home mortgages rates – US Home Mortgage Trends
US Home Mortgage Trends
Free Online Articles Directory
Why Submit Articles?
Top Authors
Top Articles
FAQ
ABAnswers
Publish Article
0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Login
Login via
Register
Hello
My Home
Sign Out
Email
Password
Remember me?
Lost Password?
Home Page > Finance > Real Estate > US Home Mortgage Trends
US Home Mortgage Trends
Posted: May 31, 2008 |Comments: 0
| Views: 631 |
]]>
The US home mortgage trend and the fluctuation of home mortgage rates are important benchmarks of the overall economy. While there are other other economic factors interest rates are largely tied to the decisions made by the Federal Reserve Bank. Interest rates are adjusted by the Fed according to financial matters in the US such as GDP growth, export and import numbers, and the inflation rate.
Mortgage rates are used to help control the economy. If the movement of the economy is considered to be too fast, higher rates are imposed so that individuals and corporations would be less willing to apply for loans. Conversely if the economy seems to be rather slow or stagnant, rates are lowered so that people would be more enticed to engage in additional business transactions. Thus home mortgage trends will generally move up or down as the economy contracts or expands.
Trend in Home Mortgage Rates:
It is interesting to observe that mortgage rates have been lower than 8.5% since the year 1996, with the lowest rates of about 5.5% seen in the middle of 2005. While individuals might see an extremely different mortgage rate at a particular time due to other factors that affect rates (their salaries or credit histories), the lower trend has generally been observed to be generally consistent throughout the US economy.
]]>
The fall of interest rates from higher levels prior to 1996 allowed more people to buy their homes, purchase lands, or trade up to larger houses. Perhaps this reflects an effort to speed up the economy from that time until now. However this year, mortgage rates are rising probably because of some unwise lending decisions made during a time of too easy money and rates held at extremely low levels by the Federal Reserve Bank for too long of a time period. A vicious correction is now underway with mortgage markets highly unsettled.
Current Home Mortgage Rates:
Mortgage rates in the year 2008 are generally higher than that of the previous year with rates of about 6.5 percent for 30-year fixed rate mortgages (FRM). The difference between interest rates this year and last year are not really significantly high as it would entail only a few hundred dollars increase in yearly payments. This probably would not stop many people from getting mortgages, however if the rise continues, you would expect that more people would become hesitant to apply for home loans.
The problem with the current trend in home mortgage rates is not so much an increase in rates but an unwillingness of leaders to lend, even to people with good credit histories. The trauma and losses to lenders caused by the ongoing sub prime mortgage debacle starting in 2007 has left many lenders with weak balance sheets and they are operating in a panic mode. A record level of foreclosures in 2008 is causing a sharp contraction in home mortgage lending activity.
With probably a few hundred billions of mortgage and derivative instrument write downs still to take place by mortgage lenders the trend for new home mortgage lending will probably remain down for some time to come. However, that is not all bad news for those looking for a new home. People who have cash to work with and a good relationship with their bank can probably find super deals on homes by working directly with stressed out lenders who have an excessive inventory of foreclosed homes on their books.
In fact, if you have significant cash on deposit with a bank or financial institution you may not even have to use it for your home purchase. Even with the home mortgage trend down lenders that have non performing loans on their books will be eager to work with those who have capital on deposit and may make deals that will require very little if any of the cash rich home buyers cash to be used as an extra inducement to get foreclosed homes off their books.
Start increasing your traffic today just by submitting articles with us, click here to get started.
Liked this article? Click here to publish it on your website or blog, it’s free and easy!
Gerald Greene -
About the Author:
Gerald “Taipan” Greene is a retired forex trader and portfolio manager who worked in Asia for over 20 years. The nickname was acquired in Hong Kong and is now used for a number of financial, political, and Internet business related blogs. One of them is at Home Loan Services
]]>
Questions and Answers
Ask our experts your Real Estate related questions here…
Ask
200 Characters left
What are points on a home mortgage?
Is there ANY help for homeowners with an FHA mortgage that are lucky enough to still have their jobs, not late on payments.. but are completely under water with their home values and just want to refi
I am 62 years old ,retired and a home owner with home owners insurane. Can I apply for a reverse mortgage loan or any other debt consolidation loan
Rate this Article
1
2
3
4
5
vote(s)
0 vote(s)
Feedback
Re-Publish
0) {
ch_selected = Math.floor(Math.random()*ch_queries.length);
if(ch_selected == ch_queries.length) ch_selected–;
ch_query = ch_queries[ch_selected];
}
}catch(e){
ch_query = document.title;
}
]]>
Source: http://www.articlesbase.com/real-estate-articles/us-home-mortgage-trends-433858.html
Article Tags:
home mortgage trends, home mortgage, home mortgage lending, mortgage lenders
Related Videos
Related Articles
Latest Real Estate Articles
More from Gerald Greene
Real Estate Tips Part 2/2
In this home video watchmojo finds out more about the housing crisis from a realtor point of view and whether it’s best to buy or rent, Part 2/2. (02:16)
Home Loan Mortgage Choices for your Next Home
Know the mortgage home loan choices before you get your next mortgage loan (04:20)
How to Lock Your Mortgage Rate Before Lender Hikes It
Video explains how to lock a fixed rate mortgage on a home loan currently in the application process before you are caught by surprise when a sudden home loan rate increase takes place. The video tutorial also introduces a new daily real-time mortgage rate alert service for home buyers and those refinancing their current mortgage. (01:48)
What Are Mortgage Points
If you’re looking to buy a home, you will need to know what mortgage points are. Doug Duncan, Sr. Vice President and Chief Economist at the Mortgage Bankers Association, provides insights. (00:41)
Learn about Mortgage Rates and Points
Video explains with examples why mortgage points matter. Points are what actually move each business day since the actual rate is always available. It’s just a matter of how much it will cost you to obtain the rate. The video tutorial also publicizes a new daily real-time mortgage rate alert service for home buyers and those refinancing their current mortgage. (02:19)
Mortgage Note for Sale – Home Sellers Turning To Seller Financing
It is widely understood that that the housing market is in a recession and the need for cash is great. Individuals, Small Businesses and corporations can’t get loans. There is pressure on prices in the housing market and traditional financing methods aren’t helping the situation. So what do you do? You look for alternative options to get the benefits that you want and you find Owner Financing as the best option.
By:
Robert E Youngl
Financel
Jul 16, 2010
Getting Professional Advice from a Mortgage Broker
You can get personalised advice on the best products for you, the current market state and market trends from a broker who hopefully has had at least a couple of years experience in the market.
By:
Chris Borthwickl
Finance>
Mortgagel
Jul 01, 2009
Locate The Current Best Mortgage Rate
Attaining the best mortgage rate is the topmost factor on everybody’s mind while applying for a mortgage. There are a number of mortgage brokers who are enthusiastic to grant you rewarding deals. There are also various mortgage brokers who can appear to demand less of you but have many unseen expenditures.
By:
Charlie Westl
Finance>
Loansl
Dec 22, 2009
Australian Mortgage Brokers and the Emergence of Refund Home Loans
Online mortgage brokers are known for the convenience and easier processing. Consumers can literally find everything they need to know about home loans in a mortgage broker’s website. Now another popular feature of online mortgages is the refund home loans. Most online mortgage brokers these days offer to share some of the commission they receive in the form of a refund. A customer will get a certain amount refund depending on the total amount of the loan. Refunds can prove to be useful especial
By:
Cash Back Mortgagel
Finance>
Mortgagel
Feb 01, 2011
Your Memphis Tennessee Dream Home
Now that you’ve decided to buy a home in the Memphis, Tennessee, determining what specific type of neighborhood or investment you’re interested in is a good place to start. List your space needs, including:
By:
Richard Hewittl
Home Improvementl
Oct 22, 2009
Hotel Apartments in Dubai: A Best Option to Stay
The most glittering star of Middle East, famous for being most visited by the tourists and business magnets of the universe, is Dubai. One can experience the combination of thrill of deserts along with the luxuries of city in this fabulous city.
By:
nicknelll
Finance>
Real Estatel
Aug 11, 2011
Real estate Jaipur: Get the Best one here
If you are new to investment business and wish to invest in property in Jaipur. Then this content shall help you well.
By:
rising starl
Finance>
Real Estatel
Aug 11, 2011
What ensures that Canary Wharf is an excellent region for work?
Most of the important companies are situated in Canary Wharf and obviously there are plenty of people who work there, that lets us examine why Canary Wharf is such an ideal area for work?
By:
Edward Nolanl
Finance>
Real Estatel
Aug 11, 2011
A few of the key reasons to acquire an office located in Marble Arch
Businesses move to a new location for a variety of reasons, whether it be the need for more floor space or because their old office isn’t stylish enough.
By:
Edward Nolanl
Finance>
Real Estatel
Aug 11, 2011
What Are Your Options While Choosing Rental Apartments In New York City?
It is not always easy to decide the location of the new apartment you wish to buy. Many people looking for new apartments need it on a rental basis, while there are others who want to purchase a new one.
By:
Sexysinglesdatel
Finance>
Real Estatel
Aug 11, 2011
What the Heck is Caralluma Fimbriata?
While Caralluma Fimbriata does not directly ease back pain the loss of weight, especially a protruding stomach (pot belly) can be a tremendous help in taking a load off of back muscles and in reducing back pain.
By:
Gerald Greenel
Sports and Fitness>
Weight Lossl
Sep 16, 2008
lViews: 443
Health Insurance Challenge for America. Can You Afford Coverage?
The challenge facing American with health care and health care insurance is that the costs have gone beyond the reach of many millions of Americans. The candidate who can meet the challenge of creating a workable health care plan in America should have a major edge in reaching the Whitehouse.
By:
Gerald Greenel
Healthl
Aug 31, 2008
lViews: 484
Where to Look for Outstanding Investments
It’s not only that the largest wealth transfer shift in the history of the world is taking place it’s the speed at which it is occurring that is unsettling from a Western point of view.
By:
Gerald Greenel
Finance>
Investingl
Aug 19, 2008
lViews: 248
Seek the Best Advice Before Starting Forex Trading
It is always best to increase leverage relative to experience and success. To use too much leverage and trade a large position just starting out might seriously deplete your capital with just one or two losing trades.
By:
Gerald Greenel
Finance>
Currency Tradingl
Jul 19, 2008
lViews: 399
Brazil Booms as Commodity Resources Pay Off Bigtime
In the near future, in a world starved for oil, Brazil will join the likes of Canada, Russia, Saudi Arabia, and Iran as an important oil exporter and cash magnet. The economic future of Brazil looks to be bright.
By:
Gerald Greenel
Finance>
Investingl
Jun 21, 2008
lViews: 503
Add new Comment
Your Name: *
Your Email:
Comment Body: *
Verification code:*
* Required fields
Submit
Your Articles Here
It’s Free and easy
Sign Up Today
Author Navigation
My Home
Publish Article
View/Edit Articles
View/Edit Q&A
Edit your Account
Manage Authors
Statistics Page
Personal RSS Builder
My Home
Edit your Account
Update Profile
View/Edit Q&A
Publish Article
Author Box
Gerald Greene has 16 articles online
Contact Author
Subscribe to RSS
Print article
Send to friend
Re-Publish article
Articles Categories
All Categories
Advertising
Arts & Entertainment
Automotive
Beauty
Business
Careers
Computers
Education
Finance
Food and Beverage
Health
Hobbies
Home and Family
Home Improvement
Internet
Law
Marketing
News and Society
Relationships
Self Improvement
Shopping
Spirituality
Sports and Fitness
Technology
Travel
Writing
Finance
Accounting
Banking
Credit
Currency Trading
Day Trading
Debt Consolidation
Insurance
Investing
Loans
Mortgage
Personal Finance
Real Estate
Taxes
Wealth Building
]]>
Need Help?
Contact Us
FAQ
Submit Articles
Editorial Guidelines
Blog
Site Links
Recent Articles
Top Authors
Top Articles
Find Articles
Site Map
Mobile Version
Webmasters
RSS Builder
RSS
Link to Us
Business Info
Advertising
Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2011 Free Articles by ArticlesBase.com, All rights reserved.
Gerald “Taipan” Greene is a retired forex trader and portfolio manager who worked in Asia for over 20 years. The nickname was acquired in Hong Kong and is now used for a number of financial, political, and Internet business related blogs. One of them is at Home Loan Services
