66% of all households have mortgages
18% had adjustable rates in 2003
25% had adjustable rates in 2005
16% were prime borrowers in 2003
25% were prime borrowers in 2005
45% were sub-prime borrowers in 2003
59% were sub-prime borrowers in 2005
*Figures according to Freddie Mac
When the inventories in the housing market return to normal levels and the mortgage-backed securities return to a more reasonable investment, the future will be brighter.
Not all bad news, current buyers are looking around and seeing the good news: plenty of inventory, low prices, sellers willing to negotiate and then negotiate some more.
A word of caution: It’s more important than ever to check your credit scores, to find a professionial mortgagebanker/broker and to get pre-approved. Only the best will qualify, there isn’t much money flowing into real estate finance right now.