This article focused on the steady decline of interest rates on mortgage payments during this recent recession. Due to this same recession, the housing market had collapsed due to people having less income to make big purchases and many homes were foreclosed on creating an abundance of properties selling at low prices. Yet with this steady decrease in interest rates and the ability for people to refinance this has created a rise in property sales and prices as a result of the increasingly limited market. The increasing prices of properties on the market has a ripple effect that causes homeowners to feel even wealthier and gain the confidence to make these big purchases and sales of their properties which is essential for rekindling the property market and possibly spark a boost in the overall economy.
However, even with these low rates and promising upturn of the market most individuals still lack the disposable income to take advantage of these rates and cannot afford the large down payments given the strict loan policies that are still in place. Also one aspect of the housing market that is not factored into the average rates is the additional fees borrowers of loans must pay on top of what they already put down in order to have access to the lowest rates. These fees range from 0.8% to 0.6% of the total loaned amount which can also reduce the amount of people who have the initial disposable income to afford these lowest rates in the first place.
http://www.usatoday.com/story/money/business/2013/02/07/mortgage-rates-unchanged/1898601/
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