rates: Foreclosure Crisis Now Spreading To Prime Mortgages
- 06/09/09 11:15 AM
The prime borrowers are rapidly going into foreclosure, especially in those states of mass unemployment or decreasing property values, all which saw a huge run-up during the housing boom. It's a marked shift from earlier this year, when foreclosures were driven by defaults on subprime loans. It has major implications - ravaging the credit scores of those borrowers who once had impeccable records and dragging down property values in the more wealthy neighborhoods. It also threatens to weaken the housing recovery. "It's definitely a concern," says Brian Bethune at IHS Global Insight. "(Unemployment) is a major driver of foreclosures, and it will frustrate … (1 comments)
rates: Housing Rebound Is On The Rise
- 06/09/09 10:58 AM
Sales are the uproar for the economic housing situation this week. Residential sales and pending sales are adequately increasing and a rebounding real estate market could soon start stimulating the economy. Even Federal Reserve Chairman Ben Bernanke told Congress last week that essentially the worst is over, the housing market is stabilizing, and we're heading out of recession in the second half of the year. Pending home sales heightened by 6.7 percent in April. April made the third consecutive month of significant increases. April was the highest pending sale total for any month in the last seven years. In the Northeast region, pending sales rocketed upwards during April by an astounding … (0 comments)
rates: Fed Plans Spark Drop In 30 Year Rates
- 04/03/09 11:40 AM
Freddie Mac has reported that the average interest on a 30-year mortgage fell from 4.98 percent to 4.85 percent in less than a week. This drop in interest rates resulted in a 38-year low. This decrease has made housing incredibly affordable. The average price of a home is $172,000, making the mortgage payment only $878.38 for a principal and interest loan. This diminishing rate came shortly after the Feredal Reserve announced their plan to make another purchase of $750 billion in mortgage-backed securities. They plan to purchase $300 million in Treasuries as well. President Obama claims that refinancing is now possible for 40 percent of mortgages and encourages home … (0 comments)
rates: Survey Says "Now Is A Good Time To Buy"
- 03/30/09 10:15 AM
Despite the current concern of the economy, 78% of potential first-time home buyers say that now is a great time to buy a home.In early March, Century 21 hosted a survey for potential first-time home buyers. Of the 1,000 prospective U.S. first-time home buyers surveyed, 68% think now is a better time to buy rather than 6 months ago.Record breaking low prices are the driving motivation for first-time home buyers with more than 80% first-time home buyers (85 percent) saying they consider current home prices affordable and 73% citing that taking advantage of current prices is an extensive factor in their decision to purchase. Interestingly enough, potential … (1 comments)
rates: Decreased 30-year rate at 4.89% Increases Mortgage Application Submissions
- 03/20/09 06:29 AM
The submission of mortgage applications increased last week when interest rates decreased, fueling refinancing activity. The average rate for traditional, 30-year fixed-rate mortgages dropped from 4.96% to 4.89% in only a week, according to the MBA report. The average rate for 15-year fixed-rate mortgages dipped from 4.54% to 4.52% in a week. One-year adjustable-rate mortgages fell to 6.20% from 6.21%. In an effort to save the housing market, the Federal Reserve said in November that it would buy up to $500 billion in mortgage-backed securities. Since then, interest rates have plummeted. The Mortgage Bankers Association said Wednesday its weekly application index climbed 21.2% for … (1 comments)
rates: Mortgage Rates Continue Falling to Record Lows
- 01/12/09 08:43 AM
Mortgage rates have fallen to all-time lows for the fourth consecutive week. The 30-year mortgage rates averaged 5.01 percent this week, compared to last week's 5.1 percent. Last year at this time, rates averaged 5.87 percent. This makes the tenth week that the 30-year mortgages have fallen. In part, this is due to the Federal Reserve's recent purchases of mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae. Other rates that have dropped include 15-year fixed rates. Those dropped from last weeks 4.83 percent to this weeks 4.62 percent. 15-year mortgage rates averaged 5.43 percent at this time last year. Also, 5-year hybrid … (0 comments)
rates: Mortgage Rates Plunge to Record Lows
- 12/23/08 04:11 AM
Freddie Mac reports that the 30-year fixed mortgage rate fell to 5.17 percent down from 5.47 percent last week, which is the lowest it has been since the survey's inception in 1971, in response to the Federal Reserve's cut in the federal funds rate to near zero.Interest on 15-year fixed loans has also slipped from 5.20 percent to 4.92 percent. Meanwhile, the five-year hybrid adjustable mortgage rate dropped from 5.82 percent to 5.6 percent. The one-year ARM dipped from 5.09 percent to 4.94 percent. Last year, the 30-year fixed rate stood at 6.14 percent, the 15-year fixed rate at 5.79 percent, the five-year hybrid ARM at 5.9 percent, and … (1 comments)
rates: The Government Bailout of Frannie & Freddie
- 09/08/08 11:21 AM
Some historic news yesterday. The government has officially bailed out and taken over Fannie Mae and Freddie Mac. There has been speculation over the last month that this could happen. It brings both good news and bad news. The good news is that it will allow banks to recover from more than $500 billion in subprime mortgages. This will increase liquidity and confidence in the mortgage market and may end the mortgage liquidity crisis. There is a very good chance that mortgage rates will decline as we have already seen some significant drop in interest rates today. Some experts are saying that … (3 comments)
rates: Rates Vary Based on Economic Status, But Show Progress in Housing Market
- 09/07/08 07:46 AM
Freddie Mac released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage averaged 6.35 percent with an average 0.7 point for the week ending on September 04, 2008, down from last week when it averaged 6.40 percent. Last year at this time, the 30-year fixed-rate mortgage averaged 6.46 percent.
The 15-year fixed-rate mortgage this week averaged 5.90 percent with an average 0.6 point, down from last week when it averaged 5.93 percent. A year ago at this time, the 15-year fixed-rate mortgage averaged 6.15 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 5.97 percent this week, with an average 0.6 point, down from last … (0 comments)
rates: 30-Year Mortgage Rates Drop
- 05/24/08 01:27 PM
After four weeks in an upward trajectory, Freddie Mac reports that long-term mortgage rates are falling again. The average interest on a 30-year fixed loan settled at 5.98 percent this week, down 0.03 percent from the prior week. Rates on 15-year fixed mortgages, meanwhile, slipped 0.5 percent for the week to an average of 5.55 percent. Borrowing costs drifted slightly higher, however, on adjustable-rate products. Five-year ARMs bumped up 0.04 percent to 5.61 percent, while one-year ARMs moved up 0.06 percent to 5.24 percent. Source: Chicago Sun-Times (05/23/08) … (0 comments)
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