January 29th, 2013 4:23 PM by Michael and Jill Kohler
Mortgage rates remain at record lows, yet the housing market remains weak. Low interest rates aren’t helping the housing market anymore. With the rates are record lows and the economy is falling, the housing market remains stuck. The main thing missing for a housing recovery is the consumer access to credit, not low mortgage rates. When rates rise to their natural level, lenders will be incentivized to lend and credit won’t be such an issue. The Philadelphia lending market is not as right as many other lending markets. Some analysts think that until the Fed changes it’s view, there is no incentive for banks to change their behavior and housing will continue to suffer.
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