Mortgage Rates Inch Above 5%
Mortgage rates on 30-year fixed loans moved above 5% this week, according to a Freddie Mac report, up from 4.81% last week, reaching the highest level since April 2010. The home market is already up against a number of challenges -- and now mortgage rates may be among them.
Research firm RealtyTrac recently reported that foreclosures remain stubbornly high. Standard & Poor's has forecasthome prices could drop another 7% to 10% this this year. If that is so, the value of homes in many areas will have dropped over 50% from the 2006 peak. Hard hit states like Nevada may have experienced drops closer to 70% over the same period.
Home mortgage rates are still near historic lows, so buyers may decide to purchase houses before interest rates get much higher. But many people in the market will assume rates will drop again and make housing more affordable. The slight upward tick in inflation will make that scenario less likely.
Read more at DailyFinance.com.
For more on mortgages and related topics see these AOL Real Estateguides:
- Stop Foreclosure Scammers Before They Scam You
- How to Get a Low Mortgage Rate
- Mortgage Jargon in Simple Terms
- How Much Home Can I Afford?
- How to Buy Foreclosures
- Closing Costs: How Much to Budget
- Guide to Settlement and Escrow