Mortgage Rates at a Seven-Month High
It looks like wheedling in new buyers with low rates like bribing children with candy simply isn’t working for mortgage providers. In fact, they seem to have given up on the strategy completely, as evidenced by yet another hike in mortgage rates this week.
Rates are now the highest they have been seven months, with the average 30-year fixed-rate mortgage at 5.59% and 15-year fixed-rate mortgages at 5.06%. Both of these numbers are still lower than last year’s rates at the same time.
Foreclosure Count Hits One Million
The count as of today is actually higher than one million–an unprecedented number in the United States up to this point. It’s even estimated to exceed two million by year’s end–and up to 9 million by 2012.
Sure, the Obama Administration has helped over 55,000 homeowners so far; but the Center for Responsible Lending estimates that there are 6,500 new foreclosures filed daily–or one every 13 seconds. These aren’t great odds in the least. (more…)
Mortgage Rates on the Rise
During the last week, mortgage rates have risen a half-point, the highest they have been since November. This may not sound like much. But that half-point can mean a few hundred dollars per month on a homeowner’s bill.
It’s no wonder that over 5% of borrowers are now behind on their payments–and have been for two months or more. And if rates keep moving on up, ability to pay will certainly decrease at a similar steady rate.
New Incentives for Mortgage Modifications
The U.S. Treasury continues to push for homeowner assistance programs. New incentives are now being provided for lenders who agree to modify mortgages with severe home-price deadlines, as well as pursuing “short sales,” which allow the homeowner to sell their property quickly, but for less than the balance owed.
In order to increase anti-foreclosure methods, the government is hoping that these measures will help stabilize the housing market and aid in overall economic recovery.
Job Loss Protection Program to Help New Buyers
Incentives for buying homes are coming out of the woodwork like pre-inspection termites, and Realty USA of Clifton Park, New York is getting in on the frenzy.
Buyers will receive an insurance policy–paid for by a one-time $500 fee at the seller’s expense–to cover mortgage bills in the case of involuntary job loss or economic hardship.
Up to $1,800 in mortgage bills, for up to six months, will be available for coverage under the company’s Job Loss Protection Program. (more…)