Mortgage Rates Up, Record Mortgage Delinquencies and Home Prices Down

Mortgage rates were driven higher this past week because bond yields rose on the hope that the economy will recover in the second half of 2009. Freddie Mac reported in their weekly mortgage survey that 30-year conforming fixed rate mortgages rose to 4.91 percent from 4.82 percent the previous week. 

15-year conforming fixed rate mortgages also rose this past week. Rates averaged 4.53 percent with an average 0.7 point, up from last week when it averaged 4.50 percent. Even though mortgage ratesrose this past week rates are still near historic lows.

The Mortgage Bankers Association reported mortgage delinquencies were 12.07 percent, a record in the first quarter of 2009. The MBA delinquencies survey includes mortgage loans that are in foreclosure and mortgages that are at least one payment past due.

The last piece of bad news is the Standard & Poor’s/Case-Shiller Home Price Indices showed Prices of single family homes fell 18.7% in March from a year earlier and prices in the first quarter dropped at a record pace.

The good news is the recession might end in the next six months or less so be sure to lock in those lower mortgage rates by refinancing your mortgage now, that is if you’re in a position to do so. As for certificate of deposit rates, don’t lock in long term CDs since rates will be higher at the end of the year if the economy rebounds.