If you still have equity in your home and have an ARM or a fixed interest rate above 6% now would be a good time to look into refinancing while rates are still in the mid 5’s.
A new report from the analysts over at Deutche Bank predicts home values will drop another 14% in the next 16 months or so and that reported would put nearly half of all US homeowners “underwater” on their homes. Here are some bits from the recent Reuters write up on the subject:
The percentage of U.S. homeowners who owe more than their house is worth will nearly double to 48 percent in 2011 from 26 percent at the end of March, portending another blow to the housing market, Deutsche Bank said on Wednesday.
…
Of prime conforming loans, 41 percent will be “underwater” by the first quarter of 2011, up from 16 percent at the end of the first quarter 2009, it said. Forty-six percent of prime jumbo loans will be larger than their properties’ value, up from 29 percent, it said.
“The impact of this is significant given that these markets have the largest share of the total mortgage market outstanding,” the analysts said. Prime jumbo loans make up 13 percent of the total market.