Peter McDougall
For homeowners looking to refinance with a $150,000 15-year FRM, a 0.64 percentage point difference equates to a $613.32 increase in yearly payments and an extra $9,199.80 in interest paid over the 15-year life of the loan.
But as rates have been rising, home values have been falling. National home values declined an average of 10.4% over the first quarter this year, according to Freddie Mac's Conventional Mortgage Home Price Index (CMHPI). Nothaft commented in May that he expects "to see further declines in average home values throughout this year and into 2009." While that's not good news to homeowners who are looking to sell or to refinance their homes, it could be good news for consumers on the hunt for homes -- especially if mortgage rates' recent increases are coming to an end. If you are looking to buy a home and are shopping around for the mortgage rates, you can check out the latest rates available in your area by visiting the mortgage section of BankingMyWay.com. Enter your zip code to find offers from your local lending institutions.
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