nana1

Housing Data Shows Downturn Could Be Prolonged

In my opinion, housing downturn will not be prolonged because:
1. Prices went down in some cases -70% - California. It means that affordability is much better.
2. I am real estate broker and mortgage broker and I see that first time home buyers that could not afford houses are buying now because they can afford.
3. Children of baby boomers are entering housing market as first time home buyers and these prices are heaven for them because they can afford.
4. FHA- loans - require only 3.5% down payment - conforming loans that are insured by Federal government - are welcome by banks, so please do not tell me that banks do not want to give you loan.
5. Interest Rate is steady - about 6% - for 30 year fixed - full amortization - you can always get if your credit score is OK