Home Sales Slump in the Wake of Home Buyer’s Tax Opportunities

Home sales were certainly flying high when home buyers were struggling to get offers in on homes before the April 30th deadline for the home buyer’s tax credit qualification; now in the aftermath of that home buying frenzy, the rush for homes seems to have died down over much of the country. Loan requests have dropped to the lowest levels since December 1996 while at the same time mortgage refinancing has dropped 2.9 percent and mortgage applications have dropped to 35% below last year’s numbers, according to the Mortgage Bankers Association.
While mortgage rates have dropped to their lowest levels in about fifty years, there are still many forces at work that make it difficult, if not impossible, for large numbers of Americans to purchase a home. Unemployment rates are still very high across most of the nation and plummeting credit scores are making it difficult for many people to get a home loan. The majority of buyers who were looking to buy a home this year have already taken advantage of the home buyer’s tax credit and the low interest that was available at the beginning of the year; many of the people who would like to buy a new home at this point in the year are struggling to sell their existing homes or have poor credit and cannot get financing.
Poor credit is reportedly affecting at least 25% of Americans who are now considered a poor credit risk. Personal bankruptcies and foreclosures are major influences Contracts Between Buyer And Seller on credit scores, but it is becoming increasingly more common that late payments due to lost jobs or reduces hours are also affecting credit scores.
Even home buyers with good credit who are looking to purchase a home and can get good financing are having some troubles securing a home. In a market that has seen huge drops in home values, there are many homes for sale out there Nc Real Estate Exam Pass Rate that are still priced much higher than what they are worth in the current market; many home owners are unwilling to accept that buyers are looking for good value not overinflated prices when they are looking to buy a new home.
Only time will tell how much this current trend will affect the struggle for economic recovery that we are all working through; with less people able to buy homes, there will be more inventory piling up as foreclosures keep happening and Americans struggle to find work.

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