Real Estate Sector May Offer Opportunity for Buyers

7/9/2010

Now may be a good time for would-be homeowners to consider getting into the market due to the combination of lower-than-ever mortgage rates and a slowdown in sales that could help keep prices from rising in the short term.

Earlier this month, the National Association of Realtors announced a 30 percent drop in its Pending Homes Sales Index. This was largely due to the expiration early in the spring of the popular homebuyer tax credit, which had helped to spur sales in the closing months of the recession.

Another positive sign for would-be homeowners was a report from Freddie Mac that mortgage rates have fallen to another record low. The report cited a 4.57 percent average rate, down only slightly from the previous week's 4.58 percent.

Frank Nothaft, chief economist for Freddie Mac, noted that the mortgage rates have also contributed to a strong increase in refinancing activity.

Another useful tip for people interested in buying a house is to learn more about homeowners insurance and the various strategies that can be employed to help get the most reasonable rates.

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