Report says Seniors and Young Adults Will Influence Housing Market

According to a recent article by the National Association of Realtors®, aging baby boomers and their children will make a significant impact on the U.S. housing market.

The article was based on the findings of a recent report released by the Bipartisan Policy Center. The report analyzed demographic trends and their influence on home ownership in the United States, concluding that within the next 20 years, the aging baby boomer generation will increase the nation's senior population by 30 million.

According to the article, "That demographic shift will likely help increase the supply of housing, since people over age 65 typically release much more housing than they absorb."

"This increased supply could mean additional buying opportunities for echo boomers. That generation will absorb 75-80 percent of the available inventory of owner-occupied housing by 2020,” said NAR chief economist, Lawrence Yun.

To read the full article, click here: http://www.realtor.org/press_room/news_releases/2012/03/influence

Mortgage Rates Continue to Fall - 15 Yr At New Lows

Don't look now but mortgage rates have fallen to new lows once again with the 15 year average slipping down to 3.88%. Below is a snapshot of interest rate averages pulled from Freddie Mac's weekly market survey.

30 Yr. Fixed Mortgage Rate Average: 3.88% (.7 pts)  
15 Yr. Fixed Mortgage Rate Average: 3.11% (.7 pts)
5/1 ARM Average: 2.85% (.7 pts)
1/1 ARM Average: 2.80% (.6 pts)

This is the third straight week for fixed mortgage rates inching lower.

You can check current mortgage rates and closing costs on ForTheBestRate.com. Simply click here, select your state and desired home loan program from the dropdown selection tool, and then contact the advetising mortgage companies directly to learn more about their rates and programs.  For mortgage rates on products such as investment property loans, second home financing, and/or USDA rural housing loans, you'll need to contact the various lenders and brokers individually.

How Can You Tell if a Home is in an Eligible Area for USDA Rural Housing Loan Financing

The first step in determining if a home is in a USDA eligible rural area is to conduct a property search on USDA's web site. You can look at exact property addresses to determine eligibility or you can conduct a search on a map by selecting the desired state and county. Using the map feature, it can be difficult to determine an exact line in the sand so you may need to speak with a mortgage or real estate professional for further assistance.

You can also look up income eligibility requirements on USDA's site.

USDA rural housing loans are used to help low income buyers purchase real estate in rural communities in the United States. Buyers may only have an income of up to 115% of the median income for the area. Loan programs have a fixed rate for 30 years and there are no down payment requirements.