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May 2, 2012

Interest Rates on Home Mortgages Remain Attractive

Category: Mortgage News,Mortgage Rate Report – admin – 7:51 am

Just when you thought home mortgage rates were finally rising.  According to a recent lender survey, 2012 has been quite a year for shattering interest rates. Yesterday, the leading the rate measuring stick online, HSH.com, said the average rate for fixed-rate thirty-year home loans eased by two basis points last week and at 4.125%. Today’s rates now stand just a hair below the record low. The fifteen-year mortgage rates dipped ever so slightly to 3.125%.

Home Mortgage Rates Won’t Stay This Low Forever

Borrowers seeking adjustable rate mortgage refinancing has cooled a bit, but the pool of homeowners who have variable interest rates has narrowed significantly in recent years. The rate for a 5/1 ARM loan is 2.45%, down from 2.5%. The current FHA mortgage rates have not moved, so first time home buyers and homeowners that have loans insured by the FHA will have opportunities to lower housing costs with rates available 3.875%.

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January 11, 2012

Record 30-Year Interest Rates Driving Lenders Business

Category: Financial News,Mortgage Rate Report – – 1:14 am

Zillow Inc. reported today that fixed 30-year home loans dipped once again to another record low last week.  With rates tumbling again, it’s no surprise that refinancing and purchase mortgage activity rebounded as well. Bloomberg reported that mortgage lenders are busier than ever as loan applications volumes have risen as rates have fallen in the first week of the new year.

In reviewing its Mortgage Marketplace, the housing data company said, the fixed 30-year mortgage rate dipped to 3.71%, down from 3.73% a week earlier. Zillow said the 30-year mortgage rates moved between 3.7% and 3.74% for the majority of the last week, falling to 3.67% on yesterday before rising to the current interest rate this morning.  It’s the 2nd week in a row that the Tuesday snapshot rate was the lowest the company has reported since the Zillow Mortgage Marketplace was launched in 2008. Many home mortgage lenders have reported rates at or near historic lows lately. Worries about European debt have been keeping yields on U.S. Treasury bonds low. Keep in mind that the mortgage rate typically follows the yield.

Many consumers are seeking quotes from lenders that offer no cost mortgage refinancing. Since Dodd-Frank has been enacted, we have seen more sources promote no cost lending than in previous years.

Tuesday, Zillow also said that the rate for a 15-year fixed home loan is at 3.03% from 3.07% a week earlier. The rate for a 5-1 adjustable-rate mortgage is 2.59%, down from 2.65%; a 5-1 ARM has an initial rate that applies for the first five years of the loan and then adjusts annually.

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August 5, 2011

Lowest Mortgage Rates of the Year on Fears of Another Recession

Category: Freddie Mac,Mortgage Rate Report – – 12:39 pm

Home mortgage rates have dipped once again to a generational low. The mortgage refinance rate has actually fallen to its lowest point since Freddie Mac started tracking interest rates in 1971. Will these record low refinance rates entice homeowners to refinance again? Americans have proved time and time again that if you give them an opportunity to save money then they will move forward with a home refinance loan transaction.

According to Freddie Mac Market Survey, the fixed 30-year rates averaged 4.39% for the week ending August 4th while the 15-year fixed fell to 3.54% amid falling bond yields and signs of a weaker-than-expected economy.

Greg McBride, senior financial analyst at Bankrate said, “Anyone who refinances at these historically low interest rates is a beneficiary of concerns about the economy and poor results on Wall Street,” said. By now most people know that home mortgage rates are great, but the real question for most borrowers is, “Do they qualify?”

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May 18, 2011

Lenders Report Lower Mortgage Rates for Refinancing

Category: Mortgage News,Mortgage Rate Report – admin – 8:55 am

Just when you though it could not happen again –refinance applications shot up again last week.  Most financing insiders attribute it to the falling interest rates. Many homeowners are making a last ditch effort to improve with a mortgage rate refinance. The Mortgage Bankers Association announced lower than expected rates in their report of seasonally adjusted index of applications for home financing activity.  The MBA report monitors the demand for purchase home loans and refinancing, climbed 7.8% in the week ended May 13.

Can Mortgage Rates Get Any Lower?

The MBA’s seasonally adjusted index of house refinance applications rose 13.2%, while the gauge of loan requests for home purchases dipped 3.2%. The refinance share of loan activity increased to 66% of total applications, the largest amount since late January. Michael Fratantoni, MBA’s vice president of research said, “The 30-year fixed mortgage rate is now 53 basis points below its 2011 peak, and has decreased for five straight weeks.”  He also noted that the mortgage refinance activity has risen nearly 33%.” The 30-year fixed interest rates averaged 4.60% in the week and that was the lowest rates reported since November 2010, when low rate records were being set.

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March 14, 2011

Forecasting Mortgage Rates in 2011

Category: Mortgage Rate Report,Published Articles – – 12:54 pm

Most economists believe that rates will go higher in 2011.  So far, we have seen higher FHA rates, conventional rates, and mortgage refinance rates on the whole.  According to Lead Planet chief economist, Josh Emmons, “Expect rates to continue to inch up in 2011, before inflation kicks in, causing rates to jump significantly.” While a higher FHA insurance premium and other rates on those holding a 15-year mortgage or 30-year mortgage are expected to rise which means the economy is improving, as long as mortgage rate refinancing and other rates in regards to mortgages increase at a gradual, manageable pace.  Having said that, rates are still quite favorable, and you can still take advantage of fixed rate refinancing.  Read the original article online> Mortgage Refinance Rates Forecast for 2011.

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November 27, 2010

Home Loan Rates Up and Down

Category: Mortgage Rate Report – admin – 1:06 am

Fixed mortgage interest rates on thirty and fifteen-year home mortgages moved in different directions this week, with the average on 30-year mortgage rates increasing four basis points to 4.50 %. The average interest rate on 15-year mortgage loans declined four points to 3.83% in the MBA survey.  A single basis point equals 0.01 percentage points.

  The MBA survey covers the week ending the previous Friday. More recent figures indicate that mortgage rates have remained largely stable during the current Thanksgiving holiday week.Today’s Freddie Mac weekly rate survey reports that both thirty and fifteen-year average rates for mortgage refinancing have increased only a single basis point so far in the current week.Average mortgage rates in the current Freddie Mac survey are 4.40% on 30-year mortgage loans and 3.77% on 15-year mortgages. Home loan rates reported in the two surveys typically vary due to differences in methodology and timing.
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November 4, 2010

Fed Committed to Low Rate Refinancing

Category: Mortgage Rate Report,Published Articles – admin – 6:56 am

Will the great rates be hanging around in 2012? The Federal Reserve Chairman Ben Bernanke announced that the economic conditions will “warrant exceptionally low levels of the federal funds rate for an extended period.”  Keeping rates on mortgage refinance loans low is expected to help spur the recovery.

Some economists anticipate this message changing in the future.  When this occurs, the historically low fixed mortgage refinance rates disappear.  The affordable home financing has benefited Americans looking for new home loans & people who wanted to refinance their current mortgages.

The home loan rates are great at the moment but no one knows how long the record low rates will last.  Home Loan Wholesale recommends locking the rate If you have been considering purchasing a new home or a mortgage rate refinance, you may want to act now to take advantage of the current historically low rates.

Should You Refinance Your House Now or Wait?

Refinancing your mortgage into a lower rate loan could potentially save you thousands of dollars a year so don’t wait too long.  It can also make your monthly payments more manageable by extending your remaining loan term.  With home loan rates forecasted to go up in the near in future, another reason to refinance would be to reduce the risk of an adjustable rate mortgage by stabilizing the monthly payments with a fixed rate home loan.

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August 12, 2010

Home Mortgage Rates Stay Low

Category: Loan Origination News,Mortgage Rate Report – admin – 12:07 am

Zillow reported today that 30-year fixed-rate home loans inched up a bit higher in the latest week.  Of course low mortgage rates typically boost mortgage origination and home loan activity.  In addition, cash out refinancing typically puts more money into consumers pocket to help drive the economy.  The Zillow Mortgage Marketplace published a article indicating that lower home loan rates also make homes more affordable as the housing market copes with the absence of government support.  30-year fixed rate loans are, the most widely used mortgages, were 4.30% on Tuesday afternoon, up from 4.28 % at the same time last week, according to .  The MBA also reported that the 30-year fixed mortgage rate peaked at 4.34% on Friday.  FHA rates also dropped.

Home mortgage rates on other types of mortgages were mixed.  15-year fixed mortgage rates were 3.86%, up from 3.85% the prior week. Rates for 5/1 adjustable-rate mortgages, or ARMs, set at a fixed rate for five years and adjustable each following year, were 3.27%, unchanged from the prior week.

Zillow’s rates are based on thousands of custom mortgage interest rates submitted daily to anonymous borrowers through the website. They are not marketing rates, or from a weekly survey.  Mortgage rates, which are linked to yields on Treasuries and yields on mortgage-backed securities, appear poised to move lower. Yields move inversely to price.  Treasuries rallied on Tuesday after the Federal Open Market Committee, the Federal Reserve’s policy-making arm, said it plans to reinvest principal payments from its mortgage holdings to buy long-dated U.S. debt.

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May 3, 2010

Cash Out Refinancing Activity Drops to Record Low

Category: Freddie Mac,Mortgage News,Mortgage Rate Report – admin – 10:25 pm

Cash refinancing plummeted once again as borrowers found it difficult to get approved.  30-year mortgage interest rates remain at a record low, but people who can get approved for home equity or cash out refinance loans are few and far between.  Freddie Mac’s report indicated that the total mortgage portfolio declined significantly in March, dropping 9.1% on an annualized basis from February figures.  This was the 3rd straight month that the portfolio decreased in size.  The portfolio at the end of March was valued at $2.225 trillion.  The annualized growth rate for the entire year is -4.4%.  In February, Freddie Mac announced it would begin purchasing substantially all 120 days or more delinquent mortgages from its related fixed-rate and adjustable rate PCs, which totaled approximately $73 billion.

However, according to the Monthly Volume Summary issued by Freddie Mac, the mortgage related investment portfolio skyrocketed, increasing by an annualized rate of 35.5%.  In February the portfolio was contracting at an annualized rate of 18.5.  The surge in the size of the retained portfolio was partially a result of government sponsored enterprise’s purchase of single family mortgage loans that were 120 days or more delinquent from its PCs.

Home loan delinquencies in all of Freddie Mac’s categories dropped for the first time in the past year.  4.13% of single family mortgages were delinquent at the end of March compared to 4.20% in February and 2.41% in February 2009. The delinquency rate for the non-credit enhanced portion of the portfolio decreased from 3.20% in February to 3.18% in March and the credit enhanced portion dropped from 9.12% to 8.87%.  Multi-family vacancies were also down slightly from 0.25% to 0.24%.

Freddie Mac also announced that, during the 1st quarter of 2010, one-half of borrowers who refinanced their conventional loans benefited from an interest rate reduction of at least 16 %.  The Enterprise’s first quarter Refinance Report stated that the average borrower moved into a loan with a rate 0.9 percentage points lower than their old loan.

The majority of “mortgage refinance” activity during the period either kept their outstanding loan balance the same or reduced it as a result of the refinancing.  18% of borrowers were involved in cash out refinance transactions that put cash in to the transaction to reduce the balance.  “Cash-out” borrowers, those who increased the home loan balance by at least 5%, represented 28% of new home loans.  This is the second lowest percentage of cash-out mortgages in a quarter since Freddie Mac began tracking the data in 1985.  The fourth quarter of 2009 had the lowest cash out figure at 24%. Through most of 2006 and 2007 over 80% of homeowners who refinanced increased the principal balance of their mortgages. The home equity cashed out in the first quarter of 2010 totaled $9 billion, the smallest quarterly inflation-adjusted amount since the third quarter of 2000. During the 2006-2007 period referenced above the cash-out numbers each quarter were in the $70-85 billion range.  Freddie Mac attributed the decline in cash-out numbers to reduced home prices and tighter underwriting standards for loan-to-value ratios.  The median appreciation of the collateral property was a negative 4% over the median prior loan life of 4.0 years.

Date is collected from a sample of properties on which Freddie Mac has funded two successive loans, and the latest loan is for refinance rather than for purchase. The analysis does not track the use of funds made available from these mortgage refinance loans.  “Rates on thirty-year fixed-rate mortgages during the first quarter remained low, averaging 5.0% in Freddie Mac’s Primary Mortgage Market Survey®,” noted Frank Nothaft, Freddie Mac vice president and chief economist. “The median interest-rate savings for borrowers who refinanced their conventional loan in the first quarter was 0.9 percentage points. Refinances were about three-fourths of originations during the first quarter. In total, the lower rate translates into about $2 billion in interest savings for these borrowers over the first 12 months of the new loan.”

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February 24, 2010

Mortgage Loan Applications Drop 8.5 Percent

According to the Mortgage Bankers Association, the mortgage loan application volume filed in the U.S. last week decreased by 8.5%, compared with the previous week.  Mortgage interest rates increased during the week ended Friday compared with the week before, according to the MBA weekly survey. 1st and 2nd mortgage rates have been declining for most of the year. The survey covers about half of all U.S. retail residential home loan applications.

The share of applications filed for a mortgage refinance dropped again last week. Mortgage marketing executive, Bryan Dornan believes, “the decrease in refinance applications can be directly attributed to homeowners becoming more educated on what is need to qualify for a refinance loan in today’s credit crunch.” Dornan continued, “Borrowers have either been denied recently or they understand that have late payments on their mortgage payment will prevent them from qualifying with traditional lenders.  Borrowers continue to seek help refinancing existing mortgages dropped to 68.1% of total loan applications from 69.3% the previous week.  The four-week moving average for all home mortgages was up 1.6%.

Adjustable-rate home loans made up 4.7% of total applications, up from 4.4% the previous week.  Rates on 30-year fixed-rate mortgages averaged 5.03%, up from 4.94% the previous week, while 15-year fixed-rate mortgages averaged 4.35%, up from 4.33%. The one-year ARMs interest rate grew to 6.8% from 6.67%.

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January 27, 2010

Mortgage Rates Rise After Fed Meeting

Mortgage rates improved a few basis points yesterday. Home loan applications have decreased across the country over the last few weeks.  Home lenders were somewhat subdued in passing along mortgage rate improvements though. This is a function of a few reasons. First, mortgage-backed securities prices have held to a tight range over the course of the week. The second reason is a bit more obvious, the FOMC meeting ended today at 2:15pm. This was a major market event, so it makes sense that mortgage lenders would be defensive ahead of a scheduled event that had the potential to move interest rates in either direction. Before getting to the impact of the FOMC on mortgage rates, allow me to recap the day’s economic data releases. Both conventional and FHA mortgage rates ticked up slightly.

 

Early this morning, the Mortgage Bankers’ Association released their weekly applications index. The MBA survey covers over 50 % of all US residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts.  The data gives economists a look into consumer demand for mortgage loans.  A rising trend of mortgage applications indicates an increase in home buying interest, a positive for the housing industry and economy as a whole.  Furthermore, in a low mortgage rate environment, such a trend implies consumers are seeking out lower monthly payments which can result in increased disposable income and therefore more money to spend on discretionary items or to pay down other debt.

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The report indicated a 3.3% decline in purchase application activity and a 15.1% decline in refinances.  Of note, the MBA issued a rare comment: “Although rates remain low, there appears to be a smaller pool of borrowers who are willing and able to refinance at today’s rates.” I agree, mortgage rates in the low 5% range are still extremely aggressive when you look back at the history of mortgage rates, but I think a more accurate statement would have been “many borrowers want to refinance to take advantage of near record low mortgage rates, but the tightening of lender guidelines has made it too difficult for borrowers to qualify.”   Maybe that’s what the MBA was really trying to say? What is your opinion?

For more on the MBA Applications Index and the potential impact on the Fed’s intentions to exit the MBS market, check out the other mortgage news stories.  We also received another look into the strength of housing: the New Home Sales survey. This survey is primarily based on a sample of houses selected from building permits. Since a “sale” is defined as a deposit taken or sales agreement signed, this can occur prior to a permit being issued. Changes in sales price data reflect changes in the distribution of houses by region, size, etc., as well as changes in the prices of houses with identical characteristics. It takes four months to establish a trend of new home purchases.

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October 13, 2009

Mortgage Refinancing Applications Rise

Category: Mortgage News,Mortgage Rate Report – admin – 10:27 pm

The Mortgage Bankers Association said Wednesday Mortgage-refinancing applications rose last week as home mortgage rates declined.  Refinance loan applications increased 18.2 % last week, the MBA said, following the third straight week where rates on 30-year home loans stayed below 5%. This brings mortgage refinance applications to their highest level since May.   “Such low refinance rates are spurring mortgage loan demand,” said Frank Northaft, Freddie Mac vice president and chief economist. On Thursday, Freddie Mac said the average rate on 30-year home loans stood at 4.87 %, down 4.94 % from last week. This is the lowest rate since the week of May 21, when they averaged 4.82 %. The record low on mortgage rates is 4.78 %, set last spring.   Average rates on 30-year fixed rate mortgages stood at 5.94 % this time last year.   Homeowners who are considering home refinancing their mortgage may want act soon.  Mortgage rates could inch back up as the home purchases diminish.

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