This cycle is the almost the best time to buy a house using a home mortgage loan. The housing market is grinding to a halt and mortgage rates are falling almost on a quarterly basis. Home buyers will firstly get the extra leverage from having a soft real estate market so they can negotiate harder for their property. Obtaining a mortgage loan will also turn out to be cheaper as we are currently in a trend of decreasing rates.

Since the credit crunch experience in August 2007, those looking for mortgage loans have much to look forward to with a situation of reduced mortgage loan rates in the immediate future. The first action by the Federal Reserve was to reduce rates by 50 basis points which firstly show the magnitude of the credit crunch on the state of the economy.

The first benefit to this is that the immediate rates for variable home mortgage rates will experience a decrease meaning almost immediately home owners will enjoy the affects of this rate reduction through a reduction in their monthly mortgage commitments to their lenders.

The second longer term benefit is that mortgage loan holders with variable rates will enjoy the current market climate with the rate reductions. The way things are looking, rates will continue to drop as the Federal Reserve tries to keep the US economy from going into a recession. This is in an environment where inflationary pressure is low so rate drops won’t have to be highly balanced to cover for inflationary fears.

One problem that the credit squeeze has created is that home mortgage loans are actually harder to obtain now. This is because of the tightening process after the number of defaults sky-rocketed. Because of this, homeowners need to have much better credit histories and FICO scores to actually qualify for loans.

As mentioned earlier from now to probably 2-3 years down the road are the best times to get yourself the house that you have always wanted. The conditions are right for those looking for houses to strike while the iron is hot.