The cost of house and mortgage rates went down, why is it that owning a house is

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   alexandriaruthkposted 12 years ago

   The cost of house and mortgage rates went down, why is it that owning a house is still far fetched?
   
   The housing bubble in 2007 affected the US economy. Five years after, mortgage rates (interest) went down and the prices of houses are more affordable, still many people are renting and can't buy their own homes?
   
   What do you think is wrong, unstable economy where people don't have stable jobs, future uncertain, people have low credit scores or people just want to rent a place to stay since owning a house is not a good investment anymore.
   
   What are your thoughts about this?

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   Two Minute Reviewposted 12 years ago

   Home values might not be done falling in many areas just yet. People may not want to take the plunge on something so expensive if they think they will lose their shirt when they want to upgrade several years down the line. Like moving from a townhome to a single-family. Also, banks want outstanding credit scores these days also, making those low rates out of reach to those just starting out and with a short (or checkered) credit history.

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      alexandriaruthkposted 12 years agoin reply to this

      People are more cautious and banks I do agree are not that cooperative. They are safeguarding their business.

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   Greg Cremiaposted 12 years ago

   Not everybody is cut out to own a home. Some people have never learned how to be responsible which home ownership requires.

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      alexandriaruthkposted 12 years agoin reply to this

      I agree.

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   mrsgrayposted 12 years ago

   its far fetched i think because the banks are no long allowing anyone to get loans.  The bank policy's allowed credit score has risen while the average credit score has dropped. Or people are losing their jobs due to lay offs or medical, and the banks will not refinance to lower the interest rates with the change of times.  More and more banks are owning homes due to foreclosures because they are afraid or unable to help the people with their mortgages.  The american dream is no longer obtainable...its truly a sad situation.

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      alexandriaruthkposted 12 years agoin reply to this

      I agree with you about banks, they are difficult and even if interest rate goes down, it is still difficult to get a loan!

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