With all eyes on the mortgage industry there are some signs indicating a recovery could be on the way. Although no one expects the recovery to be groundbreaking, any improvement is welcomed over foreclosure these days. Even more interesting is the fact that despite the small inches of recovery in the market, mortgage rates are holding steady.
Steady Does It
When the mortgage industry is flourishing, loan rates tend to skyrocket. After all, why not charge more for a mortgage loan when the demand is high and the buyers are plentiful? However, after the recession everyone is taking it slow when it comes to getting back into the market.
For the last several weeks we have seen foreclosures drop, default rates slip yet mortgage rates hold steady, a great sign for potential buyers. Industry experts are hesitant to say that rates have “improved”, but they do say “costs are lower” for mortgage applicants. A rate of 4.0% is the current combination rate for interest and closing costs for well qualified buyers. Although some increase is expected over the next few years, the rates are predicted to remain affordable to the majority of potential buyers.