Posted By Pete Hill
The chance of securing a mortgage rate below 5% has increased. This is because the mortgage rates have fallen for six straight weeks now. Homeowners have received a boost from both the tax credit and the lower rates last year, the average 30-year fixed mortgage rate was 6.2%.
However, Despite signs of broader economic recovery, a number of foreclosure filings hit a record high in the third quarter. During that time, 937,840 homes received a foreclosure letter, with Nevada being the state hit the worst and Vermont impacted the least.
According to Sharga, “The foreclosure crisis may not diminish anytime soon. The fastest growing area is in the 180 days late-plus category, the most seriously delinquent borrowers. It's going to be a lingering problem."
As a solution, some people want to have an $8000 tax credit be implemented. They believe this would boost the home sales, create jobs, and stabilize prices. However, some critics believe that it would just be a costly, temporary fix.
Sources:
http://money.cnn.com/2009/10/14/news/economy/home_buyer_tax_credit_extension/index.htm?postversion=2009101417
http://money.cnn.com/2009/10/15/real_estate/foreclosure_crisis_deepens/index.htm?postversion=2009101507
http://money.cnn.com/2009/10/08/real_estate/mortgage_rates/index.htm?postversion=2009100813
The chance of securing a mortgage rate below 5% has increased. This is because the mortgage rates have fallen for six straight weeks now. Homeowners have received a boost from both the tax credit and the lower rates last year, the average 30-year fixed mortgage rate was 6.2%.
However, Despite signs of broader economic recovery, a number of foreclosure filings hit a record high in the third quarter. During that time, 937,840 homes received a foreclosure letter, with Nevada being the state hit the worst and Vermont impacted the least.
According to Sharga, “The foreclosure crisis may not diminish anytime soon. The fastest growing area is in the 180 days late-plus category, the most seriously delinquent borrowers. It's going to be a lingering problem."
As a solution, some people want to have an $8000 tax credit be implemented. They believe this would boost the home sales, create jobs, and stabilize prices. However, some critics believe that it would just be a costly, temporary fix.
Sources:
http://money.cnn.com/2009/10/14/news/economy/home_buyer_tax_credit_extension/index.htm?postversion=2009101417
http://money.cnn.com/2009/10/15/real_estate/foreclosure_crisis_deepens/index.htm?postversion=2009101507
http://money.cnn.com/2009/10/08/real_estate/mortgage_rates/index.htm?postversion=2009100813
Although Ben Bernanke stated that the recession is over, it is sure to take a while for the housing market to recover.
ReplyDelete-Lindsey Connell