An increasing number of mortgage borrowers are starting to feel a bit of pressure.

The pressure is coming from both the application side of lending, where some lenders are employing harder approval standards, and on the payment side, where homeowners are getting jittery about increased interest rates on their adjustable-rate mortgages.

When it comes to approvals, home mortgages in the easily approved category accounted for 66.6% of mortgages in the last six months. The percentage is down by 68% when compared to the previous six months.

A recent survey conducted by Roper for TransUnion showed that 27% of homeowners believe that rising interest rates will make it hard for them to pay their mortgages.

"When deciding whether or not to make a home loan, lenders looks at the borrower's finances and at the security for the loan, namely the home itself. They're not going to provide financing even to the most qualified of households if the property itself appears to be overvalued and in a shaky neighborhood," said Mike Ela, president of HomeSmartReports.

The uncertainty in the housing industry is evident everywhere. In Michigan, only 43.3% of mortgages are easily approved, down from 50.5%. Louisiana's easily approved category dropped from 67.4% to 58.2%.

Hawaii's easily approved category fell from 83.9% to 75.4%, while Florida fell to 55.6% from 60.6%.

TransUnion's report also showed that rising interest rates could result in 23% of homeowners refinancing. Sixty-one percent of renters could face difficulty in paying their rents when interest rates increase on their debts. Of those considering buying their first home, 78% of renters could have difficulty in securing a mortgage for purchase in the future.

Almost 40% of homeowners between the ages of 25 and 49 carry an adjustable-rate mortgage. Some markets are even closer to 50% for adjustable-rate mortgages. Those with adjustable-rate mortgages are facing higher payments in the future.

NeighborWorks Training Institute, based in Washington D.C., has reported that there is an influx of homeowners seeking mortgage and budget counseling. The combination of rising interest rates, home price depreciation and adjustable-rate mortgage payments increasing has threatened many homeowners with mortgage delinquency, or at least tight financial situations.

According to Ela, at least 30 states have reduced or not changed the level of easily approved loans, due to trying to find money in a slowing housing market.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Article Source: http://EzineArticles.com/?expert=Martin_Lukac