Interest rates on 30 year fixed jumped from 6.21 to 6.74 during the last month. Which means payments went from 1,839 to 1,944 dollars a month on a $300,000.00 loan.
Looking at it another way a borrower who can only afford 1839 a month can no longer afford a $300,000 house. He can only afford a 283,000 home.
According to south florida's Sun Sentinel.
Those higher rates are going to make it difficult for troubled homeowners to refinance in here in the Sarasota and Bradenton Florida area. I would not expect the rate of short sales or foreclosures to go down.
1 comment:
I work for Current Foreclosures, a foreclosures site, and we have been noticing a huge increase in the number of foreclosures across the nation. I believe it is mainly because of subprime lending, ARM loans, the depreciation of the housing market, and the lack of buyers on the market. I do no think that the market will recover this year, especially with ARM interest rates set to rise next year for many homeowners.
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