One thing the real estate industry has been lacking in recent years is buyers. Although technically considered a “buyers market”, the interest in mortgages has been quite low since the foreclosure crisis struck a few years ago. Now that efforts have been made towards reducing foreclosures and improving the loan modification process, more homeowners aren’t as afraid of a mortgage as they have been.
The interest rates have been low for a while now. However, the low rates haven’t been enough to entice buyers into a mortgage until recently. The continued low rates have boosted consumer confidence and allowed for more people to step out into the world of home ownership. With rates as low as 3.5% for some 30 year mortgage loans, homeowners who may not have qualified for rates even close to this level can now secure a great rate much easier than before.
The low rates haven’t just brought in new buyers, but opened the doors for more refinancing options. Many people are finding themselves eligible to refinance their old mortgages into new, lower rate mortgages. One of the great things about refinancing is that it allows homeowners to lower their payment and, hopefully, reduce the risk of mortgage debt or missed payments in the future.