House prices making mortgages more attainable...

Price declines for real estate nationwide are starting to make mortgage payments line up again with incomes. Especially in the Seattle market where sky high prices simply priced many would-be buyers out of the game. Now, low prices coupled with a few new incentives to entice buyers and stimulate the housing market are causing Seattle home buyers to get more serious. Home buying incentives:

• $8,000 first-time homebuyer tax credit of 2009
• Fannie Mae and Freddie Mac increasing the loan limits for larger loans. The limit increase -- from $506,000 to $567,500 in the Seattle area -- means people can get larger loans without entering the private jumbo mortgage market, where rates are much higher and standards much tougher than for conforming loans.
• Home prices in many parts of Seattle are back to 2006 prices.
• The Federal Reserve acting to keep rates low

Many mortgage professionals are hearing (yes, this is speculation) that rates will rise in the second half of 2009. Rising interest rates all but zero out any potential drop in home prices...possibly making the next 6 months one of the best times to buy a house in the greater Seattle area in quite some time.