Blog

arms (46)

Freddie Mac Weekly Update: Remain Unchanged

Posted by Howard Bell on June 3, 2010 at 1:07pm

30-year fixed-rate mortgage: Averaged 4.79 percent with an average 0.8 point for the week ending June 3, 2010, up slightly from last week when it averaged 4.78 percent. Last year at this time, the 30-year FRM averaged 5.29 percent.

The 15-year fixed-rate mortgage: Averaged 4.20 percent with an average 0.7 point, down slightly from last week when it averaged 4.21 percent. A year ago at this time, the 15-year FRM averaged 4.79 percent. The 15-year FRM has not been lower since Freddie Mac started tracking the 15-year FRM in August of 1991 and breaks last week's record low.

Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 3.94 percent this week, with an average 0.7 point, down from last week when it averaged 3.97 percent. A year ago, the 5-year ARM averaged 4.85 percent.

One-year Treasury-indexed ARMs: Averaged 3.95 percent this week with an average 0.7 point, unchanged from last week when it averaged 3.95 percent. At this time last year, the 1-year ARM averaged 4.81 percent. The 1-year ARM has not been lower since the week ending May 27, 2004 when it averaged 3.87 percent.

Freddie Sayz

The economy grew at a slower rate than originally reported in the first three months of the year, according to the Bureau of Economic Analysis , which suggests inflation will remain tame in the near term, said Frank Nothaft, Freddie Mac vice president and chief economist.

As a result, mortgage rates held at historic levels this week. In fact, rates on 15-year fixed rate mortgages set another record low for the third week in a row. There are also signs that credit conditions may be improving. The number of homeowners with private mortgage insurance who became current on their mortgages outnumbered those who defaulted for the third month in a row in April, according to data compiled by the Mortgage Insurance Companies of America

Related
Real Estate in an IRA
When Hiring a Property Management Company
Strategic Defaults: A Strategic Option
Read more…

Freddie Mac Weekly Update: Rates Stable

Posted by Howard Bell on May 2, 2010 at 10:39am
Rates Mostly Unchanged This Week

30-year fixed-rate mortgage: Averaged 5.06 percent with an average 0.7 point for the week ending April 29, 2010, down slightly from last week when it averaged 5.07 percent. Last year at this time, the 30-year FRM averaged 4.78 percent.

The 15-year fixed-rate mortgage: Averaged 4.39 percent with an average 0.7 point, unchanged from last week when it averaged 4.39 percent. A year ago at this time, the 15-year FRM averaged 4.48 percent.

Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 4.00 percent this week, with an average 0.6 point, down from last week when it averaged 4.03 percent. A year ago, the 5-year ARM averaged 4.80 percent.

One-year Treasury-indexed ARMs: Average 0.5 point, up from last week when it averaged 4.22 percent. At this time last year, the 1-year ARM averaged 4.77 percent.

Freddie Sayz

Mortgage rates on 30-year fixed loans have averaged about 5 percent over the first four months of this year, staying within a band of roughly a quarter percentage point and virtually matching 2009s annual average, said Frank Nothaft, Freddie Mac vice president and chief economist. These low rates have been helping to moderate house price declines over the course of the year.

Prices on existing homes showed a 12-month increase of 0.7 percent in February, which was the first annual increase since December 2006, according to the S&P/Case-Shiller® 20-city composite index [PDF]. In addition, nine cities experienced positive growth, matching the number in January. Further, the Census Bureaus Constant Quality price index showed that new home prices rose 2.5 percent in the first quarter on an annual basis.

Related Articles
FHAFinancing Now Available For REO Properties
Expect Mortgage rates To Rise
Increase RentalIncome and Lower Your Vacancies
Read more…

Mortgage Bankers Weekly Update

Posted by Howard Bell on April 17, 2010 at 8:57am

Mortgage Bankers Association for the week of 4/14/2010

Market Composite Index: (loan application volume) decreased 9.6 percent on a seasonally adjusted basis from one week earlier. This is the third lowest Market Index recorded in the survey since the end of June 2009.

Refinance Index: decreased 9.0 percent from the previous week, marking the index’s fifth consecutive decline

Purchase Index: decreased 10.0 percent compared with the previous week and was 17.5 percent lower than the same week one year ago. The decline in purchase applications was driven by government purchase applications, which decreased 19.1 percent from last week, compared to a decrease of 2.0 percent in conventional purchase applications.

Refinance Share of Mortgage Activity: increased to 58.9 percent of total applications from 58.7 percent the previous week.
increased to 6.3 percent from 6.2 percent of total applications from the previous week.

Arm Share: increased to 6.2 percent from 5.2 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

Economic growth and a recovering job market are good news for housing, but we certainly have not seen any significant improvement in housing activity to date. Existing home sales declined in February, and new home sales actually reached a new record low that month. Additionally, the number of existing homes on the market increased, as sellers began to list their properties in anticipation of the spring. Rising inventories on top of weak demand continues to put pressure on prices, with most measures showing either declines or weak gains over the winter.

We predict that mortgage originations will fall by about 38 percent to $1.3 trillion in 2010 from an estimated $2.1 trillion in 2009. Purchase originations will fall by around 2 percent to $726 billion, as home prices stabilize, and home sales increase. Refinance originations will fall by about 126 percent to $604 billion in 2010 as mortgage rates are expected to rise through the year.

Related Articles
FHA Financing Now Available For REO Properties
Commercial Property: Money Becoming Available
Good News! MBAA New Forebearance Program
Read more…

Mortgage Bankers Weekly Update

Posted by Howard Bell on December 19, 2009 at 8:12am
Mortgage Bankers Association for the week of 12/16/2009Market Composite Index: (loan application volume) increased 0.3 percent on a seasonally adjusted basis from one week earlier.Refinance Index: increased 11.1 percent from the previous week and the seasonally adjusted Purchase Index increased 4.0 percent from one week earlier.Purchase Index: decreased 0.1 percent from one week earlier. The unadjusted Purchase Index decreased 3.6 percent compared with the previous week and was 15.4 percent lower than the same week one year agoRefinance Share of Mortgage Activity: increased to 74.4 percent of total applications from 72.1 percent the previous week.ARM Refinance Activity: decreased to 4.1 percent from 4.7 percent of total applications from the previous week, which is the lowest share since mid-June 2009.MBA outlook: (Excerpted from mbaa.org)In summary the MBAA sees another year of high employment, rising home sales and prices beginning to stabilize. But continued weakness in the job market and excess supply and shadow inventory will slow any recovery in the housing market.But, property values will not recover until unsold inventory returns to normal levels. Affordability is at record levels, yet there is no strong indication that the demand recovering. People do not yet seem to trust the recovery and many do not have the necessary down payment or can clear tighter loan qualifications The MBAA site economic report indicates a fragile recovery, but makes note that without credit the recovery remains tepid at best. The site makes note: Smaller businesses and consumers are heavily dependent on banks for obtaining credit, and there is little evidence that, as yet, banks have loosened the purse strings. Bank loans to businesses and consumers are still falling with few signs of abatement. To be sure, part of the decline stems from declining demand, but the magnitude of the fall is too large to be explained by weakness in demand aloneThanks for Readingwww.yourpropertypath.comRelated ArticlesReverse MortgagesARM's - How Do They Work?Relocation TipsHow to Spot a Predatory Lender
Read more…

Freddie Mac Weekly Mortgage Update: Still Below 5 Percent

Posted by Howard Bell on December 19, 2009 at 8:12am
Mortgage Rates Follow Bond Yields Higher30-year fixed-rate mortgage: Averaged 4.94 percent with an average 0.7 point for the week ending December 17, 2009, up from last week when it averaged 4.81 percent. Last year at this time, the 30-year FRM averaged 5.19 percent.The 15-year fixed-rate mortgage: Averaged 4.38 percent with an average 0.6 point, up from last week when it averaged 4.32 percent. A year ago at this time, the 15-year FRM averaged 4.92 percent.Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 4.37 percent this week, with an average 0.6 point, up from last week when it averaged 4.26 percent. A year ago, the 5-year ARM averaged 5.60 percent.One-year Treasury-indexed ARMs: Averaged 4.34 percent this week with an average 0.5 point, up from last week when it averaged 4.24 percent. At this time last year, the 1-year ARM averaged 4.94 percent.Freddie SayzMortgage rates followed bond yields higher once again this week amid signs of an improving economy, said Frank Nothaft, Freddie Mac vice president and chief economist. On the consumer side, retail sales jumped 1.3 percent in November and consumer sentiment, as measured by the University of Michigan, rose above the market consensus forecast to the highest reading since September. Industrial production also showed large gains in November.Interest rates on 30-year fixed-rate mortgages have remained below five percent over the past seven weeks and are contributing to a wave of refinance activity. Roughly three out of four mortgage applications were for refinancing during the first two weeks of December, according the Mortgage Bankers Association .Thanks for Readingwww.yourpropertypath.comRelated ArticlesShould You Stop Paying Your MortgageStock Market Views On The Housing RecoveryThe Coming Mortgage Debt Reduction Programs
Read more…

Mortgage Bankers Weekly Update

Posted by Howard Bell on November 22, 2009 at 10:16am
Mortgage Bankers Association for the week of November 18, 2009Market Composite Index: (loan application volume) decreased 2.5 percent on a seasonally adjusted basis from one week earlier. .Refinance Index: decreased 1.4 percent from the previous weekPurchase Index: decreased 7.9 percent compared with the previous week and was 14.7 percent lower than the same week one year ago.Refinance Share of Mortgage Activity: increased to 72.9 percent of total applications from 71.5 percent the previous week. This refinance share is the highest share since the week ending May 15, 2009ARM Refinance Activity: decreased to 5.4 percent from 5.5 percent of total applications from the previous week.MBA outlook: (Excerpted from mbaa.org) The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 9.64 percent of all loans outstanding as of the end of the third quarter of 2009.Its job loss that is now hurting people. Job losses continue to increase and drive up delinquencies and foreclosures because mortgages are paid with paychecks, not percentage point increases in GDP. A perfect observation by Jay Brinkmann, MBAs Chief Economist.According to the MBAA.org site: T he outlook is that delinquency rates and foreclosure rates will continue to worsen before they improve. First, it is unlikely the employment picture will get better until sometime next year and even then jobs will increase at a very slow pace. Perhaps more importantly, there is no reason to expect that when the economy begins to add more jobs, those jobs will be in areas with the biggest excess housing inventory and the highest delinquency rates.Thanks for Readingwww.yourpropertypath.comRelated ArticlesFHA Losses: What it MeansFHA Has New RulesLoan Modification: A Primer
Read more…
Liberty House Realty | Online Montessori Preschool | Digital Marketing Agency