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

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Not so, said Steve owner of and 2009 presidentr ofthe . “What we’re seeingt out in the marketplace isa pent-up deman for properties once they get to a price that consumers feel is the righ place. We’ve got a great outlookk for ’09.” Besides having the salesman’ persistent optimism, Havig has some factords to back up his confidencew in the realestate market. Interesg rates, which have dipped into the mid-4 percentr range for some borrowers, are at 60-yead lows. loans, which make home ownership possiblde formany first-time buyers because they require only 3.5 percentt down, are easier to get than they used to be.
And there’sd a huge inventory of nice homed at excellent prices onthe market. “I was out on the streeft today and I saw 24 Realtoropen houses,” said Havihg on a recent Monday afternoon. “The market has already started forthis year. The unofficial starft is after SuperBowl Sunday, but this because of the low interesgt rates, it’s already started.” The historicallyt low interest rates have kept the mortgage lending industry busy, too, and that should continue into 2009, said Alex a mortgage banker for in Minnetonka.
That meanas turnaround time for peopled seeking mortgages and refinances will slow as mortgagw lenders struggle to keep up with Borrower guidelines will continuwto tighten; a borrower’s credit quality will need to be and down-payment requirements will continue to be a stumbling block for some potential homeowners. What that really means is that the eraof get-it-when-you-want-it real estat e is over, and that shift will come to fruitioh in 2009. “If your credit score is below 720, if you don’t have the down you should prepare topotentiallg wait,” Stenback said.