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2nd Home Mortgage Rate and Home Price Forecasts for 2011-2012
If you’re considering buying a 2nd home, you’d be wise to consider the 2nd home mortgage rate forecasts for 2011. Not only are these forecasts a vital statistic for potential homeowners throughout the United States, they are also a type of gauge for predicting the state and direction of the economy—an economy that is not improving as fast as most Americans had hoped. Back in July of 2010, many mortgage experts had predicted that the real estate market would begin to see a resurgence and that home prices would be on the rise, which could have caused 2nd home mortgage rate to rise, but that prediction has yet to come true, and as the median price for homes continues to dip it has created a favorable market for potential buyers of 2nd homes, but not so favorable for those trying to sell.
2nd Home Mortgage Rate and the Price Forecast
It’s a well known fact that when real estate is booming, rates, including 2nd home mortgage rate, go on the rise, but when the market is stagnant as it is now we see the opposite effect. This is not expected to change anytime soon. According to a recent study involving several large mortgage firms, the average price for a home in the US may continue to fall until mid 2012. This can be largely attributed to double-digit unemployment rates in many parts of the country and the sheer number of home foreclosures that affected so many people.
People living in large cities and metropolitan areas are getting hit the hardest by this recent and continuing home price slump. Studies indicate that in close to forty of the fifty-five largest cities in the United States, there is at least a 70 percent chance that home prices will continue to fall until the end of 2012. This includes cities such as:
- Los Angeles
- San Francisco
- Miami
- New York
- Chicago
- Seattle
- And many, many more
Ironically, while these cities are now being hit the hardest, they are also the ones that profited most when the economic climate was more stable.
It’s not all bad news though. If you’re currently in the market for a 2nd home it appears you still have time to be rather choosy and still get a great deal. Many homeowners are desperate to sell their homes, and as home prices continue to dip, that desperation may worsen, allowing you to get a great deal on the home of your dreams. Moreover, the slumping housing market continues to have a positive effect on 2nd home mortgage rate—rates which continue to fall as the slump continues—so not only will the price you pay for a home be substantially less, the interest rate you pay on the loan will also be lower and will keep your payment very manageable indeed.