The news has been focusing on the difficulties in the subprime mortgage market and more recently on "jumbo" loans. However, borrowers with good credit scores, good jobs, and a down payment, still have ready access to 30-year "conforming" loans -- those funded through banks and mortgage brokerages by Fannie Mae and Freddie Mac, the giant federally chartered companies that fund the bulk of the nation's mortgages.

The large inventory of homes for sale right now gives buyers more to choose from and a greater capacity for negotiation. This inventory includes new homes left over from the housing expansion over the last few years and the home resale market. Builders have cut back in producing new homes due to the problems with the subprime mortgage market and are working down their present inventories. David Seiders, chief economist of the National Association of Home Builders, expects that new-home sales will stabilize by the end of this year, and housing starts will start to grow again by mid-2008. He felt that in spite of the present difficulty in the subprime mortgage market, the overall economy will continue " to be supportive of housing" and that "interest rates in government-related components of the mortgage market will remain favorable on a historical basis."

Real estate still remains one of the best performing and consistent long-term investments. The many housing choices available and low interest rates make it a positive time to be the buyer.

For a free consultation to discuss which type of mortgage loan will work best for you, call Victoria Spannaus at Wachovia Mortgage Corp. at (800) 741-7813 or 910-692-6225.