10 Nov 11 Freddie Mac Indicates Mortgage Rates Falling Further
It looks like another wave of home refinancing is arriving as mortgage interest rates are breaking records once again. Lenders Nationwide and Quicken Loans reported a surge in mortgage applications this week. Freddie Mac announced today that fixed thirty-year mortgage rates had fallen to 3.99%, down from 4% last week. According to the Mortgage Bankers Association five weeks ago, the rates fell to a record low of 3.94%. The average interest rate on the fifteen-year fixed mortgage dipped last week to 3.30% from 3.31%. The best lender rates were released in a report by HSH earlier this week.
Home mortgage interest rates track the yield on 10-year Treasury note, which fell this week as investors shifted money into safer Treasury’s amid fears Europe’s debt crisis could worsen. Low mortgage rates have down little to boost home sales. Rates have been below 5% for all but two weeks this year. Yet home sales are on pace to be the lowest in 14 years.
The low interest rates have caused a modest boom in home mortgage refinancing, but that benefit might be wearing off. Most people who can afford to refinance have already locked in rates below 5 %. Just five years ago they were closer to 6.5%. Ten years ago, they were above 8%.
The average home loan rates don’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1% of the loan amount. The average fee for the fixed thirty-year home loan was unchanged. The average cost in lending fees on the fifteen-year fixed mortgage increased from 0.7 to 0.8.
The average mortgage interest rate on the five-year ARM fell to 2.98% from 2.96%, which had been a record low. The average mortgage rate on the one-year adjustable loan increased to 2.95% from 2.88%. According to Freddie Mac, It fell last month to 2.81%, the lowest on records dating to 1984. The average lending fees on the five-year and one-year ARMs were both unchanged at 0.6.
09 Nov 11 Refinance Activity Rises for Homeowners in the US
Home loan applications in the United States spiked last week as interest rates fell once again to record lows. The mortgage refinance activity drove the rise in mortgage applications last week. The increased demand for lower monthly payments continues to rise for homeowners looking to save money where ever they can. According to the Mortgage Bankers Association, the refinance rates fell for conforming and FHA loan programs.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, climbed 10.3 % in the week ended Nov 4. “Treasury rates dropped last week, as renewed turmoil in Europe once again led to a flight to quality, and thirty-year interest rates dropped to their second lowest level of the year,” Mike Fratantoni, MBA’s vice president of research and economics, said in a statement.
The MBA’s seasonally adjusted index of refinancing applications rose 12.1% to its highest level in a month. Fratantoni said some lenders saw even bigger increases. Fixed 30-year mortgage rates dropped 9 basis points to average 4.22%. The refinance share of total mortgage activity rose, after declining for three weeks, to 78.6% of home loan applications from 77.1 % the week before. The gauge of loan requests for home purchases gained 4.8 %.
30 Sep 11 Record Low Home Loan Rates But Who Qualifies?
It’s no secret that the Federal Reserve has made significant efforts to keep home loan interest rates artificially low in an effort to help the housing industry and U.S. economy rebound. Today the fixed 30-year mortgage rates have dipped below 4% for the first time ever. Unfortunately, most borrowers do not qualify for home mortgage loans with these record low rates. For the few consumers that meet the lender requirements this means the opportunity to qualify for the best refinance rates of all-time.
Of course, these days many people are in no position to buy or refinance a home. Many can’t meet the stringent lending standards that have prevailed since the housing bust and bank bailout, or they owe so much more than their house is worth that they can’t get a new loan at a better rate. According to loan officer Darin Hardin of Premier Mortgage Group in Ladera Ranch, California, “The phone is ringing off the hook with people who want to refinance, but the property values are not high enough for homeowners to qualify.”
The record low interest rates are driven by the Fed’s announcement last week that it would load up on purchases of long-term government bonds and mortgage securities. The extra demand was intended to drive down long-term interest rates, including those for home loans – and it worked. According to Freddie Mac for a fixed 30-year mortgage, the typical rate for solid borrowers was 4% last week and early this week. That’s below the record low of 4.08% set in 1950 and 1951.
According to the Mortgage Bankers Association, more than three-quarters of all home loan applications are now for refinances, although the volume is more of a boomlet than a boom. As rates sank toward 4% recently, borrowers were refinancing their loans at about half the pace seen in early 2009, when rates cracked the 5% barrier for the first time since 1956. Read more: Kansas Ciity.com.
17 Aug 11 Mortgage and Home Loan News
Why Mortgage Leads in Less Popular States Convert Better – The Lead Planet, a mortgage marketing company from San Diego, California discusses why sometimes buying leads in random states makes sense financially.
Freddie Mac and Fannie Mae Default Ratings – Taxpayers have spent about $150 billion to rescue them, the most expensive bailout of the crisis.
How to Qualify for a FHA Loan – First time home buyers continue to go to the government for purchase mortgages for many reasons. Mortgage rates are low and the credit guidelines are flexible.
Home Loan Applications Increased with Interest Rates Declining – With the Federal Reserve’s commitment last week, interest rates fell once again and mortgage applications soared across the country.
Will Homeownership Rates Revive? – With low mortgage rates and talk of the housing market improving many people anticipate that the rate of consumers becoming homeowners will soar again. The New York Times says — Not so Fast.
14 Jun 11 30 Year Mortgage Rates Strong But Bond Staggers
According to MBA’s recent survey of lenders, the fixed rate 30-year mortgage dropped 4 basis points this week, to 4.65%. Even with 30-year mortgage rates near all-time lows, most economists concur that the economy is not recovering at the pace they had forecasted last summer. Federal Reserve chairman, Ben Bernanke acknowledged that U.S. economic growth is “frustratingly slow,” adding the “jobs situation remains far from normal.
After stagnating for six straight session, benchmark mortgage rates finally broke technical support today and erased a chunk of positive progress. Bonds got going in the wrong direction late last night after Chinese officials reported a 34-month high in consumer level inflation and better than expected industrial output.
24 May 11 Homeowners Choosing 10, 15 and 20 Year Terms for Mortgage Refinancing
It’s no secret that mortgage rates have fallen to record lows again. As rates have fallen once again to lows for 2011 for home financing and refinancing. Freddie Mac chief economist Frank Nothaft said there has been a shift to shorter terms “a very strong trend.” Freddie Mac published their latest quarterly survey of people who are seeking a home refinance loan revealed that more than 1 in 3 borrowers were replacing their fixed 30-year mortgage with 15 or 20-year home loans because the interest rates were so low.
Conventional and FHA mortgage rates have fallen to the 4.5% range on the 30-year loan terms, but the conforming 10 year fixed has dropped to 3.375%. For some of these unique refinance programs, lenders want to see at least 25% equity in the house. Higher FICO credit score requirements by Fannie Mae and Freddie Mac are another big impediment; both companies reserve their best rates for borrowers with FICO scores of 740 and higher.
The shift to shorter-term loans is part of an even broader trend among consumers emerging from the scary moments of the recession and global financial crisis: de-leveraging, reducing long-term household debt burdens and getting out of adjustable-rate loans. According to Freddie Mac data, cash refinance transactions, where homeowners raise their home loan balance by more than 5%, accounted for only 25% of refinance loans in the latest quarter, compared with 80% and higher just a few years ago when rates were low and guidelines were much more forgiving.
12 May 11 Home Loan Rates Decrease to Lowest Level in 5 Months
Interest rates for mortgages in the U.S. fell for a fourth week, sending home loan costs to the lowest level since December. According to Freddie Mac, the average rate on a 30-year fixed rate mortgage fell to 4.63 % in the week ended today from 4.71%. That is the lowest since the week ended Dec. 9. The 15-year rate slipped to 3.82% from 3.89% a week ago, the mortgage-giant said.
Dropping home loan rates helped drive demand for home loans last week and encouraged homeowners to reduce their monthly payments. The Mortgage Bankers Association’s measure of refinance loans rose 9% in the week ended May 6, the biggest increase in two months. MBA said the Home purchase mortgage applications increased 6.7%.
On My 20th, the National Association of Realtors said, “The U.S. housing market is struggling to recover as unemployment hovers at 9%. House prices dropped in 118 of 153 cities as foreclosures that sell at cut-rate prices devalued real estate. According to Freddie Mac the average rate for a 30-year fixed home mortgage is below where it was last year at this time, when it was 4.93%. It fell to a record 4.17% in November.
Tags: 30-year fixed home mortgage, Home purchase mortgage
30 Mar 11 Higher Rates Hurting Refinancing
Interest rates appear to be creeping upward. According to the Mortgage Bankers Association, the average fixed 30-year mortgage increased to 4.92%. The average fixed 15-year mortgage rate increased to 4.16%. Lenders are reporting decreasing inquires for mortgage refinance loans. With refinance rates continuing to rise, many homeowners are nervous because they did not take advantage of record breaking mortgage rates in November and December of last year. See the original article online > Mortgage Refinance Applications Decline.
25 Mar 11 Mortgage Rates Rise with Inflation Concerns
According to report released by Freddie Mac, inflation is having a negative impact on mortgage rates with lenders reporting higher rates across the board. 30-year fixed home loan rates averaged 4.81% this week, up from 4.76% last week. A 15-year fixed bounced back above 4%, averaging 4.04%. Government financing also saw higher rates as VA and FHA mortgage rate programs inched up 0.10%.
Adjustable-rate home loans also rose, with a one-year ARM averaging 3.21%. According to Freddie Mac chief economist Frank Nothaft, “The rate uptick was related to higher-than-anticipated inflation data for February and ongoing geopolitical concerns.” The most-recent consumer price index report shows inflation running at an annual rate of 1.2 percent.
14 Mar 11 Home Loan Rates Unmoved
According to Freddie Mac, home mortgage rates did not move last week, for the most part. The average rate on fixed 30-year home loan rates inched slightly higher, according to Freddie Mac’s (FMCC) weekly survey of mortgage rates. Mortgage rates had risen earlier this year, hitting their highest level since April last month. They had slumped most of last year as Treasurys had declined amid economic uncertainty. According to Freddie Mac Chief Economist Frank Nothaft, “Interest rates for 30-year fixed-rate loans have averaged lower than 5% in every week but one this year, contributing to record home affordability.”
The fixed 30-year home loans averaged 4.88% for the week ended Thursday, up slightly from the prior week’s 4.87% average but down from 4.95% a year ago. Rates on 15-year fixed-rate mortgages were 4.15%, flat with the week earlier and down from a year-earlier 4.32%.
5/1 ARM loans averaged 3.73%, up from the prior week’s 3.72% but down from 4.05% a year earlier. 1-year ARMs fell to 3.21%, down from 3.23% and 4.22%, respectively.
09 Feb 11 Mortgage Inquiries Fall
The housing sector remains sluggish and the demand for mortgages appears to be falling with rates on the rise. According to the Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both home mortgage refinancing and purchase demand, fell 5.5 % in the week ended February 4th. It is no secret that 30-year home loan rates are rising and this will have a dramatic effect on the volume of loan applications this year.
The MBA’s seasonally adjusted index of refinancing applications fell 7.7% last week. The gauge of applications for home purchase loans was down 1.4%. The 30-year fixed rates averaged 5.13 % in the week, up 32 basis points from 4.81% the prior week. It was the highest interest rate average since the week ended April 9, 2010.
04 Feb 11 Thirty Year Home Loan Rates Rise
For the most part interest rates were flat this week, but some of the popular mortgage rate terms did increase slightly. The average rate on the fixed 30-year mortgage inched up this week as bond yields increased. Freddie Mac said Thursday the average rate rose to 4.81% this week from 4.80% the previous week. Rates fell to a 40-year low at 4.17 % in November. The average interest rate on the fixed 15-year mortgage dipped to 4.08% from 4.09%. It reached 3.57% in November, the lowest level on records starting in 1991.
Home loan rates have been little changed this year after spiking more than half a percentage point in the last two months of 2010. Investors sold off Treasury bonds during that time, driving yields lower. Mortgage rates tend to track the yield on the 10-year Treasury note. High foreclosures, job worries and expectations that home prices will fall further have kept many potential homebuyers on the sidelines. Historically low mortgage rates haven’t been enough to jumpstart the housing market.
27 Jan 11 5 Best Home Loan Bargains
With all of the talk in the news about mortgage rates rising you would think that discounted home loans had gone on vacation to see the dinosaurs. Truth be told, there are still many opportunities for homeowners and new homebuyers to find low home loan rates. Yes, fixed 30-year mortgage rates have ticked up since December, but historically they remain amazingly appealing to consumers that haven’t taken advantage of this low rate era.
I decided to highlight some of the amazing mortgage offers that still exist:
1. 15-Year Fixed Rate Mortgage as low as 3.5%- 2. 5/1 ARM offers a fixed interest rate at 3.125% for 5 years
- 3. 10 Year Fixed Rate Home Loan as low as 3.375%
- 4. VA 100% home Loans fixed for 30 years at 4.625%
- 5. FHA Streamline Refinance for 15 years at 3.75%
Many lenders are reporting that the cost to originate a home loan is rising, so take advantage of any of these 5 best home loans mentioned above if you can get approved for no cost refinancing or no point home financing. Clearly, there is volatility in the financing market, but I continue to see promising signs for in mortgage industry if you look in the right places.
21 Jan 11 Mortgage Rates Remain Flat
Mortgage rates continued a flat trend this week helping loan origination to increase slightly. Freddie Mac’s chief economist Frank Nothaft indicated that inflation was mild and that home loan rates would stay put for the time being. Thus the 30-year fixed rate mortgage remained steady ranging from 4.625% to 4.75% for the week ended January 20th. The 4.74% 30-year mortgage rate average was up slightly up from last week’s average of 4.71%.
The 15-year fixed-rate mortgage averaged 4.05% this week, down from 4.08% last week and 4.4% a year ago. The popular 5/1 ARM saw rates that averaged 3.69%, down from 3.72% last week. To put it into perspective, the 5/1ARM averaged 4.27% last year at this time.
According to a VA lending survey, the current VA mortgage rates were available between 4.5% and 4.75%. The streamline program continues to be the most popular government refinancing option. FHA rates averaged 4.625% for the week and according to the Lead planet, purchase mortgage applications rose nearly 10%.
In a meeting earlier this week, Frank Nothaft said, “Home mortgage rates were little changed during the holiday week amid reports that inflation remains tame.” Nothaft continued, “Both the December core producer price index and consumer price index matched the market consensus. Compared to December 2009, core consumer prices rose at a 0.8% rate, the smallest yearly increase since records began in 1958.” But the home construction market remains weak, he said.
18 Jan 11 Home Loan Market In Flux
Interest rates on home loans have been going up since November. According to Reuters, investors have shifted cash out of Treasury’s and into stocks on expectations of faster economic growth and higher inflation. Yields usually rise on inflation fears. Can the Federal Reserve buy bad mortgages forever?
Home mortgage rates aren’t expected to revisit last year’s historically low interest rates, unless the economy takes a sharp turn for the worse. And even if they do, low home loan rates did little last year to spark spuddering home sales. With mortgage guidelines tightening and rates rising many real estate insiders are concerned about the implications.
Higher home loan rates are just another obstacle facing the devastated housing market. High unemployment, elevated foreclosures and falling home prices are other drags on the market’s recovery.
RealtyTrac Inc. said banks took back more than 1 million homes last year, the highest tally on records dating back to 2005. One in 45 U.S. households received a foreclosure filing in 2010, up 1.67% from the year before. The foreclosure listing firm expects bank repossessions to peak this year at 1.2 million. In most cases, home foreclosures typically sell at a reduced price of up to 50% in some of the hardest hit regions. That lowers prices of similar homes in the area. Experts predict home prices will drop nationally another 5 to 10% before bottoming out in midyear
