Recent lowering of down payments required and the lowering of mortgage insurance rates as well as some other adjustments to the mortgage application process such as money coming from a relative, are easing the ability of some buyers to get a mortgage. This is good for the real estate market to open this segment.  The question is inventory of homes at affordable prices available. We have seen different segments help the real estate market rebound. It is now time and the first and second time homebuyers are needed to further help the real estate market. The market has recovered some of its losses but there is still plenty of room for improvement. If the Fed Raises interest rate in the middle of the year I do not think the increase will be significant however it does pay to lock in a rate and make a purchase will they are at historical lows.

"Things are looking better for home buyers and refinancers," not just in the loosening of underwriting requirements but also in the cost of credit, says Brad Blackwell, executive vice president of Wells Fargo Home Mortgage.