Interest rates on mortgages have fallen to the lowest rate in the past 50 years to 4.58% for an average 30-year loan.
Yet, even with these low rates there are still very few customers lining up for new mortgages or trying to refinance.
Unfortunately, the economy has affected the housing market and individuals to such an extent that even the low interest rates are failing to revive the mortgage market.
Most of the people who could refinance, meaning that their home had retained at least as much value as the loan they had against it and they still had good enough credit, have already refinanced.
And many buyers who still have good credit and the means to purchase a home are waiting because prices still seem to be coming down and there is no longer the $8000. tax credit incentive to push them to do it now.
And of course, there are the people who were hurt by the housing crunch, the ones who experienced the short sales, the foreclosures and worse, they won’t be in the market for a while yet.
But the good news is that even with a bankruptcy or a foreclosure with sufficient income and means to purchase, one could qualify for a new mortgage in just a couple of years. Generally it is 2 years following bankruptcy and 3 years following foreclosure.
During the waiting period, there are credit repair techniques that can be used that can help to increase the credit score and improve the credit rating.
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