Feb 15

The recent foreclosure rates and prices in the US have received a mixed response in the entire country. The changes are not in a set pattern. Whilst the states of California, Florida, Texas and Colorado witnessed an increase in the foreclosure rates in the range of 1% to 20%, other states like Georgia, Arizona, Michigan saw a drop. Overall, the foreclosure rates have increased by 5% over the second quarter, and are 23% higher than the rates in the third quarter of 2008. Most experts believe that the foreclosure rates will increase, albeit at a slower rate, throughout this year. The foreclosure rate in September was lower than August by 4%.

In case you have been contemplating owning your own property for some time now and the prices were just not right, the foreclosed deals will be a good option to look at. Many distressed sellers out there, due to the economic downturn, are eager to get a decent price on their property. In the third quarter of the year 2009, California, Nevada, Michigan, Arizona, Illinois and Florida made up 62% of the foreclosure pie. When compared to the same period in the 2008, the mortgage rates have also gone down. The fixed 15, 20 and 30-year mortgage interest rates stood between 4.6 to 5.3%. Most believe that the interest rates are set to go up, though not sharply.

Although the foreclosure rates have been fluctuating, the real estate prices in most of the large markets in the country have seen an upward trend. Though the increase has not been sharp, it is seen as a positive indication for the real estate business. The first quarter of the year showed a fall of prices by 6.2% compared to the last quarter of 2008. May 2009 saw an upward trend in real estate prices for the first time in the last three years, an increase of 0.5% over last month.

These changes have spurred first time buyers to hunt for their own dream home, along with the tax benefits and low interest rates. If you are thinking about investing in real estate, it could be just the right time, provided you do your homework well with proper financial planning. The mortgage rates are definitely on the comfortable side as real estate prices make a comeback of sorts. With all of these factors put together, it makes sense for people who wish to buy a home to do so now. If you’re investing, it could definitely be the right time to get in.

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