Nationwide, rates on mortgages are starting to tick up though demand and sales are beyond pathetic. Rates are still close to record lows. However, the past few months have showcased rates that are increasing steadily. Foreclosure practices also as lousy demand has kept the real estate industry from fully recovering from the recession.
Inexpensive housing can’t stimulate much demand
Even some of the cheapest real estate on record cannot seem to boost sales. There was a decrease in home sales in February. This was for both existing home sales and new home sales. Now, mortgage interest rates are starting to rise again. This was after, as USA Today reports, the 2010 lows. There was a 0.05 percent increase on Thursday, March 24, in a week as the nationwide average 30-year fixed rate mortgage rate was at 4.81 percent. The 15-year fixed rate mortgage also went up. It hit 4.04 percent total. The 15-year fixed rate mortgage got to 3.97 percent in November 2010. At the same time, 30-year fixed rate mortgages were at 4.17 percent.
Issues with foreclosure legality continue
The foreclosure legal issue is nevertheless there. This “robo-signing” is one individual’s are nevertheless concerned about. The same day loans were being handed out by mortgage lenders that were attempting to rush foreclosure paperwork. All 50 state attorneys general and many agencies part of the federal government looked into this with investigation. Settlements may be reached eventually between banks and mortgages and state and federal governments. Reuters states that agencies are trying to go around the process with the settlement also.
Not a good future for real estate
A settlement will eventually be reached starting thousands of foreclosures and home evictions. many have simply been waiting for the settlement to occur. Evicting thousands of people will likely boost the payday loans industry as previous homeowners scramble for money to cover moving expenses. The foreclosure crisis is expected to cost the banking industry tens of billions, according to Fortune, regardless of any government settlements or fines. Any person who can get access to the credit to buy a home will benefit from doing this quicker rather than later. There’s a low demand and few sales. There aren’t many new homes being built either. Until buyers start buying again, the housing industry won’t be able to recover.