Home Prices in US are Going Down

Obama administration efforts to revive housing include an $8,000 federal tax credit for first-time buyers who complete the transaction before Dec. 1, 2009. The government is now trying the best to regain the economical boost. So, for that the US government is offering lenders some incentives to modify the terms of delinquent mortgages, and the Federal Reserve is buying mortgage-backed securities to help reduce borrowing costs. All these steps are going to stable the US home and mortgage industry according to the national association  of home builder’s  Wells Fargo index are showing a record home sales in the second quarter of this month which is showing of nearly 72.3 percent of homes sold out. This 72.3 percent of homes sold to the families with the national median income of $64,000 a year.

Homeowners fall behind on their mortgage payments when they lose their jobs, and declining prices mean they can’t sell to pay off loans, the median U.S. home price fell 16 percent in the second quarter from a year earlier, the steepest drop on record, according to the National Association of Realtors. These rapidly change in home’s prices is creating a positive change in the US mortgage. This is a very positive change and this will help the home sale’s go higher and can play a major role of lifting up the US economy and people will be able to purchase their own homes!

Watch the video “California’s median home price down 40%”

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