Random Musings About The Mortgage Market

If you haven’t been following the recent turmoil in the housing industry and rise and fall of the mortgage rates then you have truly been living under a rock. That’s okay though, if you’ve had other things on your mind or just didn’t care what was and still is going on I will attempt to fill you in right here. First off the housing markets took a huge hit last year with well-recognized mortgage companies specializing in subprime lending going bankrupt. This, in part was due to people defaulting on their loans, which is why subprime lending is a high-risk to begin with. Now there are talks in the U.S. about foreclosure proceedings topping the amount of homes sold in certain parts of the country. This is just amazing to me if you consider just two years ago the amount of mortgage loans being underwritten was at a phenomenal figure. Analysts call this the housing bubble that popped and some experts say it hasn’t popped all the way yet.

With the Fed recently dropping the Prime rate by .50% the current national average 30-yr fixed rate is 6.24% at the time of this writing. Who knows where all of this will lead, but to tell you the truth I believe the housing market will come back stronger than ever and with the current low rates you may want to consider taking advantage of it now before they go back up again and getting a Free Mortgage Quote

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March 3, 2008 | Filed Under Random Musings