Home Builders are Feeling Better About the Economy

According to industry surveys and activity levels, home builders in the U.S. are feeling more confident about the housing market. Building activity is up, and builder expectations are also positive.

In some cities, the bottom of the housing market might still be many months away. But home builders across the country are showing signs of increased confidence -- and activity. The Housing Market Index (which measures new homes sales as well as expected sales) rose by more than 50% in the first part of April 2009. That's the largest increase since 2003.

What does this mean to buyers? For one thing, it's a sign of increased activity in the housing market. More would-be home buyers are coming out of their "wait and see" mode to make purchases. This increased activity is partly what's fueling the rise in builder confidence and housing starts. It also means that many housing markets will be hitting bottom (and starting to recover) in coming months.

In other words, now is a good time to buy for many folks. Interest rates are still at record lows, home prices are low but leveling off, and you can still qualify for the first-time home buyer tax credit of up to $8,000.

Where Does a Home Buyer Begin?

Okay, so it's a good time to buy a home right now. But where does a first-time home buyer begin? What are the first steps to be taken with this process? A lot of first-time buyers become confused to the point of paralysis, and have no idea what to do first. Here are some things you should square away, listed in order (more or less):

1. Review the home buying steps listed in this article. This will give you a better understanding of how the process works.
2. Start saving your cash. You'll need it to cover your down payment and the closing costs associated with your mortgage loan.
3. Check your credit score. This is a big part of the mortgage qualification process, so you'll want to know where you stand as soon as possible (and make improvements as needed).
4. Determine your home buying budget -- and stick to it! There are a lot of people in foreclosure right now because they bought more house than they could afford. See this article: How much mortgage can I afford?
5. Once you have (A) researched the home buying process, (B) determined your budget, and (C) started saving cash, it's time to move forward. This means shopping for homes and mortgage loans. We have tools on the main website to help you get home loan quotes online.
   

We will continue to bring you the latest housing news, as well as tips on the home buying process. Just remember, if you're in the market for a new home, now is a good time for buying.