5 reasons homebuyers can be thankful this Thanksgivingby Tim Manni
We all know that this economy has brought on hard times for millions of Americans. I think everyone agrees that this country’s economic woes won’t end until the housing market turns around. Amidst the still-anemic news of recovery are some bright spots, though.
If you’re a potential homebuyer, you have five big reasons to feel thankful this Thanksgiving:
1. Rock-bottom mortgage rates:
Mortgage rates are at their lowest point in some five decades. Whether you’re buying or refinancing, this is an incredible opportunity to lock in a record-low mortgage rate.
Even though we got a glimpse of rising mortgage rates last week, rates remain well below levels seen even as far back as a year ago.
2. The Federal Reserve:
No other government entity has been able to do more for the housing market than the Fed. Its purchase of mortgage-backed securities and Treasuries between late 2008 and early 2010 has been the driving force behind record-low mortgage rates.
The newly unveiled Treasury purchase program could do more of the same. Even better, this new round of Fed support might just get jittery private investors back into the mortgage market — something no one has been able to do to this point. Borrowers come out the winner in that scenario.
3. The Federal Housing Administration:
In a lending environment where getting a mortgage seems to require three wishes from the FICO fairy, the Federal Housing Administration (FHA) has been the white knight, altering some lending practices to accommodate borrowers who wouldn’t otherwise qualify for a home loan.
FHA loans only require 3.5 percent down payment for borrowers with a credit score of 580 and above — and they now only require a 1 percent fee upfront, helping even more borrowers access financing for a home purchase.
Be sure to check out our entire slideshow: 5 reasons homebuyers can be thankful this Thanksgiving