The average rate on the 30-year fixed-rate mortgage dropped two basis points, while the 15-year fixed and 5/1 ARM were unchanged, according to a NerdWallet survey of daily mortgage rates published by national lenders Friday morning.
The 30-year fixed has risen three basis points in the last week. It’s up 37 basis points compared with one year ago.
Just as mortgage rates have risen in the last year, home values have gone up, too. But some homes still haven’t regained the value they once had. About a decade after the bursting of the housing bubble, millions of homeowners still owe more on their mortgages than their homes are worth — a phenomenon that’s known as being “upside down.” In the second quarter of this year, 2.8 million homes were upside down, according to the CoreLogic Homeowner Equity Insights Report.
The quarterly report found that 5.4% of mortgaged homes were upside down nationwide. Drilling down to individual states, there’s a lot of variation. Nevada had the highest percentage of mortgaged homes that were upside down: 10.6%. Florida was next, at 10%. On the other end of the spectrum, Texas had the lowest percentage of upside-down homes, at 1.5%, followed by Washington state, at 1.7%.
But 2.8 million upside-down homes represents an improvement over the 3.6 million that were upside down a year ago, according to CoreLogic. That means 800,000 homeowners regained positive equity in one year. This could potentially help relieve the problem of there not being enough houses for sale, because now some of these homeowners could afford to sell without incurring a loss.
MORTGAGE RATES TODAY, FRIDAY, SEPT. 22:
NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.
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