Increase in Foreclosed Homes Suggest Strong Buyer's Market
With interest rates rising on adjustable rate mortgages, an increasing number of homes are being foreclosed. GuideToRealty.com reports that delinquency rates on certain loans have risen above 3 percent, creating an ideal market for both real estate investors and potential homebuyers (http://www.guidetorealty.com/calculators/index.jsp).
San Francisco, CA (PRWEB) August 17, 2006 -- A feature article on GuideToRealty.com suggests that the foreclosed homes sector of the realty market is now a strong market due to the increase in delinquency rates (greater than 3 percent) on high risk home loans (http://www.guidetorealty.com/calculators/foreclosedhomes.jsp). This is partially attributable to interest rates on adjustable rate mortgages (ARMs) having risen over three full percentage points since the historic low of 3.25 percent in June 2004. In addition, 25 percent of all mortgages are financed on adjustable rates, and that means that investors could have a burst of opportunity in the foreclosed home market.
John Spottiswood, spokesperson for GuideToRealty.com, emphasizes that the changes in interest rates could be a buyer's boon for the near future. He cautions, however, “With any real estate transaction—especially one that is part of a niche market such as foreclosed homes—it’s best to work with an agent who can guide you through the process.”
According to the Federal Reserve, the prime rate bottomed out at 4 percent in July 2003 and rose to 8 percent in July 2006, a full 2 percent increase since July 2005. Due to these rate increases, Interest.com states that one-year adjustable rate home loans are up 1.3 percent from one year ago. These ARMs can allow people to buy a more expensive home than they can afford, and escalating interest rates often lead to foreclosures, creating ideal conditions for potential buyers of foreclosed homes.
GuideToRealty.com (http://www.guidetorealty.com) offers potential and current foreclosed property buyers the following services:
| | - Research a real estate agent
- Find a home loan lender
- Compare mortgages
- Discover your home valuation
|
GuideToRealty.com is a rapidly growing online consumer resource for buyers and sellers of real estate. The site features details of real estate agents and local market and demographic information in more than 2,500 cities nationwide. The aim of GuideToRealty.com is to become the #1 consumer resource for the real estate market.
Mark Fisher
GuideToRealty.com
650-578-7639
http://www.guidetorealty.com/index.jsp
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