America's Real Estate Market

1412 Words Oct 27th, 2014 6 Pages
In today’s real estate market, it can be a scary investment to purchase a home, especially if you feel like you failed the first time around. I know dozens of people who purchased homes years ago during the real estate boom, and eventual crash. People were left with a defeatist attitude and wondered if they would or could ever own another home again. And quite frankly, being a homeowner became less and less attractive to them. It seems that as of late, there has been a shift and a more optimistic outlook on the housing market and those same foreclosure victims appear to have a fighting chance at owning a home again. More options are available to them that provide more of a safety net and opportunity for success this time around.
As of October of 2014, the average rate for a fifteen year fixed-rate mortgage has dipped to its lowest level since June 2013, at 3.08%, according to Freddie Mac’s weekly survey. This is a tenth of a percentage point lower than less than a month ago, and down from 3.36% earlier this month. Rates for 30-year loans have also decreased 0.05 percent at 3.92%. For existing homeowners with mortgages only a few years old, borrowers can switch their existing thirty year loans for a new 15-year loan at the current rate. These homeowners would be able to afford slightly higher monthly mortgages but save more money long term in interest by cutting the term of the loan in half.
It is predicted that the latest international turmoil has assisted in this…

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