Mortgage Rate Hike Hurts House Market
June 22, 2008
The recent hike in mortgage rates continues to hurt the beleaguered house market. In some programs, the rates have increased as much as 1 percent compared to just a few months ago. This can add an increase in monthly payment for a potential borrower of $80 per $100,000 in mortgage. This will likely act as putting on the brakes for any recovery in the real estate industry. Beyond just homes sales, the rate increase can also potentially affect foreclosures as well. If a homeowner that was on the edge of falling behind, wanted to refinance - he may not be able to do it now due to the higher mortgage rate, and would be forced to go into foreclosure.
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