For the first time in 3 weeks mortgage applications rose, as did rates - though only slightly - for 30 year fixed-rate mortgages, according to the Mortgage Broker's Association. Average rates on 30 year fixed-rate mortgages rose to 6.36 from 6.31 the previous week. 1 year ARM rates hit 5.83, up from 5.68 last week.

According to a CNNMoney article, the "danger years" of mortgage delinquency are the 3rd and 4th years and there are millions of Americans whom are entering those "danger years."

With almost half the mortgages in America 3 years old or less, there are a lot of people that could be in 'danger', especially, according to most experts, those whom bought homes using ARMs or no-downpayment loans. Fortunately, this group of people represents just 15% of all mortgage holders.

In places like Southern California, the price of homes could push mortgage payments several hundred dollars higher per month as ARMs mature from their initial fixed-rate into variable rates. For this reason, most experts suggest moving from ARMs into Fixed Mortgages as soon as possible.

Still, if you were hoping for a massive amount of bankruptcies so that you could slip into a home on the cheap, you might be waiting a long time.

According to analysts, a large number of ARM users can afford to pay off their mortgages at anytime as ARMs were only used to remain liquid for other investments.

Need a mortgage broker?

So, you want to buy a home in Los Angeles, but the high price of real estate means that coming up with a 20% downpayment is impossible? Thus, you know you're going to have to pay PMI, or private mortgage insurance.

Or do you?

Some home buyers are using piggyback loans to cover their downpayments, which is essentially a second mortgage that closes at the same time as your primary mortgage. Unlike PMI, second mortgage interest can be tax deductible. Of course there are some downsides to piggyback loans. Aside from being harder to qualify for, piggyback loans mean that you won't be taking out another mortgage on your home - in most instances. Additionally, second mortgages don't always result in a savings.

For more on piggyback loans, click here. Need a mortgage broker?

Did you know that you don't need good credit for a reverse mortgage? You don't even need to have a very good savings - if any - to qualify for a reverse mortgage.

Of course that doesn't mean that a reverse mortgage is a great deal for everyone. Fees can be very high on reverse mortgages.

If you are thinking about a reverse mortgage, check out this Money Magazine Article.

Or click here to have a broker call you to discuss reverse mortgages.

According to the Mortgage Banker's Association, applications for mortgages dropped 1.6 percent this week versus last week. Compared to last year at this time; however, mortgage applications are down a whopping 13.8%. However, mortgage rates also dropped. The 30-year fixed mortgage rate went from 6.42 to 6.31%.

While the general consensus is that mortgage rates are going higher and could hit 7.0% by the end of the year, there is a little conflicting data. For example, yesterday the Mortgage Broker's Association reported that mortgage rates increased slightly last week.

On the other hand, today Fannie Mae is reporting that mortgage rates were down slightly last week.

So, what does all this mean? For one thing, it means that you should probably shop around if you are looking for a mortgage. Over the life of a 30-year fixed mortgage, small differences can result in 10's of thousands of dollars at today's Southern California home prices.

On the other hand, just a few weeks ago everyone believed that the Fed was going to push rates higher. While the Fed doesn't control mortgage rates, their actions do seem to create mortgage rate movement. This week; however, the stock market is booming and there are now many financial signs that seem to indicate that maybe the Fed could be close to being done.

Might this keep rates lower for a longer period of time than previously expected? Perhaps mortgage rates will even slump a bit lower for a while?

Again, shop around for your mortgage.

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According to the Mortgage Banker's Association, demand for mortgages decreased last week - mostly due to a lack of refinancing activity. Many analysts see this decrease in refinancing as a result of the increasing 30 year mortgage rate, which again went higher last week.

The average 30 year mortgage rate hit 6.42 percent, while 1-Year ARM's fell to 5.64 percent.

Still, higher rates didn't have much of an effect on new mortgages.

"Seasonal factors are rising and we are entering the peak home buying season of spring, which is probably why higher rates did not have a larger impact on loan demand," said Douglas Duncan, chief economist at the MBA.

With mortgage rates at their highest levels in a few years and only rising, one must wonder what effect this has on the affordability of homes.

According to a CNN article, "Rates have a direct affect on affordability. For example, a jump in interest rates from 6 percent to 7 percent on a 30-year loan adds about 10 percent to a monthly mortgage bill. A homeowner who financed a loan of $200,000 at 6 percent would pay about $1,200 a month. At 7 percent, the bill would come to $1,330."

As mortgage rates go up, buying power goes down. Do you need a mortgage broker before rates go too high?

Mortgage rates have hit their highest levels in more than two and a half years. The 30-year mortgage now sits at 6.37%, with most analysts predicting that rates could hit 7.0 before the end of year.

Still, higher mortgage rates are having little effect on housing prices. While the supply of houses is rising, the price of homes is not declining.

So, when will prices drop? When will the real estate bubble burst?

Perhaps never, according to many followers of the real estate market. Price appreciation is cooling, but little price depreciation is occurring. Stabilization of prices, it seems, is the key buzzword in home values these days.

So, should you take advantage of low rates, or wait for prices to decline? Unfortunately, there is no clear answer to that question.