Mortgage Rates Up, But Opportunities Still Everywhere

People hunting for bargains flocking to the market in huge numbers to acquire hugely undervalued real estate resulting from the housing crisis. People are obtaining these properties from one of two sources: 1) directly from the banks that have real estate properties, or 2) from homeowners facing foreclosure. The real estate markets are experiencing a huge spike in sales volume, especially in the Midwest where the volume of pending home sales have increased 13%. Most of the activity is taking place where double digit price declines have occurred, due to the great opportunity of acquiring greatly undervalued property for up to 25% to 30% less than they would otherwise have had to pay.

Real estate deals are increasing throughout the country as individuals try to make some great long term investments by purchasing real estate. Many economists speculate that this recent spike of real estate deals is helping to bottom out the real estate crisis. On the other hand however, due to the positive findings of this the reports this morning, the dollar has increased in value compared to the euro and the yen. Unfortunately though, bonds have fallen below 4% this morning (a ten year low), which has resulted in mortgage rates going up.

If your goal is to acquire real estate at bargain prices (25% to 30% off their full value), then the increase mortgage rates does not seem so bad. If you take into account all of the variables (your purchase price versus the market value), you will still find that you are getting a great deal if the discount is double digits.

Amidst the real estate crisis, you should be aware that a lot of people are making very handsome profits for themselves in the foreclosure market. All kinds of people (all the way from trash out companies to REO specialists) are making money simply because they see the opportunities. You should begin doing some research where you live, to see if there are opportunities to make money by purchasing a property on foreclosure or buying a property at a steep discount.