Friday, May 21, 2010

Mortgage Rates Near Historic Lows...As Housing Market Continues Deteriorating

The Greece / Eurozone crisis has pushed mortgage rates to 4.81, as investors flee to US Treasuries, just as mortgage applications drop to a 13 year low.

While that's an attractive rate, it's an ugly picture in the wider housing market:

One in 7 US mortgage holders is late on payment or in foreclosure - Reuters 

14% of mortgage holders late or in foreclosure - Marketwatch

Mortgage delinquencies drag on economic "recovery" - AP

Mortgage delinquencies by period and state - CalculatedRISK

Mortgage Mods Doomed By Back-End Debt - Realty Check

"Recovery" isn't the correct word - CNBC

Strategic Defaults Reach 31% - SNL


great time to rent said...

Buying at a lower interest rate means you sell into a higher rate. You take a loss even if housing prices remain stable.

craigger said...

That wouldn't always be true if you get lots of inflation and you have long term, fixed rate debt.

great time to rent said...

At some point there might be deflation. Not now. And not for the foreseeable future. Anyway, what does "long term" mean to a buyer now? Who really stays in a house for even 10 years if they're under 45?

That's why buying a house in this area is a crapshoot. You can't depend on staying in the house and being saved by inflation.

Buy now, lose money. Especially when you can rent a McMansion here for a couple grand.

Humpty said...

I have to be honest. I'm scared for our economy and country. This morning on CNBC Squack Box Senator Judd Gregg confirmed that Fannie and Freddie are in dire trouble and are financing over 90% of the current home lending. If and when this is addressed and passed to the private sector mortgage requirements will become more stringent. This will translate into a huge decline in prices that will take at least a decade to recover. SCARY!!!!!!!!!

Laura Morton said...

The country is in serious trouble financially. No one wants to speak the truth and say how bad it really is. Mortgage fraud is rampant. House prices are falling. Foreclosures are rising. Unemployment figures are around 9.7%. The deficit continues to grow. The stock market tanked.