But one seems not to worry anymore. This is because there had been recorded the lowest mortgage rate in the history of the housing crisis that positively affected building of new houses and directly helped in homeowners' keeping of their homes. This translated into an increase in home purchasing that alleviated the condition of the housing industry and reflected positive aura to homeowners that they can still recuperate from the downfall of their lives. And when talk about refinancing, when the mortgage rate decreases, the end result can be the monthly payment remains the same, enabling homeowners to save money from their existing loan.
Experts are still expectant to see an increase in homebuilders' confidence in the next few days. Statistics showed that homebuilders' confidence remained constant and they still view that constructing houses is still a poor investment.
The lowest mortgage rate was recorded last week, after the housing industry stretch for a 30-year fixed mortgage, at 3.34%. This figure is an essential leap in the downfall of the housing industry. But, without proper accompaniment of advancement in other sectors of the country, such as employment, then this recorded low mortgage rate would just be futile. This is because without employment, growth in the industry can never be possible. As experts say it, job is a contributing factor to an increase in the demand for houses. The housing market is expected to recover more if it is back-up by an increase in the employment rate.
Moreover, with the decrease in the mortgage rates, the authorities proposed the easing of the strict regulations and standards in the banking procedures. The housing bubble, back then, pushed banks to adhere to too strict and too tight standard operating procedures. This filtered the homeowners that are qualified and that can only afford of the mortgage in order to avoid loan defaults. This also strained subprime mortgagers in further burdening the housing market. But with the current shift in the mortgage rates and the apparent positive response from the authorities and agencies concerned, a transformation of banking procedure might be an appropriate act to let other individuals penetrate the housing market again. Many a number of financial organizations are adapting to the current change. And one good thing is that the US government is supportive of this move.
A growth in the demand for the product cannot only recuperate the housing market but also improve the condition of the economy as a whole. This lowest mortgage rates, recorded after the housing bubble burst, is expected not only to reduce the cost of borrowing but also increase the price. Everyone is hopeful and anxious with the new development in the efforts to alleviate the not-so-good condition of the housing market and the US economy. With proper legislatures and private sector actions, the possibility to recover from this downfall is in high hopes.
Saving money, time and effort is the important thing to consider in home buying. However, it is a fact that mortgage rates are not constant. As a wise home buyer, I highly recommend to purchase certain property when the lowest mortgage rates are available.