Home Mortgage Loan Rates – First Time Home Buyers Look for New Homes

Home Mortgage Loan Rates – First Time Home Buyers Look for New Homes


Posted on
February 8, 2010
No Comments

Home mortgage loan rates have been below 5% for the entire year of 2010. With mortgage rates very low and tax credits available there many first time home buyers that are looking for new homes. Unfortunately, this seems to be the only type of buyers in the market at the present time as most people have already refinanced.

Even though mortgage rates are well below 5% the amount of refinance activity continues to take decline in 2010. Most of the refinancing that was done over the last two years has taken those borrowers who had the ability to refinance out of the market. This leaves mostly first time homebuyers to hold up home prices.

With home mortgage loan rates extremely low and tax credits available there is a very good possibility that we will continue to see many first time home buyers enter the market. It will be interesting to see when the tax credit expires if these first time home buyers continue to hold home prices at a stable level.

if you are looking for a new home and you would like to get a low mortgage rate then you will need to make certain that you have a debt to income ratio of less than 50%. If you find that you have a low credit score and a significant amount of debt then you will not qualify for low mortgage rate.

Author: Jeremy North