While rates are at all time lows, so are home prices declining. These home values will continue to decline and so will the number of buyers who want to buy them. Buyers have decided that as long as the decline in home values continue they will sit on the side lines. The savey buyer understands that the 20% downpayment could turn into a 0 equity position very quickly. In their mind a bump up in rates without the loss of their equity position means more to them. Much of the continued decline in Real Estate is associated with the unemployment or lack of quality work in our country. Until confidence in our leaders and spending is stopped expect the trend down on home values.
Jim Brown, Sun Home Loans, 732.245.5121