Here are some interesting facts taken from the website Urbanturf.com. I though thought it was interesting and wanted to share it with everyone
After staying above 3.5 percent for several months, long-term mortgage rates dropped below that benchmark this week.
On Thursday, Freddie Mac reported 3.43 percent with an average 0.8 point as the average on a 30-year fixed-rate mortgage. Last week, rates averaged 3.54 percent. Rates have more or less been on an upward trajectory since hitting a record low of 3.31 percent in November.
From Freddie Mac vice president and chief economist Frank Nothaft:
Mortgage rates fell further this week following a lackluster employment report for March. The economy added just 88,000 net new jobs last month, about one-third as many as February and the fewest since June 2012. In addition, approximately 496,000 people left the workforce causing the unemployment rate to fall to 7.6 percent.
Here's one from Realtor.com
Mortgage rates saw a decline for the second consecutive week, according to the latest survey by mortgage buyer Freddie Mac. Loan rates fell once again as response to weak unemployment data reported by the Labor Department last week and continue to move closer to historic lows.
The average rate for a 30-year fixed loan saw a considerable dip, falling to 3.43% from 3.54% last week. If the current trend continues, loans may come close to the record low reach in November, 3.31%, which represented the lowest average rate on record dating back to 1971.
The low rates have helped keep home-buying and refinancing desirable as the market continues its slow recovery, notes mortgage expert Al Bowman:
If we see an increase in spending, the bond market will likely fall and mortgage rates will rise as it would indicate consumers are spending more than thought, fueling economic growth. However, a weaker than expected reading could push bond prices higher and mortgage rates lower, especially if the PPI gives us favorable results also.
In addition to falling 30-year fixed loans, the average rate on a 15-year fixed mortgage is also creeping towards the record low. Listed at 2.74% a week ago, 15-year fixed rates fell to 2.65%, which is a touch above the record low achieved in November, 2.63%.
Hybrid adjustable-rate mortgages also saw a slight decline. The average rate on a 5-year ARM fell from 2.65% to 2.62% this week, while the rate on a one-year ARM dipped ever-so-slightly to 2.62%, down .01% from a week ago.
Of the panelists polled by Bankrate.com in their weekly Mortgage Rate Trend Index, 33% believe that mortgage rates will rise in the coming week, while 66% believe that rates will remain unchanged. “Unchanged until the next international crisis or whatev,” says Bankrate.com assistant managing editor Holden Lewis. “Lately, mortgage rates seem captive to international events, which are unpredictable.”
Showing posts with label mortgage. Show all posts
Showing posts with label mortgage. Show all posts
Friday, April 12, 2013
Friday, July 13, 2012
Record breaking lows for Fixed Rate Mortgages
This article just came out in the RREIN Daily e-news magazine and I thought it was very helpful information. If you want to read more about this go to: www.FreddieMac.com
Another Week of Record-Breaking Lows for Fixed-Rate Mortgages
RISMEDIA, Friday, July 13, 2012— Freddie Mac (OTC: FMCC) recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates continuing to find new all-time record lows amid easing bond yields following June's lackluster employment report. Both the average 30-year and 15-year fixed-rate mortgage hit new lows. The average 30-year fixed has been below 4 percent for 16 weeks. The average 15-year fixed has been below 3 percent for 7 weeks.
Results showed that the 30-year fixed-rate mortgage (FRM) averaged 3.56 percent with an average 0.7 point for the week ending July 12, 2012, down from last week when it averaged 3.62 percent. Last year at this time, the 30-year FRM averaged 4.51 percent.
Additionally, the 15-year FRM this week averaged 2.86 percent with an average 0.7 point, down from last week when it averaged 2.89 percent. A year ago at this time, the 15-year FRM averaged 3.65 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.74 percent this week, with an average 0.6 point, down from last week when it averaged 2.79 percent. A year ago, the 5-year ARM averaged 3.29 percent.
The 1-year Treasury-indexed ARM averaged 2.69 percent this week with an average 0.4 point, up from last week when it averaged 2.68 percent. At this time last year, the 1-year ARM averaged 2.95 percent.
"Following a lackluster employment report for June, long-term U.S. Treasury bond yields eased somewhat this week allowing fixed mortgage rates to reach yet another record low,” says Frank Nothaft, vice president and chief economist, Freddie Mac. “Only 80,000 net new jobs were added to the economy last month, not enough to lower the unemployment rate from 8.2 percent. This was the concern of the Federal Reserve's monetary policy meeting held June 19-20. Minutes released from that meeting on July 11, revealed that a few members felt further monetary stimulus was needed to promote satisfactory growth in employment to meet the Committee's goal.”"
Another Week of Record-Breaking Lows for Fixed-Rate Mortgages
RISMEDIA, Friday, July 13, 2012— Freddie Mac (OTC: FMCC) recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates continuing to find new all-time record lows amid easing bond yields following June's lackluster employment report. Both the average 30-year and 15-year fixed-rate mortgage hit new lows. The average 30-year fixed has been below 4 percent for 16 weeks. The average 15-year fixed has been below 3 percent for 7 weeks.
Results showed that the 30-year fixed-rate mortgage (FRM) averaged 3.56 percent with an average 0.7 point for the week ending July 12, 2012, down from last week when it averaged 3.62 percent. Last year at this time, the 30-year FRM averaged 4.51 percent.
Additionally, the 15-year FRM this week averaged 2.86 percent with an average 0.7 point, down from last week when it averaged 2.89 percent. A year ago at this time, the 15-year FRM averaged 3.65 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.74 percent this week, with an average 0.6 point, down from last week when it averaged 2.79 percent. A year ago, the 5-year ARM averaged 3.29 percent.
The 1-year Treasury-indexed ARM averaged 2.69 percent this week with an average 0.4 point, up from last week when it averaged 2.68 percent. At this time last year, the 1-year ARM averaged 2.95 percent.
"Following a lackluster employment report for June, long-term U.S. Treasury bond yields eased somewhat this week allowing fixed mortgage rates to reach yet another record low,” says Frank Nothaft, vice president and chief economist, Freddie Mac. “Only 80,000 net new jobs were added to the economy last month, not enough to lower the unemployment rate from 8.2 percent. This was the concern of the Federal Reserve's monetary policy meeting held June 19-20. Minutes released from that meeting on July 11, revealed that a few members felt further monetary stimulus was needed to promote satisfactory growth in employment to meet the Committee's goal.”"
Wednesday, May 23, 2012
Lenders, Mortgages, & Escrows! OH MY!
Purchasing a new home can be a daunting task, and if you are a first time buyer or if this is your 20th home purchase, we always want to make the process go as smoothly as possible. Here is a list of questions that you can ask your lender or can help you in narrowing down your search for the best lender for your needs.
Please remember that we also have an extensive list of lenders that might work for you, please give us a call and we would be happy to provide that information to you.
10 questions to ask your Lender
Be sure you find a loan that fits your needs with these comprehensive questions.
What are the most popular mortgage loans you offer?
Which type of mortgage plan do you think would be best for us and why?
Are your rates, terms, fees, and closing costs negotiable?
Will I have to buy private mortgage insurance? If so, how much will it cost and how long will it be required? NOTE:
Private mortgage insurance usually is required if you make less than 20 percent down payment, but most lenders will let you discontinue the policy when you’ve acquired a certain amount of equity by paying down the loan.
Who will service the loan? Your bank? Another company?
What escrow requirements do you have? What are escrows?
How long is your loan lock-in period (the time that the quoted interest rate will be honored?) Will I be able to obtain a lower rate if they drop during this period?
How long will the loan approval process take?
How long will it take to close the loan?
Are there any charges or penalties for prepaying the loan?
Used with permission from the Real Estate Checklists & Systems
(www.realestatechecklists.com)
Please remember that we also have an extensive list of lenders that might work for you, please give us a call and we would be happy to provide that information to you.
10 questions to ask your Lender
Be sure you find a loan that fits your needs with these comprehensive questions.
What are the most popular mortgage loans you offer?
Which type of mortgage plan do you think would be best for us and why?
Are your rates, terms, fees, and closing costs negotiable?
Will I have to buy private mortgage insurance? If so, how much will it cost and how long will it be required? NOTE:
Private mortgage insurance usually is required if you make less than 20 percent down payment, but most lenders will let you discontinue the policy when you’ve acquired a certain amount of equity by paying down the loan.
Who will service the loan? Your bank? Another company?
What escrow requirements do you have? What are escrows?
How long is your loan lock-in period (the time that the quoted interest rate will be honored?) Will I be able to obtain a lower rate if they drop during this period?
How long will the loan approval process take?
How long will it take to close the loan?
Are there any charges or penalties for prepaying the loan?
Used with permission from the Real Estate Checklists & Systems
(www.realestatechecklists.com)
Thursday, April 1, 2010
Making Home Affordable Program
The Obama Administration's Making Home Affordable Program includes opportunities to modify or refinance your mortgage to make your monthly payments more affordable.
In February 2009, the Obama Administration introduced a comprehensive Financial Stability Plan to address the key problems at the heart of the current crisis to get our economy back on track. A critical piece of that effort is Making Home Affordable, a plan to stabilize the housing market and help struggling homeowners get relief and avoid foreclosure.
The Home Affordable Modification Program provides eligible homeowners the opportunity to modify their mortgages to make them more affordable. Over one million homeowners have already gotten help under the program. The program is on track to help 3 to 4 million homeowners by 2012.
On March 26, the Obama Administration announced expanded flexibility for mortgage servicers to assist more unemployed homeowners and homeowners who are underwater through the program.
The Second Lien Modification Program (2MP) offers homeowners a way to modify their second mortgages to make them more affordable when their first mortgage is modified under the Home Affordable Modification Program.The Home Affordable Refinance Program gives homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly payments.
The Home Affordable Foreclosure Alternatives Program provides opportunities for homeowners who can no longer afford to stay in their home but want to avoid foreclosure to transition to more affordable housing through a short sale or deed-in-lieu of foreclosure.
For more information visit www.MakingHomeAffordable.gov.
Friday, January 22, 2010
Changes in FHA Loan Requirements
Yesterday it was announed by the Federal Housing Administration that FHA loan requirements are changing sometime this year and that there will be tighter restrictions for FHA backed loans.
The changes will be relatively small for most borrowers. The changes include a raise in the upfront mortgage premium (MIP) from 1.75% to 2.25%. Also, the mimimum down payments for borrowers whose credit score will raise from 3.5% to 10%. And finally, allowable seller concessions will be cut in half.
These changes are expected to take effect this spring or summer. More information can be found here or you can get in touch with The Mike Webb Team.
The changes will be relatively small for most borrowers. The changes include a raise in the upfront mortgage premium (MIP) from 1.75% to 2.25%. Also, the mimimum down payments for borrowers whose credit score will raise from 3.5% to 10%. And finally, allowable seller concessions will be cut in half.
These changes are expected to take effect this spring or summer. More information can be found here or you can get in touch with The Mike Webb Team.
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