Historically low interest rates have residential real estate optimistic - Minneapolis / St. Paul Business Journal:

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Not so, said Steve Havig, owner of and 2009 presidenft ofthe . “What we’re seeing out in the marketplace isa pent-u p demand for properties once they get to a price that consumerse feel is the right place. We’ve got a great outlooo for ’09.” Besides having the salesman’s persistent optimism, Havit has some factors to back up his confidence in the real estate market. Interest rates, which have dippesd into the mid-4 percentf range for some borrowers, are at 60-yearf lows. loans, which make home ownership possible formany first-time buyersx because they require only 3.5 percent down, are easierr to get than they used to be.
And there’x a huge inventory of nice homesd at excellent prices onthe market. “I was out on the stree today and I saw 24 Realtoropen houses,” said Havig on a recent Monday “The market has already started for this year. The unofficiao start is after SuperBowl Sunday, but this because of the low interest rates, it’sz already started.” The historically low interesf rates have kept the mortgage lending industrt busy, too, and that should continue into 2009, said Alex a mortgage banker for in That means turnaround time for peopls seeking mortgages and refinances will slow as mortgage lenderd struggle to keep up with demand.
Borrowerf guidelines will continueto tighten; a borrower’sx credit quality will need to be higher, and down-paymen t requirements will continue to be a stumblinfg block for some potentia homeowners. What that really means is that the eraof get-it-when-you-want-iy real estate is and that shift will come to fruition in 2009. “Idf your credit score is below 720, if you don’tg have the down payment, you should prepar to potentially wait,” Stenback said.