Homeowners have simpler time paying home loans in spite of lousy market

Fewer people are having a hard time paying the mortgage, though the housing market is still not doing too well. The joblessness rate is beginning to ease as employers are beginning to hire once again. However, that hasn’t translated to better conditions in the overall housing market.

Less homes underwater

In comparison with last year, fewer people believe homes are underwater. This was shown in a Harris Interactive poll, reports Daily Finance. Last year, there were 24 percent of respondents that believed their home was worth less than they owed on it. This year, that number dropped to 21 percent on 3,000 respondents. Additionally, 22 percent of respondents in the Harris poll were struggling to make mortgage payments, compared to 29 percent last year. However, 3 percent fewer individuals in the poll said they had a mortgage. There are fewer people taking out short term installment loans to cover a mortgage with a lower unemployment rate too.

Market full of homes

Analysts are worried about distressed properties. This is because they keep costs low, reports USA Today. In January, it was noted that there were 1.8 million distressed homes. Any of these homes hadn't made payments for more than 90 days. The price of a distressed home always is at least 20 percent lower, which makes them attractive to bargain hunters and real estate investors. Unfortunately, a large supply keeps home costs lower nationally. Soon the moratorium on foreclosures will end too, states Reuters. This will mean more foreclosures are to take place in the coming months. Because of questionable foreclosure practices, the government investigated the largest mortgage loan companies in the nation including Wells Fargo and Bank of America.

Everyone who can should purchase a cheap home

More than likely, the market will continue as a buyer's market. For the next few months, MSNBC points out, home prices will continue to fall. The record low rates for home loans were just hit and are starting to come back out. More than likely, it would be good for you to get your home now in a low rate. However, loan companies have been fairly skittish in an uncertain climate.

Citations

Daily Finance

dailyfinance.com/story/real-estate/fewer-us-mortgages-in-trouble/19902674/

USA Today

usatoday.com/money/economy/housing/2011-03-30-distressed-homes-shadow-inventory.htm

Reuters

reuters.com/article/2011/03/31/us-financial-regulation-mortgages-idUSTRE72A63J20110331

MSNBC

msnbc.msn.com/id/38770102/ns/business-real_estate/