 15 to 20 percent in every county over the past three-and-a-half years. At the beginning of 2009, real estate professionals noted that select sellers began slashing prices by 10 to 20 percent, some even 25 percent to get an edge over other sellers.

If you think you may want to own a home, there are some serious deals to be found on the market now. It doesn’t hurt that interest rates are as low as they will ever be either. In terms of interest, one point can raise the total price paid on a home by tens of thousands of dollars! If you are thinking of buying but just want to see what the cost of a home would mean in terms of a monthly mortgage payment, just contact a local loan agent or site like New Jersey Rates, which shows a variety of places and rates they charge.