What will 2010 Hold for First Time Home Buyers?

The attached San Jose Mercury News article chronicles an interview with the President of the California Association of Mortgage Brokers. In his interview Ed Smith gives his opinions regarding the effect that increasing interest rates will have on First Time Home Buyers. With inventory down and sales up we are seeing more first time home buyers being shut out of the market because many of them are looking to purchase lower priced entry level homes. Those same homes are the targets for investors who will typically come in with an all cash offer and squeeze out the would be First Time Home buyer who may be utilizing either an FHA or VA loan. In reading the article I believe that Mr. Smith’s perspective is right on the money and in line with what we have been blogging on ourselves.

Mercury News Interview: Ed Smith Jr., president of the California Association of Mortgage Professionals – San Jose Mercury News.