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13 Feb 14 Low Mortgage Rates Stablizing

In a recent article, Freddie Mac chief economist, Frank Nothaft said, “Low mortgage rates are helping to stabilize home sales.” “New home sales in August rose to the highest annualized pace since September 2008 and the inventory of unsold houses fell to the lowest level since February 1983.”

The 30-year fixed-rate mortgage averaged 4.94% for the week ending Oct. 1, down from 5.04% last week and 6.10% a year ago. The mortgage hasn’t been below 5% since the week ending May 28, when it averaged 4.91%.

The 15-year fixed-rate mortgage averaged 4.36% this week, down from last week’s 4.46% average. The home loans averaged 5.78% a year ago. It hasn’t been lower since Freddie Mac started tracking it in 1991.

To obtain these low mortgage rates, the 30-year fixed-rate mortgages require a payment with a cost of 0.7 point, the 15-year fixed-rate mortgage and the 5-year ARM required an average 0.6 point and the 1-year ARM required an average 0.5 point. A point is 1% of the mortgage amount, charged as prepaid interest.

Bad credit mortgage rates may be possible with the obama loan relief or the new FHA loan modification that enables borrowers with delinquent loan payments refinance their home if there is a documented hardship.


06 Jan 09 Federal Reserve Must Have Exit Strategy for Mortgage Loan Programs

In a recent Bloomberg article written by Vivien Lou Chen announces that the Federal Reserve Bank of San Francisco President Janet Yellen said the U.S. central bank must have a “timely” plan for ending lending programs created since the start of the global financial crisis.   “Many of the interventions are novel, so no straightforward methods are available to quantify their effectiveness,” Yellen said in remarks prepared for a speech today in San Francisco. “The Fed must ensure that it has an exit strategy to wind down the facilities in a timely and effective way when they are no longer needed.”

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Fed Chairman Ben Bernanke has created more than $2 trillion of emergency mortgage lending programs since December 2007, using the Fed’s balance sheet and money-creation authority to cushion the economy from the credit crunch. Yellen’s remarks come less than three weeks after Fed policy makers cut the federal funds rate, or the rate banks charge one another for overnight loans, to as low as zero for the first time. The central bank also shifted its focus to the amount and type of debt it buys. “Conditions are still abnormal, but money market functioning has clearly improved relative to the dark days of last September and October,” Read the original article>


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31 Dec 08 Mortgage Lenders Are Losing Lawsuits

Mortgage Lenders Are Losing Lawsuits

In a recent article by , Homeowners appear to be winning a number of lawsuits filed against mortgage companies, an analysis of previously covered litigation by indicated.

Two of the pending cases are seeking to stop foreclosures while another is targeting predatory lending fees charged by state regulated lenders in Maryland.  They reported that one of lawsuits accuses several mortgage lenders of steering minority black borrowers towards higher cost mortgage loans.  One might say that the courts are more sympathetic to the distressed homeowners rather than the ailing mortgage companies.  2009 verdicts will be interesting and may forge new ground breaking laws that will be created to curb predatory lending abuse.


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15 Dec 08 Obama Announces Shaun Donovan to be HUD Secretary

President-elect Barack Obama has named a former commercial mortgage executive as his choice to head the U.S. Department of Housing and Urban Development. This will be the second term at HUD for the nominee.


In a weekly radio address Saturday, Obama announced his nomination of Shaun Donovan as HUD secretary, according to a transcript of his prepared statement. Donovan currently serves as commissioner of New York City’s Department of Housing Preservation and Development.  The HUD nomination is a more important nomination than most years, because the HUD secretary is sure to play a key role in cleaning of the mortgage industry in hopes of ending the foreclosure crisis.  Get the latest mortgage news online.



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