Mortgage rates moved down very slightly once again this week, making this now a four week trend. The benchmark 30-year fixed-rate mortgage fell to 5.55 percent, according to the Bankrate.com national survey of large lenders. One year ago, the mortgage index was 6.77 percent; four weeks ago, it was 5.8 percent. The benchmark 15-year fixed-rate mortgage fell to 4.89 percent. The benchmark 5/1 adjustable-rate mortgage fell to 4.93 percent.
Archive for category Mortgage Stats
North Providence is in bad financial shape. To make up for deficits, they have approved a tax increase from $22.70 per 1000 to $25.60 per 1000. This equals a 12.7% increase! New tax bills are going out at the end of the month. There also may be another supplemental tax increase in January, which has not been approved yet, but more than likely will. Total tax increase is supposed to be 17%.
The volume of mortgage applications filed last week rose 10.9% from the week before, spurred by a surge in refinancings.
Applications to refinance existing home loans rebounded 15.2% for the week ended July 3, while applications for mortgages to purchase homes also increased, up 6.7%.
Overall, the pace of mortgage filings recovered from the week ended June 26, when refinancings had weakened to their lowest level since last November.
Refinancing applications made up 48.4% of all mortgage activity, up from 46.4% the week before, while adjustable-rate mortgages accounted for 4.4%, up from 4.3%.
According to the most recent survey, 30-year fixed-rate mortgages carried an average interest rate of 5.34% last week, unchanged from the week before.
To obtain this rate, the mortgage required payment of an average 1.13 points. A point is 1% of the mortgage amount, charged as prepaid interest.
Fifteen-year fixed-rate mortgages averaged 4.83% last week, up from 4.81% the week before; the mortgage required payment of an average 1.06 points to obtain the rate.
Rates for 30-year home loans fell back this week after soaring to the highest level in seven months a week earlier. The average rate for a 30-year fixed mortgage was 5.38 percent this week, down from 5.59 percent a week earlier.
Rates had risen for three consecutive weeks after yields on long-term government debt, which are closely tied to mortgages rates, had been climbing as investors worried that the huge surplus of government debt hitting the market could trigger inflation.
But data released Wednesday suggested that inflation remains largely in check. Though there are signs that the troubled U.S. housing market is beginning to stabilize, higher rates could threaten or slow down any recovery, since borrowers would be able to borrow less money and might decide to hold off on their purchases.
Simply put, buyers have a certain amount of money they can afford to spend. If interest rates shoot up, then house prices will have to fall to make up the difference. The three-week run-up in rates started to slow home buyer demand.
Freddie Mac released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage averaged 4.78 percent with an average 0.7 point for the week ending April 2, 2009, down from last week when it averaged 4.85 percent. Last year at this time, the 30-year averaged 5.88 percent. The 30-year has not been lower in the life of Freddie Mac’s weekly survey, which dates back to 1971 for the 30-year fixed rate mortgage.
The 15-year fixed rate this week averaged 4.52 percent with an average 0.7 point, down from last week when it averaged 4.58 percent. A year ago at this time, the 15-year averaged 5.42 percent. The 15-year has never been lower in the life of Freddie Mac’s weekly survey, which dates back to 1991 for the 15-year fixed rate mortgage.
Mortgage Rates Hold Steady
Jan 29
Freddie Mac released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 5.10 percent for the week ending January 29, 2009, down from last week when it averaged 5.12 percent. 
Last year at this time, the 30-year FRM averaged 5.68 percent.
The 15-year FRM this week averaged 4.80 percent, unchanged last week when it averaged 4.80 percent. A year ago at this time, the 15-year FRM averaged 5.17 percent.
Five-year hybrid adjustable-rate mortgages (ARMs) averaged 5.27 percent this week, up from last week when it averaged 5.24 percent. A year ago, the 5-year ARM averaged 5.32 percent. One-year Treasury-indexed ARMs averaged 4.90 percent this week, down from last week when it averaged 4.92 percent. At this time last year, the 1-year ARM averaged 5.05 percent.
To obtain the rates, the fixed-rate mortgages required payment of an average 0.7 point, and the ARMs required payment of an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest. The Freddie Mac survey covers conforming mortgages.
Mortgage Rates Dip Below 6%
Nov 30
The 30-year fixed-rate mortgage dropped below 6% on average this week, a seven-week low for the mortgage, according to Freddie Mac’s weekly survey, released on Wednesday.
The mortgage averaged 5.97% for the week ending Nov. 26, down from last week’s 6.04% average. The 30-year mortgage averaged 6.10% a year ago; it hasn’t been lower since Oct. 9, when it averaged 5.94%.
“Interest rates for 30-year fixed-rate mortgages fell for the fourth consecutive week as signs the overall economy is flagging lowered most interest rates market-wide,” said Frank Nothaft, Freddie Mac chief economist, in a news release. “And economic growth in the third quarter was revised downward this week, led by the first decline in consumer spending since the fourth quarter of 1991 and the largest drop since the second quarter of 1980.”
The 15-year fixed-rate mortgage averaged 5.74%, up slightly from last week’s 5.73% average. The mortgage also averaged 5.73% a year ago.
Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 5.86%, down from last week’s 5.87% average. They also averaged 5.86% a year ago. And 1-year Treasury-indexed ARMs averaged 5.18%, down from last week’s 5.29% average. The ARMs averaged 5.43% a year ago.
To obtain the rates, the fixed-rate mortgages required payment of an average 0.7 point, 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 total mortgage amount, charged as prepaid interest.
Single Family Activity Week Ending 9.12.08
Active Single Family Listings: 7292
Average List Price: $ 449,000
Average DOM: 119
Single Family Sold: 101
Average Sale Price: $ 296,000 = 94% List Price
Average DOM: 89
Housing Bill Signed!
Aug 1
President Bush on Wednesday signed into law a housing bill that aims to boost the housing market and solidify mortgage finance giants Fannie Mae and Freddie Mac. Click here to read about Fannie & Freddie.
A larger role for the Federal Housing Administration: The FHA will be allowed to insure up to $300 billion in new 30-year fixed-rate mortgages for at-risk borrowers in owner-occupied homes if their lenders agree to write down loan balances to 90% of the homes’ current appraised value.
The cost of the new FHA program which would begin on Oct. 1 and be in place for just a few years – will be funded by fees from Fannie and Freddie, along with fees paid by both lenders and borrowers.
Not all $300 billion is expected to be used. In fact only about 325,000 people will qualify for this aid under the new guidelines.
A permanent increase in “conforming loan” limits: The law will permanently increase the cap on the size of mortgages guaranteed by Fannie and Freddie to a maximum of $625,500 from $417,000.
A new home-buyer credit (more like a loan): The new law includes a tax refund for first-time home buyers worth up to 10% of a home’s purchase price but no more than $7,500. BUT this is more like an interest-free loan, since it would have to be paid back. You get 15 years to do so.
A ban on down-payment assistance from sellers: The new law eliminates a program that has allowed sellers to provide down payment assistance for FHA loans. The law would also increase to 3.5% from 3% the down payment requirement for borrowers getting FHA loans.
A new affordable housing trust fund: The law establishes a permanent fund to promote affordable housing. The fund will be paid for by fees from Fannie and Freddie.
Grants to states to buy foreclosed properties: The law grants $4 billion to states to buy up and rehabilitate foreclosed properties.
FHA foreclosure rescue: Development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008. Simple math:
VA loan limits: Temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
Risk-based pricing: Stops FHA from using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.
Mortgage Revenue Bond Authority: Authorizes $10 billion in mortgage bonds for refinancing subprime mortgages.
New Loan Originator Requirements: Strengthens the existing mortgage originator licensing and registration system to prevent fraud and will require minimum licensing and education requirements.
