Most Americans still value home sweet home

10.21.08
By Sarah Beldo

Although mortgages may have played a leading role in leading the country into its current economic predicament, many Americans are still happy they invested in a home.

That is the finding of OptHome's newest survey, which discovered that nearly three out of four homeowners believe that property is a good investment.

However, as anyone who has ever signed their name on the dotted line of a home loan knows, the path to ownership is not always easy - particularly during an economic downturn.

The same poll found that 74 percent of respondents think that obtaining a mortgage is the most difficult part of buying a house - up from 61 percent who held this opinion in June.

Over the past several months, banks have been tightening standards for loans of all kinds and requiring larger down payments, measures which put the squeeze on many prospective buyers who would already have landed a mortgage in the financial climate seen two years ago.

Meanwhile, last week's headlines saw the average rate on longer-term fixed-rate mortgages experience its largest week-to-week jump since 1982, according to figures reported by Freddie Mac.

Those taking out a 30-year home loan in mid-October agreed to pay an average of 6.46 percent in interest.

However, Keith Gumbinger of HSH Associates told CNN Money that this interest rate spike is not likely to last longer than a few months.

"Rates should probably settle back down. We should see an easing of credit availability and that should put downward pressure on rates," he predicted.

Dave Sears of OptHome also encouraged would-be buyers not to give up on their dream of homeownership.

He pointed out that first-time buyers receive a tax credit for their purchase, courtesy of the Housing Bill. In addition, those who are able to qualify for a mortgage will be able to take advantage of "very affordable prices" as a result of a surplus in the market, Sears said.

More Housing Market Articles | News Home | Discuss in our Forum

People view property as a good investment