I have to say, I am surprised how often I hear people saying that no one can get a mortgage anymore.
This is inaccurate. While some types of mortgage products are no longer available (such as a "stated" income, no documentation type loans) aren't done anymore, other products are available.
FHA loans are common, you only need 3.5% down payment, you don't need perfect credit, and you can finance up to 6% of your closing costs.
Other, conventional loans are available for those with good credit and provable income.
It is a fantastic time for first time buyers to purchase, rates are at record lows and I don't see how they can get any lower with the Federal Government bringing the Fed Rate down to 0-.25%. This is the interest rate that banks can borrow from one another. Since it can't get lower than 0, rates on mortgages are as low as they can get. For anyone who was waiting to try to catch the "bottom", this is probably it.
Rates are in the 4-5% range, depending on credit scores.
Home prices are at their lowest level in years too. Purchasing power is in the buyer's favor.
What about sellers? While your house probably isn't worth as much as it was 3 years ago, neither is the dream home you have been thinking about. If your $300,000 house is down 10% and is now worth $270,000 when you sell, the dream home that was $500,000 is also down 10% and you can buy it for $450,000! Also, don't forget, that new mortgage rate will probably be much lower than the one you are paying now!
So, it is a GREAT TIME TO BUY a home!
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