A recent article on MSNBC detailed the nation's struggling housing market, claiming that the reduced number of home sales is a result of tighter mortgage standards from lenders and declining home prices.
While lower prices can be attractive for potential homebuyers, the falling values may also be a deterrent for them, as they could result in an investment loss.
Also, with interest rates on mortgages having fallen considerably, hoping to spur more sales and revive the housing sector, an increasing number of lenders are now tightening their standards to weed out risky borrowers.
For potential homebuyers with good credit scores, the struggling market may not see any major improvements in the near future. Lenders look favorably upon consumers with healthy credit scores, and tend to offer lower interest rates.
For those waiting out the market's movements, improving credit scores during this period can potentially save money. Keeping old credit accounts open and making monthly payments consistently can effectively boost a credit score. Furthermore, maintaining a watchful eye on credit reports to ensure they only include items that were reported both fairly and accurately may be a key step to maintaining a clean credit standing.