Mortgage Rates Coming Down

As recently reported in Yahoo Business News home loan rates in the US have fallen over the last week.

U.S. mortgage rates decrease

"Home loan rates fell over the last week as Treasury yields fell sharply amid financial woes and views that the Fed won't hike rates this year. The 30-year fixed-rate mortgage fell to 6.26% for the week ended July 17 from 6.37% a week earlier, Freddie Mac said. The 15-year fixed-rate fell 13 basis points to 5.78% this week. The 5-year Treasury-indexed adjustable-rate mortgage edged down to 5.8%, while the 1-year ARM fell 7 ticks to 5.10%. Treasury yields have picked up in the last few days"

This downward trend in mortgage rates has finally started to take effect in the UK house market, which continues to be depressed. Some forecasters are suggesting that UK house prices will drop as much as 18% this year, 2008, and there are others who are even more gloomy.

It is suggested that many of the UK's middle classes will go into negative equity, where the value of their home is less than their mortgage. It is a worrying situation, particularly when the cost of basic essentials, including food and energy, is also rising to unprecedented levels. There have been top level discussions to see what can be done about the fast escalating cost of oil, with its significant impact at the pumps.

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