The Real Estate and Lending industries are in fact going through a necessary correction. The industries became saturate with fly-by-night companies looking to make a quick but short monetary gain, without offering any real value.
Contrary to numerous reports in the media, mortgage funds are still readily available. The credit markets are tight, but it has yet to have any real significant impact on the availability of mortgage financing. Although 100% loans are all but gone, 3% down loans are still available, even for buyers with less than perfect credit. Most of the reports your are hearing about the rapidly disappearing mortgage products have to do with loan programs that were very common in coastal areas.
There has never been a better time to purchase real estate. With inventories at a higher than average level and extremely low interest rates this truly is a wonderful time to move-up or purchase a vacation home. For first-time home buyers there is a window of opportunity that has never before existed to take advantage of a $7500 tax credit.
Interest rates may be on the decline in the next few months. Economic conditions are ripe for improvement. Interest rates can and do move swiftly so it is imperative that your mortgage professional notify you of market conditions.