Potpourri of information today: Commentary on economic events for this week from my good friend in CA, summary of rate activity from Freddie Mac, prediction on what mtg rates will do this year from Mortgage Bankers Assn, Press Release from Federal Reserve on upcoming Credit Card regulations. Have a wonderful weekend - the markets will be closed on Monday due to the Holiday. Please take a few moments to ponder the words of a great leader, Dr. Martin Luther King, Jr and realize the great impact he's had on our nation.
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| Mortgage Interest Rates for Fixed Rate Mortgages* | |||||||||||||||||||||||||||||||||||||||||||||||||
| Rates as of Friday January 15, 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||
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| *Rates are subject to change due to market fluctuations and borrower's eligibility. | |||||||||||||||||||||||||||||||||||||||||||||||||
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From Dick Lepre, San Francisco, Friday, January 15, 2009:
Core CPI is +0.1%. That was consensus. Prior was 0.0%. Industrial Production was +0.6% right at consensus. Capacity Utilization was 72% - slightly above consensus and prior. University of Michigan Consumer Sentiment was 72.8, consensus was 74.0, prior was 72.5. None of these fundamentals are strong enough to stem the bullish daily tech and we are seeing Treasuries rally. We could see lower mortgage rates next week.
Freddie Mac Weekly Survey - January 14, 2010 :
McLean, VA - Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.06 percent for the week ending January 14, 2010, down from last week when it averaged 5.09 percent. Last year at this time, the 30-year FRM averaged 4.96 percent.
The 15-year FRM this week averaged 4.45 percent down from last week when it averaged 4.50 percent. A year ago at this time, the 15-year FRM averaged 4.65 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.32 percent this week, down from last week when it averaged 4.44 percent. A year ago, the 5-year ARM averaged 5.25 percent.
"Interest rates for fixed-rate mortgages eased a little further this week, while ARM rates were mixed," said Frank Nothaft, Freddie Mac vice president and chief economist. "With fixed mortgage rates staying near a record low, many homeowners are taking the opportunity to refinance. For instance, over the past three-and-a-half months, on average more than 75 percent of conventional mortgage applications were for refinance transactions, according to the Mortgage Bankers Association.
"The Federal Reserve recently reported positive news in both the housing market and the overall state of the economy in its January 13th regional economic report, which spanned the last few months of 2009. Economic activity improved in 10 of its 12 districts. Home sales, especially for lower-priced homes, increased due in part to the homebuyer tax credit and house prices appeared to have changed little since its last report."
MBA Mortgage Finance Forecast, January 12, 2010:
Interest Rates predicted for 30 year mortgage: Q1 5.4% Q2 5.9% Q3 6.0% Q4 6.1%
Press Release
Release Date: January 12, 2010
For immediate release
The Federal Reserve Board on Tuesday approved a final rule amending Regulation Z (Truth in Lending) to protect consumers who use credit cards from a number of costly practices. Credit card issuers must comply with most aspects of the rule beginning on February 22.
"This rule marks an important milestone in the Federal Reserve's efforts to ensure that consumers who rely on credit cards are treated fairly," said Federal Reserve Governor Elizabeth A. Duke. "The rule bans several harmful practices and requires greater transparency in the disclosure of the terms and conditions of credit card accounts."
Among other things, the rule will:
•· Protect consumers from unexpected increases in credit card interest rates by generally prohibiting increases in a rate during the first year after an account is opened and increases in a rate that applies to an existing credit card balance.
•· Prohibit creditors from issuing a credit card to a consumer who is younger than the age of 21 unless the consumer has the ability to make the required payments or obtains the signature of a parent or other cosigner with the ability to do so.
•· Require creditors to obtain a consumer's consent before charging fees for transactions that exceed the credit limit.
•· Limit the high fees associated with subprime credit cards.
•· Ban creditors from using the "two-cycle" billing method to impose interest charges.
•· Prohibit creditors from allocating payments in ways that maximize interest charges.
In December 2008, the Federal Reserve adopted final regulations prohibiting unfair credit card practices and improving the disclosures consumers receive in connection with credit card accounts. This rule amends aspects of those regulations to implement provisions of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit Card Act), which was enacted in May 2009.
The final rule represents the second stage of the Federal Reserve's implementation of the Credit Card Act. On July 15, 2009, the Board issued an interim rule implementing the provisions of the Credit Card Act that went into effect on August 20, 2009. In addition to finalizing that interim rule, this rule implements the provisions of the Credit Card Act that go into effect on February 22, 2010. The remaining provisions of the Credit Card Act go into effect on August 22, 2010 and will be implemented by the Federal Reserve at a later date.
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