Be Part Of The Economic Solution

The latest economic reports this week were not very encouraging but I want to remind you that this is Austin, Texas.

Texas has the strongest economy in the United States with all the major metro areas reporting job growth and lower unemployment rates. Dallas-Fort Worth, Houston, Austin and San Antonio (in that order) were named in the top 10 cities to resist a recession a few months ago by Forbes.com. Since that time, the economic reports for these metro areas has remained stable or imporved. Dallas alone has experienced the highest job growth of any city in the nation.

The Austin real estate market experiened a slower market in 2007 and the beginning of 2008 over the blockbuster year of 2006. However, home values did not decrease. Austin, Texas home values have remained stable or increased. Home sales began rebounding in April 2008, although it is still a buyer's market with a large inventory of homes.

There is so much positive news (nationwide) that is not widely reported and there is an upside to every downside report, especially here in Texas . Ninety percent of the members of the National Association of Business Economics are reporting that there will not be a recession and the economy will experience growth, albeit a slow growth. "Corporate America" may not be making the same profits as last year, but corporations reported profits in excess of 1.5 trillion dollars in the last quarter.

Do not let the media or the fear of "things to come" rob you of the opportunity to own your own home. Austin home prices are still affordable and mortgage interest rates are still lower than last year's rates.

If you do not have perfect credit or a 20% down payment, there is still a loan option for you - FHA. FHA offers fixed interest rates (some of the lowest on the mortgage market). FHA also offers flexible guidelines with regard to credit. FHA has recently increased their loan limits (expires 12/31/2008 ) which could increase your purchasing ability. FHA also offers home loans with only 3% down required; part of these funds can be in the form of a gift from a family member, a down payment assistance program or the seller.

Get a step ahead of the inevitable inflation that will come into play in the years ahead. Now is the time to determine what your housing budget will be for the next 15-30 years. When you choose a fixed mortgage rate, your house payment will not change. Inflation has not yet affected the real estate market. Once your home is paid off (a 30 year loan can be paid off in as little as 15 years without a major blow to the budget), you will be living rent free in a home that has more than doubled in value.

According to the experts, as the U.S. housing market improves, so will consumer confidence and the weakening dollar. Be part of the national economy recovery; become a homeowner. One of the best markets to invest in is the Austin real estate market.