Although mortgage rates are at their lowest point in at least 40 years and the current 30 year rate is at about half of the historical average are loan rates boosting the home market?  These low rates are helping to jump start the housing market but there a few problems that are still keeping the market from coming back in full force.

• Many homeowners still cannot sell their homes as they owe more on their home than what they can sell it for so until prices really increase they are stuck where they are.
• Financing guidelines have really tightened up and in many cases banks are requiring higher down payments which many buyers do not have.
• With the tight lending practices, many buyers are unhappy that they cannot qualify for the amount of home they really want to buy.
• Lenders do not refinance loans on homes that are under water, so if you owe more than your home is worth and you cannot afford to make up the difference in cash you cannot refinance.
• The best interest rates are only available to those with excellent credit.

Overall the market is up and is continuing an upward trend but it will take time for everything to be back in balance.