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.
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.
Record High for Mortgage Delinquencies
During the first quarter, there were a record number of mortgage delinquencies this year–the highest, at least, since surveys of mortgage payments were established in 1972.
Though the government has been making valiant efforts to curb the crisis, it seems that job losses are simply stronger than the government. Even so-called reliable borrowers with the best credit ratings are experiencing difficulty with payments–and even foreclosure.
The delinquency rate overall is just over 12%. At this time last year, it was 8%. (more…)