Subprime Blogger

Your Mortgage News Source

How High Will Mortgage Rates Go?

Posted on | June 13, 2009 | 5 Comments

Please make sure to keep up with daily mortgage rates through Subprime Blogger.  There are also several useful articles on home loan modification.

How high will mortgage rates go is a question that almost every home owner is wondering right now.  Over the last three weeks mortgage rates have gone from 4.8% to 5.59%.  Some nationwide mortgage lenders are reporting rates as high as 5.95%.  This is a very scary thought if you were in the refinance process.  It is an even scarier thought if you are planning to buy a house in the next few months.  The difference in a percentage point on a 30 year fixed rate mortgage could be tens of thousands of dollars over the lifetime of the home loan.

Another major area of concern are those trying to get a home loan modification to stay in their homes.  President Obama created the Making Home Affordable plan in an effort to allow everyone access to low mortgage rates.  Well, what if mortgage rates are no longer low?  For those that cannot make their mortgage payments and were hoping to modify to low payments, higher mortgage rates might be the nail in the coffin.  Mortgage lenders and banks will still work with these individuals but there is nothing the financial institutions can do if rates are moving higher.

I personally feel that the fluctuation in mortgage rates is very bad news for the overall housing market.  When mortgage rates were near historical lows, we still did not see a bottom in home prices.  Now that mortgage rates are going higher, home prices are sure to fall even more.  Maybe this is just what we need, a final freefall in home prices that will clear out all the excess supply.  It is a very scary thought, but sometimes its easier to just rip the bandaid off rather than slowly pulling it as we have been for over a year now.

Category: Mortgage Rate Predictions, housing market
Tags: > > >

Comments

5 Responses to “How High Will Mortgage Rates Go?”

  1. » Subprime Blogger / How High Will Mortgage Rates Go? » Mortgage Lenders in US
    June 13th, 2009 @ 9:22 am

    [...] news by admin « How to know which mortgage lenders to stay away from? | Financial [...]

  2. Mortgage online » Blog Archive » Subprime Blogger / How High Will Mortgage Rates Go?
    June 13th, 2009 @ 12:45 pm

    [...] is the original: Subprime Blogger / How High Will Mortgage Rates Go? This entry was posted on Saturday, June 13th, 2009 at 9:39 am and is filed under [...]

  3. » Subprime Blogger / How High Will Mortgage Rates Go? » Subprime Mortgage Refinance
    June 14th, 2009 @ 7:34 am

    [...] news by admin « Reverse Mortgages: Destined to be the Next Subprime Meltdown? Subprime Blogger / [...]

  4. Loan Modifications help
    June 14th, 2009 @ 12:06 pm

    I believe the best way to get lower monthly payments is to get help from a lawyer who can renegotiate your terms with the lender. They are highly trained professionals who know how to negotiate in your favor.

  5. Latest Mortgage news - Subprime Blogger / How High Wi | Reel Tourz
    July 9th, 2009 @ 9:05 pm

    [...] Subprime Blogger / How High Will Mortgage Rates Go? [...]

Leave a Reply





    • Subprime Blogger is Digg proof thanks to caching by WP Super Cache!