30 Year Mortgage Rates Back Under 4%

The rate on a 30 year government mortgage loan has once again fallen below 4% this week, clocking in at 3.99%.  With lenders knowing they can unload all mortgages onto the FHA, Fannie Mae, and Freddie Mac (the taxpayers) rates have continued their downward march all year long.  The Wall Street Journal reported this morning that the reserves at the FHA are dangerously low.  They will soon need quarterly tax payer bailouts alongside Fannie Mae and Freddie Mac who are currently collecting every month.

Realty Trac reported this week that foreclosure activity hit a 7 month high in October.  The Core Logic home price index reported that home prices fell 1.1% month over month in September.

Zillow reported this week that 28.6% of all mortgages are now underwater (owe more than the home is worth). That is up from 26.8% in the second quarter.  There are over 50 million mortgages in our country.

Most of these 14.3 million underwater home owners continue to make their payments every month.  When most begin to walk away we will see the real foreclosure crisis begin.