Why Mortgage Rates Won’t Be Going Down…..
by Tom on May 27, 2009
in Market Musings, Mortgage Rate Updates
Diana from Housing Wire has the story on mortgage delinquencies which tells me why mortgage rates won’t be going down any time soon. Let me spell it out for you:
- Delinquencies are up by 43% from a year ago.
- The trend is permeated all “ranges” in the market.
Now ask yourself, if you are a major investor (say, China?) and had the opportunity to invest a lot of money, would you want to put it in investments where the collateral is losing value and the delinquency rates are skyrocketing? Not without a little extra return, you wouldn’t.
I expect that we’re going to see additional and gradual upward pressure on rates as the Fed fights the market forces to make housing affordable.
Tom Vanderwell
Delinquencies up 43% from 2008 : HousingWire || financial news for the mortgage market
Total mortgage delinquencies rose slightly in April to 8.1%, according to a monthly report published by Lender Processing Services (LPS: 29.83 -0.80%). The figure represents a 2.8% increase from March and is up 43% from the same time last year.New delinquencies rose again in April, while the volume of loans moving to a more delinquent status has increased in each category: current to 30-days delinquent, 60-days delinquent to 90-days delinquent, and 90-days delinquent to foreclosure. In April, the percentage of loans rolling from current to 30-days delinquent is higher than in the same month during the preceding four years.
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