Current Mortgage Rates And Housing Market News Recap

Posted by  on Apr 01, 2010

Lowest Mortgage Rates Hold Steady At Low 5%

In the second week of August, the best mortgage rates being offered for 30 year fixed rate home loans ranged between 5.125% and 5.375%. The Federal Open Market Committee also concluded their most recent meeting and, unsurprisingly, kept the current Federal Funds Rate unchanged at 0 to 0.25 percent.While this rate is more meaningful to home equity loans and lines of credit, it is still an important indicator that mortgage rate watchers should pay attention to.

Among the FOMC's meeting discussion, the overall tone of conversation seemed to indicate that consumers alone will not be the curing factor for this economy's recession. Due to ongoing job losses and constrained growth in monthly incomes, there have been fewer hopes for an increase in household spending. While such news and economic data may be disappointing, borrowers should also remember that mortgage rates typically improve in a weaker economy.

Foreclosures Continue To Rise In The Month Of July

According to data collected by RealtyTrac, foreclosure filings in the U.S. jumped 32% in July compared to last year's figures, and increased by 7% when compared to the previous month of June. Interestingly, this data also comes at a time when homeowners saw record low mortgage rates of about 4.625% during the second week of April. Within the report, Nevada, California, Florida, and Arizona were home to 57% of the country's total foreclosure activity.

While adjustable mortgage rates and toxic mortgages have taken their toll on many homeowners, borrowers are now seeing the more traditional factors of job losses and reduced incomes contribute to the growing number of foreclosures. And since declining home equity has plagued most of the nation, even the most qualified borrowers are having trouble refinancing and taking advantage of lower mortgage rates.

Where Exactly Are Home Prices Rising? Are We Near The Housing 'Bottom'?

Among the recent real estate reports, some media outlets have reported seeing some areas showing surprising gains in property values. While optimists often choose to report month-month gains, the National Association of Realtors did release a convincing list of a few metro markets showing year over year gains. Some of these gains were found in specific areas of Maryland, Texas, Idaho, and even parts of New York. The gains ranged anywhere from 1% to a substantial 21.7% and 30.6% in Cumberland, MD and Davenport, IA respectively. Speculators are paying very heavy attention to such data since increasing home sales and prices will likely give this economy the momentum to revive itself.

In most cases, comparing mortgage lenders and evaluating mortgage quotes online will help you get better mortgage rates. But interestingly, borrowers should focus more on finding a professional who can help them qualify for a mortgage since lending standards have tightened, while lower mortgage rates seem to be holding steady.


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