Mortgage Rates Holding Steady
Weaker economic data reported this week helped to offset expected mortgage rate increases. The best 30-year fixed rate is holding at 4.375% at some lenders.
HAMP Mortgages About to Rise
Starting in 2009, HAMP has assisted troubled borrowers in cutting their mortgage interest, many to rates as low as 2%. However, rates in these HAMP mortgages were fixed for only five years. Starting this year, borrowers will begin to see their rates climb by 1% per year to 5.4%. Some 33,000 borrowers are expected to see this beginning this year, and some fear that defaults will begin to appear in this group.
No Bailout This Year for FHA