As always, the housing market continues to rise and fall with the economy. Though homes are now valued at much higher prices than they were during the recession over the past few years, homeowners are now experiencing another aspect of the housing market, and that is mortgage rates are on the rise. According to recent reports form Freddie Mac as on June 6, fixed mortgage rates are at 3.91% for those in a thirty year plan. What this means is that over the last five weeks the interest rates have been consecutively raising, last week's number being the highest rates yet this year. Broken down into simple terms, this means that as a result of this latest increase, if a person owes "x" amount of money, for every $100,000 they will then have to pay an extra $30 dollars in addition a month to match up with the mortgage increase. So as an example, perhaps you took out a $300,000 loan so that you and your new wife could purchase a home together. You will now be required to pay $60 extra dollars in addition to whatever you're normal monthly payments for mortgage were for your 30 year plan.

One of the cruxes for the housing recovery as of late has been due to the ability for people to receive cheaper financing on their homes, so this begs the question as to whether this will negatively affect the momentum of the recover housing recovery in the U.S. Fortunately, when looking at the broader picture, even the highest rate of this year at 3.91% is still significantly better than the past decades. These rates are largely caused by the stimulus plan which was funded by the Federal Reserve. The purpose of the lowered rates was to act as an economic stimulus which would enable home buyers who were qualified as well as seeking to refinance their current homes, to receive financing that was more affordable.

With homes being not only more affordable, but also having it easier to finances, the housing market has greatly been improving. The overall sales of homes and prices have increases as a result of these lower rates. Economists believe that this trend of mortgage rates will continue to increase, and that there is a good chance by the end of the year the rates will be at 5%. Where in the United States you live will determine the effect that the mortgage growths will have on the growth patterns of the economy. It is believed that because homes in the Middle of America are already so affordable, it is doubtful hat they will have to deal with too many difficulties in regards to the housing market. However, where the concern lies is for those who live in the communities along the countries coast. Whether you live in California or Washington D.C. or New York and Boston, it is believed that the sales of homes may be negatively effected (or simply slowed down) as a result of the increase.

Being able to afford your home is an important aspect of our life, and likely it is the biggest investment you have ever made. And while having a home for you or for you and a family is a wonderful thing, going into debt over it is not worth it. Perhaps you have found that you are already financially suffering as a result if your recent home purchase. You find that a number of creditors continue to harass you and demand repayment for funds you don't have. If this is the case, consider finding a bankruptcy attorney in your area to discuss debt management and other solutions that may be beneficial to you.