Mortgage Rates Rising While Home Values Begin To Level Off

Mortgage rate averages for both the 30 year and 15 year fixed mortgages rose more than 0.25 percent from last week. The average for the 30 year fixed rate mortgage now sits at 6.04 percent which is up an astonishing 0.30 percent. The average for the 15 year fixed rate mortgage rose a whopping 3.3 percent during the week and now stands at 5.6 percent.

Mortgage applications are down an overall of 14.2 percent with refinance applications falling 20.2 percent and purchase applications falling just 6.4 percent. FHA mortgage applications also fell this week by 2.7 percent. However, FHA applications have risen 148 percent since last year. More and more lenders are turning to FHA mortgage programs from the government as banks are reluctant to lend money.

The National Association of Realtors (NAR) reported that home sales continue to decline but the median home value actually rose last month. Home sales are down 19.3 percent from the 6.11-million-unit pace recorded in March 2007. The average US home price, for the first time in about a year, rose to $200,700 in March from $195,600 in February.

If home values truly begin to stabilize, this spring may be the season that many home buyers have been waiting for… rock bottom prices.

For the latest mortgage news visit Future Planning Financial at www.fpf-direct.com.