3.3 million people filed for unemployment last week, shattering the previous record of 700,000 set in 1982. Normally, such news would send rates into a massive downward spiral – but not in today’s world. Rates remain higher primarily because of the extra risks involved with mortgages now. These risks are enormous and include job losses by borrowers, missed payments, early-pay-off penalties, first-payment-defaults and all sorts of demands for capital.In other words, the entire mortgage industry is as precarious as the rest of the economy now and lenders are doing everything they can to remain financially sound.
Read More
