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Posts Tagged mortgage rates

Mortgage Applications Rise 10.9% this Week

Jul 9

Posted by Rich Epstein in Mortgage News, Mortgage Stats | No Comments

mortgage-logoThe 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.


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Are Mortgage Rates Weather Related?

Jul 1

Posted by Rich Epstein in Mortgage News | No Comments

thermometerAs recorded by Freddie Mac, since 2006, 30-year fixed-rate conforming mortgage rate have made a habit of rising in May, June, July and August before settling down through football season.  This year, the “June Swoon” looks especially strong.  Mortgage rates are higher by 3/4 percent versus late-May and we’re only at the start of the summer trend.

The biggest reason why mortgage rates are up is because of inflation fears.  Inflation devalues the U.S. dollar and renders fixed-rate investments — a set that includes mortgage-backed bonds — become less attractive to investors. When the dollar is worth less, bond repayments are worth less, too.   This is why traders don’t like holding mortgage bonds in their portfolios when inflation looms — it can be a real money-loser.  So, mortgage bonds tend to sell-off when inflation is coming which, in turn, causes mortgage-backed bond prices to fall.

Bottom line for cocktail party conversation: Lower bond prices yields higher mortgage rates.

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Mortgage Rates Hold Steady

Jan 29

Posted by Rich Epstein in Mortgage Stats | No Comments

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.

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Mortgage Rates Dip Below 6%

Nov 30

Posted by Rich Epstein in Mortgage News, Mortgage Stats | No Comments

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.

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New FHA Loan Limits in Rhode Island

Mar 15

Posted by Rich Epstein in Mortgage News | No Comments

The Federal Housing Administration, generally known as FHA, provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories$200,160.00 was the limit for a single family FHA maximum loan. That limit has been raised to $316,350. Multi family loan limits have been raised as well, as the spreadsheet indicates. Is this a magic fox for all of Rhode Island’s real estate problems? Of course not, but it is a start. It is one piece of the very confusing puzzle which makes up our real estate market. Quite frankly, anything at this point which can help get inventory moved is a positive thing. So by raising these limits, people who utilize FHA loans now have more selection to choose from. Below are the complete adjustments for these loans.

         

 

 1 Unit Loan Limit 2 Unit Loan Limit 3 Unit Loan Limit 4 Unit Loan Limit

 

 $316,350 $359,397 $434,391 $539,835

It is important to understand what exactly an FHA mortgage is. Simply put, it is a mortgage for a house, mobile home or a property improvement that is written by a private lender and insured by the Federal Housing Administration. The FHA provides this loan guarantee program in lieu of mortgage insurance so qualified buyers can get into these loans with minimal down payment, and the bank doesn’t take any risk lending the money. FHA guidelines are not as strict as Fannie Mae. The most utilized program involves a minimum of just 3% down payment. This payment can also be in the form of a gift from a relative or even a non-profit organization.

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