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30 Year Fixed Mortgage Rates Slip as Foreclosure Filings Rise

 

Interest Rates Down
Recently rates on thirty year fixed mortgages declined to an average rate of about 5.03 percent, compared to last year's 6.13 percent. According to Freddie Mac, the decline in mortgage rates was due to the reports of a weakening job report and easing inflation concerns.

Foreclosure Rates Up
On the other hand, foreclosure filings throughout the nation climbed thirty percent over last year's level in February. While last year's mortgage crisis was a result of many subprime mortgages going bad, this increase has been attributed to more traditional economic troubles. In particular, the Labor Department released a nationwide jobless rate of 8.1 percent, the highest it has been in 25 years. Homeowners around the nation are still having a tough time dealing with the economy despite improving home loan rates. While the best mortgages may be available because of such low rates, many homeowners are simply having trouble refinancing their home loans. Unemployment makes it impossible to refinance for many, as mortgage lenders are unlikely to qualify borrowers unless household income qualifications are met.

Help for Some but not All
To help alleviate the situation, the government recently announced a series of mortgage plans to increase the number of loan modifications for those who cannot refinance. Specifically, the government has included lender incentives in hopes that mortgage lenders and borrowers can work more efficiently to modify existing home loans. But even with President Barack Obama's mortgage plan, many homeowners find themselves outside of the requirements to qualify for mortgage loan modifications. More specifically, one of the greatest housing concerns has been the sheer number of homeowners dealing with negative equity. Because of the rise of foreclosures, property values have taken a dive in many states, thus affecting a homeowners' loan to value ratio.

Refinance While You Can
On the other hand, if homeowners can meet lender qualifications, now may be a great time to refinance because of such low rates. However, it is strongly advised that individuals begin their mortgage search as early as possible. For potential home buyers and first time home owners, the government has also recently released a number of incentives which should stimulate activity in the near future.

In fact, new home buyers have been a primary concern as it will likely be their performance that rejuvenates the struggling housing market. In addition to looking for a home, new home buyers should also shop various lenders and take advantage of government incentives such as tax refunds and interest rate deductions.

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