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Jan 1, 2009 9:59 pm US/Central
Signs Show N. Texas Housing Crisis May Be Easing
NORTH TEXAS (CBS 11 / TXA 21) ―
As we start the New Year there are signs that the housing crisis may be easing. Some mortgage lenders in North Texas say loan applications are up, people are shopping and more importantly, people are buying.
The thought of buying a house or losing a house has been frightening to a lot of people. Interest rates are at a 37-year low and that's creating opportunities for those who want to buy.
Jason and Karina Watson are excited. They're newly weds who have a new baby and have outgrown their two bedroom apartment in Plano.
So the Watsons can't wait to move into their new house in The Colony. "We got it down to where it's within our budget, within our price range," Jason Watson told CBS 11 News. "With all the other bills that we have it's going to be just right!"
Even though Jason's job appears to be on stable ground, Karina worries about making the investment in the $120,000 house. "With him and only one income, I'm like, I worry. But that's just me. He's just like, it's okay, we'll get through it. It's okay, we'll be fine," she said.
North Texas mortgage brokers say they're seeing a surge in home loan applications. "Now that interest rates have dropped in the past nine weeks in a row, we're seeing huge activity, not just in my business, but nationwide," mortgage broker Rodney Anderson said.
According to Anderson, in December 700 people submitted mortgage loan applications through his company. That's more than twice as many as December of 2007. According to data that number doesn't just consist of people who want to refinance their current loans. Half of those applications are for the purchase of a house.
The current interest rate for a conventional 30-year fixed mortgage is 5.1-percent. "It's a buyers market, so you're getting better value out there if you're a home buyer. Put that together with the lower interest rates and it gives you lower payments, better opportunity to buy real estate," said Anderson.
If all goes as planned, the Watsons will be able to close on their first home and move in on January 23rd.
If the current market trend continues, Anderson believes the housing industry slump in North Texas could be among the first in the nation to stabilize.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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