Mortgage News

The most recent Standard & Poor's/Case-Shiller index of prices in 20 major metropolitan areas showed a 4.5% decline from May 2010 to May 2011.

Have we hit the Bottom?
Prices are dictated by many factors. The most important of these are supply and demand and interest rates. Interest rates and prices feed off of each other. That's what happenned in "the Boom" People had a budget that they had to stick with. When interest rates dropped and combined with verification of income that didn't have to be proven, that allowed buyers to buy more house, which in turn, raised the prices of those homes. (supply and demand)Now that we are back to proving our incomes (which never should have changed) house prices have returned.

The bottom line is what can people afford. This will ultimately dictate house prices. What people can afford is based off of two things: Their income and their debt.

For more info on Buying a Home visit www.ReadyToBuyAHouse.com