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Kiss 4% Mortgage Rates Goodbye!

NEW YORK (CNNMoney.com) -- The era of near 4% mortgage rates has ended after a quick rate rise since early November. But some industry experts think that may be a good thing for the flagging housing market.

The average 30-year fixed mortgage rate has risen to 4.86% from 4.17%, according to Freddie Mac's weekly mortgage market survey. In the Bankrate.com weekly survey, the rate has risen to 5.02% -- crossing the 5% mark for the second time in three weeks -- after being as low as 4.42% as recently as early November.

Rates haven't been this high since May and forecasters now predict them to remain between 5% and 6% for all of 2011.

"You can kiss those record lows goodbye," said Greg McBride, chief economist for Bankrate.com.

Keith Gumbinger of HSH Associates, a provider of mortgage information said that the market reached a new plateau.

"I don't think we're going back to a 50-year low anytime soon without an economic collapse," he said. "Rates will probably never revisit those levels."

The increase will push mortgage payments higher for homebuyers. When rates rise from 4.25% to 5% it takes away about 9% of buying power, according to McBride.

"That's nothing to sneeze at," he said. "But it's still small relative to the steep drop in home prices over the past few years."

http://money.cnn.com/2010/12/30/real_estate/mortgage_rate_spurt/index.htm

If you are behind on Mortgage Payments or if your house is worth less then what is owed… We can help you!

If you are behind on Mortgage Payments or if your house is worth less then what is owed… We can help you!

Michelle & Associates  SHORT SALE  team can help you avoid foreclosure, minimize the damage to your credit, and get back on track. We offer a free consultation with no obligations. There are many options- don’t give up!

 

A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers.

What are the Qualifications for a Short Sale?

Financial Hardship

Monthly Income Shortfall

Insolvency

 

A FORECLOSURE can cause a 300 Point Drop in your credit score and stay on your report for 10 years or more. Know your options to find the best solution for you...call today!

 

Save your home and your credit!  We have many short sales listed and offer quality service when it comes to short sale negotiations.