Buyers are Waiting

[missmanors]

The news that leaked out about the Treasury Department working on lowering loan rates for home buyers in the coming months have some buyers waiting to finalize home purchases. The prospective buyers want to hold off on the purchase of the homes until the interest rates are dropped to 4.5%.

Home buyers aren't wanting to gamble that they'll be locked into a rate of 5.5% if indeed they will be able to get the rate of 4.5%. This thinking is putting a damper on the sale of a lot of homes, as buyers play a "let's wait and see" game.

The 4.5% interest rate was proposed to help kick-start the housing market and therefore help the country's economy, but seems to have stalled the housing market - at least until the proposal is adopted by the Federal Reserve.

There is confusion among loan applicants and lenders, as details of the reduced interest rate are still sketchy. It's not known as of yet, who will be eligible for this loan rate.