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Most real estate experts back the theory that the recent recovery in home sales is primarily due to two factors: mortgage rates that have been hovering around all-time lows and the government's ...
However, once interest rates began to rise and housing prices started to drop moderately in 2006–2007 in many parts of the U.S., borrowers were unable to refinance. Defaults and foreclosure activity increased dramatically as easy initial terms expired, home prices fell, and adjustable-rate mortgage (ARM) interest rates reset higher.
The government interventions during the subprime mortgage crisis were a response to the 2007–2009 subprime mortgage crisis and resulted in a variety of government bailouts that were implemented to stabilize the financial system during late 2007 and early 2008.
US house price trend (1998–2008) as measured by the Case–Shiller index Ratio of Melbourne median house prices to Australian annual wages, 1965 to 2010. As with all types of economic bubbles, disagreement exists over whether or not a real estate bubble can be identified or predicted, then perhaps prevented.
The average rate on the 15-year fixed mortgage rose to 6.10% from 6.02% last week. One year ago, the rate on the 15-year fixed note averaged 6.56%. Original article source: Mortgage demand jumps ...
The average 30-year fixed mortgage rate dipped back toward 7% this week, settling at 7.09%, according to Freddie Mac. This is the first time the weekly average rate has fallen in over a month.
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