Mortgage Rates Begin to Rise

Published: 22nd August 2011
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Mortgage rates are still very low, but they are beginning to edge up a bit. Though you'll still find some very good deals out there, interest rates are up to about 4.5% for fixed rate, 30 year loans.

This slight rise is actually far less than predicted, considering that there have been recent reports of inflation in the country.

Home mortgage interest rates had been falling or remaining steady until this small uptick last week. But, most experts don't consider it to be symbolic of a serious change in home lending.

There are many signs that indicate that we have reached or are nearing the bottom of the home market. The slight raise in interest rates along with another decrease in home values makes it further appear that recovery is beginning. Experts do predict, however, that recovery is going to be slow for the housing market.

We're likely to continue to see a large inventory of homes for the next several months, and we may even see home prices decline a bit further. Inventory will remain high and there will still be foreclosure properties that can be purchased for low prices.

But, these conditions won't last forever. Those who have money to spend on buying a first or second home should make their move. We may not see housing prices combined with ultra low interest rates like this again in the immediate future.

For the family who has dreamed of owning a home, this is a great time. Not only will you be able to live the American dream, but you're making a great investment. Real estate has always proven to be a good investment when viewed over a period of years. And, right now, investing in real estate may be even more of a good investment. Housing prices are so low that it's nearly impossible for any investment you make not to appreciate over time. So, you can expect any home you buy now to make you money in the future.

The market is equally great for those who want second homes in resort areas, like those around Orlando. Condominiums and other home styles especially suited for vacation homes are in huge supply, and their prices are fantastic. Talk to a realtor in the area where you'd like a second home so that you can see just how easy it might be for you to afford a vacation home in a beautiful area of the country. You may even be able to rent out your second home when you're not using it in order to help defray the cost, or even turn the second home into a revenue producing property.

There's no question that we've seen some tough economic times. There's also no question that those tough times are going to continue for a while. But, for those who have money to invest, the real estate market is still a good one, and right now, it's an investment you can easily afford at today's prices.

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