| In most locations around the country, developers are in | | | | but as of the end of 2007 they were once again |
| the process of reducing their supply of unsold new | | | | nearing an all-time low. As of January 4, 2008, the |
| homes and recognizing that 2008 will not be as vibrant | | | | average rate for a 30 year FRM was 6.42%; for a 15 |
| a year as in the recent past. Most developers will be | | | | year FRM 5.95% and a 1 year ARM was 6.08%. With |
| setting their goals far more conservatively than in | | | | the myriad of different loan types available for each |
| previous years. As a result, they will buy fewer lots | | | | buyer’s needs, interest rates will vary, so shop |
| and start fewer homes in order to avoid having a | | | | around. WDH Nationwide Mortgages, a national lender |
| standing inventory. What does this mean for the | | | | in all 50 states that uses over 350 FDIC banks to |
| person looking to buy a new home? New and used | | | | ensure the best loans for their clients, provides |
| home prices have stabilized, interest rates have fallen, | | | | information on their web page for prospective home |
| real estate has historically been one of the best | | | | buyers to learn more about the types of loans |
| investments, and this next year might present a good | | | | available for potential buyers. |
| buying opportunity, especially for those planning for a | | | | As an investment opportunity, Looking at the long-term |
| long term investment in their own home. | | | | history of stocks and bonds and real estate, it can be |
| The resale market was active in 2007 with more than | | | | said without refute that owning a home is the most |
| 400,000 homes sold in California alone. There is no | | | | certain way one can accumulate long-term wealth. |
| reason to believe that 2008 will not provide more of | | | | It’s amazingly dependable compared to other |
| the same resulting in the opportunity for existing home | | | | investing opportunities. And, better yet, you get to |
| owners to trade up into a new home, for renters to | | | | enjoy the benefits of living in this investment. Prices |
| buy their first home or for investors to continue to | | | | have stabilized and this next year might present a |
| purchase, rehab and sell or rent homes. | | | | good buying opportunity. |
| No one knows what interest rates will be in the future, | | | | |