According to numbers released by CoreLogic, about 22.3% of homeowners with mortgages were underwater at the end of the second quarter this year. This number is still high, but it is down from 23.7% at the end of the first quarter of the year.
On the positive side, 1.3 million borrowers moved to being above water on their mortgages in the first half of the year but still 27% of mortgage holders were considered to be underwater or near underwater at the end of the first half of the year.
Another interesting fact is that people that purchased a home for under $200,000 are the most underwater on their mortgages with 32% while only 17% of people with homes purchased over $200,000 are upside down on their mortgages.
According to CoreLogic, just another 5% increase in home sales prices would dramatically lower the amount of homeowners that are underwater on their mortgages.
Among the new guidelines, home owners will be able to sell their home in a short sale even if they are current on their mortgage, assuming they can prove a hardship. Eligible hardships often include death of a borrower or co-borrower, divorce, disability, or job relocation (such as a job transfer or new employment 50 miles away from their current home). (more…)
Mortgage rates continue to fall and continue to break records! The average 30 year rate on a mortgage was 3.56% which is down from 3.62% last week and is the lowest rate ever since they started offering long term mortgages in the 1950’s. The 30 year mortgage rate has matched or beaten record levels for 11 of the last 12 weeks! The 15 year rate fell as well to 2.86% down from 2.89% the week before.
Although the mortgage rates are phenomenal, many buyers are having trouble coming up with a large enough down payment or are having trouble with the stringent lending requirements.
If you have lost your equity or even lost your home in the housing market crash, now is a great time to start fresh and climb back out of the mess. Right now the housing market is starting to pick up and mortgage interest rates are still historically low which gives homeowners several options. (more…)