Monday, January 30, 2012

Mortgages may be cheaper than ever but that doesn’t mean it’s time to buy

The U.S. housing market is like a case of good cop/bad cop.

The good cop softens you up with record-low mortgage rates and a huge supply of available houses. The bad cops — risk-averse lenders – have tightened their loans and require bigger down payments along with stellar credit.

This push-pull scenario is likely to continue in 2012, say U.S. housing experts. The National Association of Realtors forecasts a rise in home sales of 5 percent, to 4.5 million in 2012, but at the same time, “[growth] is a slow, gradual process. It’s been frustrating,” says Walter Molony, National Association of Realtors spokesman. “It’s tough to get a mortgage. People have to pay attention to their credit scores.”

Read the rest of the article at The Daily Caller

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