Home Mortgage Refinance Loan Rates – Foreclosure Freeze and Crisis Hurting Home Prices as Rates Remain Low

Posted on | October 28, 2010 | No Comments

Most people have heard of the foreclosure freeze and crisis and it is important to understand that this process could end up hurting home prices in the long run. Eventually this foreclosure freeze will end which in turn will allow banks to complete foreclosure processes which will cause home prices to drop.


Fortunately, home mortgage refinance loan rates are at an all-time low as the 30 year fixed rate is around 4.2%. For homeowners who have a very good credit score and equity in their home there are great opportunities to save money by going to the refinance process. Even if the foreclosure freeze and crisis is dropping home prices it could be the case that homeowners can gain access to lower monthly payments.


Over the next several weeks it will be very interesting to see what happens when it comes to home prices and mortgage rates. It seems to be the case that as home prices drop mortgage rates continue to drop as well. The federal reserve bank has worked very hard to keep interest rates low until the economy recovers and it looks as if this will continue into the early part of 2011.

Author: Heather Best

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