MORTGAGE RATE RALLY STALLS: Mortgage rates rose slightly as the bond market closed lower for the 2nd time in 8 weeks. The bond market finished down 34 bps on the week.
This affected interest rates by raising the cost to get each rate by about .25%. Par rates have remained steady for a number of weeks – right now they are just a bit more expensive. A 30 year fixed rate is still at 4.375%. 15 year fixed rate is at 3.75%. 5/1 ARM rate is at 2.875%.
Interest rates have seemed to hit their bottom. Rates will be tested this week with a lot of economic reports and information due out.
THE HOUSING NUMBERS: According to a new report from CORE LOGIC, 22.7% of all homeowners in the United States owe more on their mortgage than their home is worth. That translates to 10.9 million homeowners.
Another 2.5 million homeowners are very close to being underwater – having less than 5% equity in their home.
The state with the highest percentage is Nevada, with a staggering 63% of their homeowners being upside down. Arizona follows closely behind with 50% of their homeowners being upside down.
Remember that after 2012, you will be taxed on losses associated with a short sale or a foreclosure. If you are going to do it, you might as well get started.