December 13 2010

Why 2011 will be the Year for New Home Buyers

by racheal

2011 Year For New Home Buyers - Sold Sign

Last Thursday the economic analysts at Feddie Mac featured what they think will most likely distinguish the 2011 housing and mortgage conditions:

• The New Year will offer a high amount of affordable homes. Many first-time home buyers will be attracted to the housing market conditions during 2011, which is predicted to translating into more home sales than in 2010.

• Relatively low mortgage rates will carry on well into the 2011. The Federal observers are expecting the rate of federal funds to continue its current range of 0% - 0.25% for most of 2011.Thirty-year fixed-rate loans are expected to remain below 5 percent throughout the whole year.

• Home prices are likely to begin a slow and steady recovery during the second half of 2011.

• Refinances will dwindle due to the fact that not only have many of the eligible borrowers have already refinanced, but the federal Making Home Affordable refinance program is expiring.

• If the business cycle continues as it has, the amount of loans that are 90+ days delinquent, or are in the foreclosure proceedings, will decline as payrolls begins to rise.

Source: Freddie Mac (12/09/2010)

 

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