Hal's Mortgage Blog

The hottest segment of the housing market right now is the First Time Home Buyer. Encouraged by lower home prices, low interest rates and aggressive federal actions, such as the Tax Credit, buyers are seeing this as their opportunity to become homeowners.

For the past eight months pending sales (homes under contract) have been rising. The Pending Home Sales Index issued by the National Association of Realtors is higher that it has been since December 2006.

There is a chance of slow down after the Tax Credit expires, and it appears that will happen in June of 2010, but experts think that may be brief. The outlook for the long term seems to be favorable.

I’ve personally been through several down cycles over the years and the old timers always used to say, “Don’t worry, whenever the market slows down, there is always a pent up demand. Keep your eye on the pent up demand”.

I don’t expect a new boom in home sales. The economy is still making buyers cautious, but I do see signs for optimism especially among those qualified First Time Home Buyers.