How to buy a house in today's tough economy? Americans would make President Barack Obama very happy if everyone would buy a house to help the country get out of the recession. But with the state of the economy, people are being laid off and salaries are being cut. People are in fact losing their homes, almost 9 million Americans. Some people have seen loans far out weigh the value of their homes in the new upside down housing market.

Still, Americans can buy a house in today's economy. The recession seems to be lessening with the President's $787 billion stimulus packages and the $275 billion housing restructuring plan.  These government programs  seems to be effecting the economy in a positive way. Banks with the Federal Reserve bailout of trillions of dollars are beginning to make a profit such as CitiBank and the Bank of America.

For Americans who did not lose their jobs or was able to get work from the $787 billion stimulus package that was to create 3.5 million of jobs, there is good advice as reported in the April edition of Business Week on buying a home in today's economy.

The magazine reports that home sales are showing signs of revival. Interest rates are declining because of the government's financial help of guaranteeing home loans insured through Fannie Mac and Freddie Mae. The assistance programs are only available for first time home buyers. The Federal Reserve input into the economy has forced the interest rates of homes to decline. The national mortage rate on a thirty year loan is as low as 4.85% nationwide. That is the lowest mortgage rate in over 38 years. New home buyers are attracted to the lower interest rates and are beginning to buy homes at record numbers.

Mortgage experts are saying that if a family buys in today's market, their mortgage payment will be less than renting especially in the cities of Los Angeles, Las Vegas, Phoenix and Tampa. President Barack Obama's $275 billion Housing and Restructuring bill will have an impact on the housing market beginning in June of 2009. Loan modifications as well as new mortgage loans will boost the economy as is the purpose of the federal housing programs.

Unless the government can continue to shovel money into the housing market, the stimulus will lax and more money will have to be poured into the economy. That indicates that the families who are proactive and  able to get their credit scores up and can afford a new home are the ones who will benefit from these myriad of housing programs.

However, the economic state of the country is still putting unneeded stress on the housing market.Fifty four million Americans are out of work with an unemployment rate up to 8.5%. These economic indicators  denotes that the foreclosure rate has not turned around yet. Banks may be sitting on as many as 600,000 housing waiting for the market to change, Business Week reports.

Housing prices however could continue to fall as much as 20%. But if the homebuyers are in foreclosures, they will not be able to buy a house for another seven years. BusinessWeek states that things could work out because national inventories of new and existing homes are shrinking meaning that Americans are still buying homes. The optimistic outlook is that the government is helping new home buyers, mortgages rates are falling and the price of new and existing homes are declining as well.