Home buyers and investors have been focused on and concerned about the economic downturn, especially to the housing market, for the last 6-7 months. There has been a considerable amount of turmoil and restructuring of government and private lending institutions. These institutions have tightened their lending standards and practices in order to get back on track to fiscally responsible lending. There is good news, however, coming out of this financial mess that is positive for the home buyer especially 1st time home buyers. Low interest rates, tax credit and loan packages have made this a perfect time to buy a house. The interest rates for a 30 year fixed mortgage are now hovering at the 5% level. 15 year fixed mortgages can be attained for around 4.5%. Banks are offering competitive loan packages for all types of home buyers with stable employment and good credit scores. The government has passed the American Recovery and Reinvestment Act to assist qualified first time homebuyers purchasing a principal residence. This provides the homebuyer an $8000 tax credit on a principal home purchased between January 1, 2009 and December 1, 2009.
Home buyers find themselves in a perfect situation to purchase that new home you have been thinking about. The tax credit and interest rates incentives are out there and the window of opportunity is wide open. Take advantage of this perfect storm and buy that house.
