mortgage rates are still rising nationwide, in spite of demand and sales dropping through the floor. Rates of interest on major mortgage products have been increasing steadily for the past few months, though the rates are still near record lows. The ongoing foreclosure controversy, as well as other factors, is keeping the real estate market from fully recovering. Article resource – Mortgage rates rise despite crippled demand for housing by MoneyBlogNewz.
Demand not there for inexpensive housing
Even some of the cheapest real estate on record can’t seem to boost sales. Recent housing data revealed new home sales and existing home sales fell during Feb.. Interest rates on mortgage rates are climbing since hitting near-record lows in the fall of 2010, according to USA Today. The nationwide average rate on 30-year, fixed-rate mortgages reached 4.81 percent on Thursday, March 24, an increase of 0.05 percent in a week. About 4.04 is the average 15-year fixed rate mortgage. The 30-year fixed rate mortgage was at 4.17 percent in November 2010 while the 15 year hit 3.97 percent.
Issues with foreclosure legality continue
The foreclosure legal problem is nevertheless there. This "robo-signing" is one individual’s are nevertheless concerned about. The same day loans were being handed out by mortgage loan providers which were attempting to rush foreclosure paperwork. All 50 state attorneys general and many agencies part of the federal government looked into this with investigation. Banks and mortgage lenders involved in the scandal are still struggling to secure a settlement with the states and the federal government, and some government agencies are seeking to create their own settlement to bypass the process, according to Reuters.
Not a good future for real estate
A settlement will eventually be reached starting thousands of foreclosures and home evictions. many have simply been waiting for the settlement to occur. Evicting thousands of people will likely boost the payday advances industry as former homeowners scramble for money to cover moving expenditures. The banking industry may end up paying tens of billions due to the foreclosure issues no matter what the settlements or fines turn out to be, reports Fortune. Everyone who can get access to the credit to buy a home will benefit from doing so sooner rather than later. Demand and sales are very low, and fewer new homes are being built. The foreclosure mess has only made things worse, and the housing industry isn't going to recuperate until prospective buyers are able to buy homes again.
Articles cited
USA Today
usatoday.com/money/economy/housing/2011-03-24-mortgage-rates.htm
Reuters
reuters.com/article/2011/03/24/us-usa-foreclosures-occ-idUSTRE72N5H020110324?pageNumber=1
Fortune
finance.fortune.cnn.com/2011/03/24/foreclosure-vote-could-rock-the-banks/
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