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The Current Housing Boom Is Correcting The Underwater Mortgage Trend
Real estate prices have been driven up by a surge in demand and a lack of new construction. For the first time since the housing crash in 2008, some homeowners have the chance to get out of their underwater mortgages. Despite the fact that the crash was 13 years ago, there are still millions of homes across the nation that are worth less than their mortgages, a condition that left homeowners unable to sell and stuck with a heavy debt load. The current housing surge has corrected over 1 million underwater loans, about a third of the total underwater mortgages in the US.
30 Year Fixed Mortgage Rate
|Today’s Mortgage Rate||2.867%|
|Change From Yesterday||+0.058|
|Change From One Week Ago||+0.025|
|Change From One Year Ago||-0.175|
15 Year Fixed Mortgage Rate
|Today’s Mortgage Rate||2.207%|
|Change From Yesterday||+0.063|
|Change From One Week Ago||-0.583|
|Change From One Year Ago||-0.053|
Today’s Financial Headlines
Juneteenth is Now A Mortgage Holiday
Juneteenth was legitimized as a federal holiday earlier this year by President Biden, but it has taken more time for this change to be reflected in the way that mortgage closings and disclosures are handled. The Consumer Financial Protection Bureau has issued a ruling to clarify the impact of the new holiday on mortgage regulations.
Housing Boom Rescues Underwater Mortgages
Since the housing bubble popped in 2008, there have been millions of properties throughout the country that are worth less than the mortgages that are written against them. The current housing boom is finally reversing that trend in some areas. This gives homeowners the chance to sell and finally get out of unreasonable debt.
Commercial and Multifamily Loans Have Recovered From The Pandemic
The latest reports state that over 95% of commercial and multifamily loans in the US were paid on time last month. This reflects a much larger post-pandemic recovery, showing that businesses can finally pay their bills. However, the properties that are still struggling are mostly lodging loans, showing that the rent crisis is still an issue.