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mortgage (114)

Mortgage Bankers Association: Purchases Up!

Posted by Howard Bell on April 3, 2010 at 11:47am
Mortgage Bankers Association for the week of 3/31/2010

Market Composite Index: (loan application volume) increased 1.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1.5 percent compared with the previous week.

Refinance Index: decreased 1.3 percent from the previous week and the seasonally adjusted Purchase Index increased 6.8 percent from one week earlier. This is the highest Purchase Index since the week ending October 30, 2009.

Purchase Index: increased 6.8 percent compared with the previous week and was 9.3 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: decreased to 63.2 percent of total applications from 65.0 percent the previous week. This is the lowest refinance share recorded in the survey since the week ending October 23, 2009.

Arm Share: increased to 5.2 percent from 4.8 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

Purchase applications have increased over the past month, and are now at their highest level since last October when many homebuyers were rushing to get loans closed before the expected expiration of the homebuyer tax credit, said Michael Fratantoni, MBAs Vice President of Research and Economics. We may be seeing a similar pattern now, as the extended version of the tax credit ends next month.


The housing industry faces another challenge during the spring building season stemming from the end on March 31 of the Federal Reserve’s program of buying mortgage-backed securities. The impact on mortgage interest rates that follows is not expected to be dramatic, but it will certainly act as a damper on home buying. The inventory of unsold homes has declined but remains well above normal levels, and will likely remain relatively high given pending foreclosures

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Do you know who is eligible for a Short Sale under the new federal regulations, HAFA?

Posted by Carolyn Kruse on April 1, 2010 at 4:00pm

Here are the basic eligibility requirements.

* The property is owner occupied.

*The mortgage loan is a first lien mortgage and originated on or before 1/1/2009.

*The mortgage is delinquent or default is reasonably forseeable.

*The current unpaid principal balanceequal to or less than $729,750.

*The borrower's total monthly mortgage payment exceeds 31% of his or her gross monthly income.

The lender must evaluate and offer a HAMP mod to borrower before consideration to HAFA options.

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Freddie Mac Weekly Update: Rates Flat

Posted by Howard Bell on March 18, 2010 at 12:46pm



30-year fixed-rate mortgage: Averaged 4.96 percent with an average 0.7 point for the week ending March 18, 2010, up slightly from last week when it averaged 4.95 percent. Last year at this time, the 30-year FRM averaged 4.98 percent.

The 15-year fixed-rate mortgage: Averaged 4.33 percent with an average 0.6 point, up slightly from last week when it averaged 4.32 percent. A year ago at this time, the 15-year FRM averaged 4.61 percent.

Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 4.09 percent this week, with an average 0.6 point, up from last week when it averaged 4.05 percent. A year ago, the 5-year ARM averaged 4.98 percent.

One-year Treasury-indexed ARMs: Averaged 4.12 percent this week with an average 0.6 point, down from last week when it averaged 4.22 percent. At this time last year, the 1-year ARM averaged 4.91 percent.

Freddie Sayz

Mortgage rates for fixed-rate mortgages were virtually unchanged this week as the effects of the prior storms emerged in recent housing data, said Frank Nothaft, Freddie Mac vice president and chief economist. New construction slowed by 5.9 percent in February to 575,000 homes. Both the South and Northeast regions had all the declines due to the snow storms. In addition, homebuilder confidence unexpectedly dipped in March according to the NAHB/Wells Fargo Housing Market Index .

With house prices starting to stabilize and even rise, homeowners on aggregate are slowly building back equity in their homes based on figures from the Federal Reserve Board . After losing almost $7.9 trillion in home equity since the end of 2006, homeowners regained almost $1.1 trillion over the past three quarters ending in 2009.

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Mortgage Bankers Weekly Update

Posted by Howard Bell on March 18, 2010 at 12:46pm


Mortgage Bankers Association for the week of 3/17/2010

Market Composite Index: (loan application volume) decreased 1.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1.7 percent compared with the previous week. .

Refinance Index: decreased 1.7 percent from the previous week and the seasonally adjusted Purchase Index decreased 2.3 percent from one week earlier.

Purchase Index: decreased 1.8 percent compared with the previous week and was 13.9 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: increased to 67.3 percent of total applications from 67.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 4.6 percent from 5.1 percent of total applications from the previous week.

Arm Share: decreased to 4.6 percent from 5.1 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

The most recent data on the housing market continues to show profound weakness .

Inventories of unsold homes have declined, but remain elevated. Expect further additions to the supply of homes on the market due to the still growing number of homes in or potentially in foreclosure. We expect that home prices may stabilize in 2010, but wont begin to grow appreciably until late 2011 or early 2012.

Although the Fed has reaffirmed plans to end the MBS purchase program by the end of March, mortgage rates havent budged to this point. We still anticipate that mortgage rates will likely rise by about half a percentage point in the second quarter, and then another half a percentage point through the remainder of the year, as the economic recovery continues. Mortgage rates at 6 percent should significantly slow refinance activity, but should not slow the modest housing market recovery we are forecasting.

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Freddie Mac Weekly Update: Rates Flat

Posted by Howard Bell on March 18, 2010 at 12:45pm



30-year fixed-rate mortgage: Averaged 4.96 percent with an average 0.7 point for the week ending March 18, 2010, up slightly from last week when it averaged 4.95 percent. Last year at this time, the 30-year FRM averaged 4.98 percent.

The 15-year fixed-rate mortgage: Averaged 4.33 percent with an average 0.6 point, up slightly from last week when it averaged 4.32 percent. A year ago at this time, the 15-year FRM averaged 4.61 percent.

Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 4.09 percent this week, with an average 0.6 point, up from last week when it averaged 4.05 percent. A year ago, the 5-year ARM averaged 4.98 percent.

One-year Treasury-indexed ARMs: Averaged 4.12 percent this week with an average 0.6 point, down from last week when it averaged 4.22 percent. At this time last year, the 1-year ARM averaged 4.91 percent.

Freddie Sayz

Mortgage rates for fixed-rate mortgages were virtually unchanged this week as the effects of the prior storms emerged in recent housing data, said Frank Nothaft, Freddie Mac vice president and chief economist. New construction slowed by 5.9 percent in February to 575,000 homes. Both the South and Northeast regions had all the declines due to the snow storms. In addition, homebuilder confidence unexpectedly dipped in March according to the NAHB/Wells Fargo Housing Market Index .

With house prices starting to stabilize and even rise, homeowners on aggregate are slowly building back equity in their homes based on figures from the Federal Reserve Board . After losing almost $7.9 trillion in home equity since the end of 2006, homeowners regained almost $1.1 trillion over the past three quarters ending in 2009.

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Mortgage Bankers Weekly Update

Posted by Howard Bell on March 18, 2010 at 12:45pm


Mortgage Bankers Association for the week of 3/17/2010

Market Composite Index: (loan application volume) decreased 1.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1.7 percent compared with the previous week. .

Refinance Index: decreased 1.7 percent from the previous week and the seasonally adjusted Purchase Index decreased 2.3 percent from one week earlier.

Purchase Index: decreased 1.8 percent compared with the previous week and was 13.9 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: increased to 67.3 percent of total applications from 67.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 4.6 percent from 5.1 percent of total applications from the previous week.

Arm Share: decreased to 4.6 percent from 5.1 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

The most recent data on the housing market continues to show profound weakness .

Inventories of unsold homes have declined, but remain elevated. Expect further additions to the supply of homes on the market due to the still growing number of homes in or potentially in foreclosure. We expect that home prices may stabilize in 2010, but wont begin to grow appreciably until late 2011 or early 2012.

Although the Fed has reaffirmed plans to end the MBS purchase program by the end of March, mortgage rates havent budged to this point. We still anticipate that mortgage rates will likely rise by about half a percentage point in the second quarter, and then another half a percentage point through the remainder of the year, as the economic recovery continues. Mortgage rates at 6 percent should significantly slow refinance activity, but should not slow the modest housing market recovery we are forecasting.

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Freddie Mac: 30-Year Fixed-Rate Mortgage Drops Slightly

Posted by Howard Bell on March 11, 2010 at 4:46pm
30-year fixed-rate mortgage: Averaged 4.95 percent with an average 0.7 point for the week ending March 11, 2010, down from last week when it averaged 4.97 percent. Last year at this time, the 30-year FRM averaged 5.03 percent.

The 15-year fixed-rate mortgage: Averaged 4.32 percent with an average 0.7 point, down from last week when it averaged 4.33 percent. A year ago at this time, the 15-year FRM averaged 4.64 percent.

Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 4.05 percent this week, with an average 0.6 point, down from last week when it averaged 4.11 percent. A year ago, the 5-year ARM averaged 4.99 percent. Averaged 4.11 percent this week, with an average 0.6 point, down from last week when it averaged 4.16 percent. A year ago, the 5-year ARM averaged 5.08 percent.

One-year Treasury-indexed ARMs: Averaged 4.22 percent this week with an average 0.6 point, down from last week when it averaged 4.27 percent. At this time last year, the 1-year ARM averaged 4.80 percent.

Freddie Sayz

During a light week of mixed economic reports, mortgage rates eased somewhat, said Frank Nothaft, Freddie Mac vice president and chief economist. Pending existing home sales fell 7.6 percent in January, well below the market consensus of a 1 percent gain. Meanwhile, the economy lost only 36,000 jobs in February, fewer than market forecasts, and the unemployment rate held steady at 9.7 percent. In addition, revisions added a net 35,000 workers to January and December combined.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nations residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

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Mortgage Bankers Association for the week of 3/10/2010

Posted by Howard Bell on March 11, 2010 at 4:45pm

Market Composite Index: (loan application volume) increased 0.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1.2 percent compared with the previous week.

Refinance Index: decreased 1.5 percent the previous week and the seasonally adjusted Purchase Index increased 5.7 percent from one week earlier.

Purchase Index: increased 7.2 percent compared with the previous week and was 10.7 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: decreased to 67.2 percent of total applications from 69.1 percent the previous week. The refinance share is at its lowest level since it was 66.1 percent in October 2009.

Arm Share: increased to 4.8 percent from 4.7 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

The economy is growing again. 4Q growth of 2009 exceeded expectations due to strong growth in business inventories. However inventory replacement is a short lived spurt, unless consumers buy. Weakness in the job market and a fragile recovery are likely to keep consumers from spending on big ticket items like houses and cars.

Existing home sales fell back in December and new home builders are not upbeat. The Fed remains unlikely to raise rates, however, they are going to end their MBS purchase program. This will certainly cause a rise in interest rates as the marketplace demands higher rates to compensate for risk.

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Freddie Mac Weekly Mortgage Rate Commentary:

Posted by Howard Bell on February 27, 2010 at 4:59pm
30-Year Fixed-Rate Mortgage Over 5 Percent

30-year fixed-rate mortgage: Averaged 5.05 percent with an average 0.7 point for the week ending February 25, 2010, up from last week when it averaged 4.93 percent. Last year at this time, the 30-year FRM averaged 5.07 percent.

The 15-year fixed-rate mortgage: Averaged 4.40 percent with an average 0.7 point , up from last week when it averaged 4.33 percent. A year ago at this time, the 15-year FRM averaged 4.68 percent.

Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 4.16 percent this week, with an average 0.6 point, up from last week when it averaged 4.12 percent. A year ago, the 5-year ARM averaged 5.06 percent.

One-year Treasury-indexed ARMs: Averaged 4.15 percent this week with an average 0.6 point, down from last week when it averaged 4.23 percent. At this time last year, the 1-year ARM averaged 4.81 percent.

Freddie Sayz

Interest rates for 30-year fixed mortgages followed long-term bond yields higher and rose above 5 percent this week amid a mixed set of economic data reports said Frank Nothaft, Freddie Mac vice president and chief economist. For instance, the January producer price index jumped well above the market consensus, but the consumer price index remained subdued and consumer confidence declined to the lowest level since April 2009, according to the Conference Board .

There were also varying reports as to the current state of the housing market. The S&P/Case-Shiller national home price index rose for the third consecutive quarter in the fourth quarter, albeit at a slower rate, and the 20 city composite index showed an increase in December 2009 for the seventh month in a row; six metropolitan areas experienced positive year over year growth, compared to four in November. New home sales, however, unexpectedly slowed in January to the smallest pace since records began in 1963, and the supply of homes at the current sales rate rose to 9.1 months, the most since May 2009.

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Mortgage Bankers Association Weekly Update

Posted by Howard Bell on February 27, 2010 at 4:58pm

Mortgage Bankers Association for the week of 2/24/2010

Market Composite Index: (loan application volume) decreased 8.5 percent on a seasonally adjusted basis from one week earlier

Refinance Index: decreased 8.9 percent from the previous week. The seasonally adjusted Purchase Index decreased 7.3 percent from one week earlier, putting the index at its lowest level since May 1997.

Purchase Index: decreased 3.6 percent compared with the previous week and was 13.4 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: decreased to 68.1 percent of total applications from 69.3 percent the previous week.

Arm Share: increased to 4.7 percent from 4.4 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

The economy is growing again. 4Q growth of 2009 exceeded expectations due to strong growth in business inventories. However inventory replacement is a short lived spurt, unless consumers buy. Weakness in the job market and a fragile recovery are likely to keep consumers from spending on big ticket items like houses and cars.

Existing home sales fell back in December and new home builders are not upbeat. The Fed remains unlikely to raise rates, however, they are going to end their MBS purchase program. This will certainly cause a rise in interest rates as the marketplace demands higher rates to compensate for risk.

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FHA makes Policy Changes to Lower Risk

Posted by Franklin E. Rodebaugh on January 21, 2010 at 3:20am
I just saw this article by Carrie Bay of DS News. Something we will all need to keep in mind as we qualify buyers.The Federal Housing Administration (FHA) said Wednesday that it is raising homebuyers’ up-front costs for mortgage insurance, tripling downpayment requirements for borrowers with low credit scores, and cutting seller concessions in half.The agency says the new policies for its government-insured mortgages will help FHA better manage loan risk and losses. According to FHA’s latest monthly activity report, nearly 9 percent of the single-family mortgages it insures against default are at least 90 days past due. The record-high delinquency rate has sent the number of claims FHA has been forced to pay out skyrocketing and left its capital reserve fund depleted – falling below what’s required by law for the first time since the agency was formed.The FHA currently backs about 30 percent of all new loans for home purchases and 20 percent of refinanced loans. The agency’s share of the mortgage financing market has increased nearly 1,000 percent (yes, that’s 1,000) since 2006, as private lenders pulled back and the credit crunch set in – it’s a position that FHA Commissioner David Stevens says can’t be carried on for the long-term. He insists it’s essential that the federal mortgage insurer’s portfolio eventually return to pre-crisis levels and back to its original credo of providing financing for homebuyers in underserved parts of the country.But for now, Stevens said, “Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important.”Stevens called the new policy changes “the most significant steps to address risk in the agency’s history.”As part of the plan, FHA is increasing up-front mortgage insurance premiums paid by borrowers from 1.75 percent to 2.25 percent. The change will go into effect “in the spring,” the agency said.Stevens has also requested legislative approval to raise the maximum annual premiums that FHA can charge. If this authority is granted by Congress, then the second step will be to shift some of the premium increase from up-front to the annual fees assessed. FHA says this shift will allow it to increase capital reserves with less impact to the consumer, because the annual premium is paid over the life of the loan instead of at the time of closing.New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5 percent downpayment program. Homebuyers with less than a 580 FICO score will be required to put down at least 10 percent. This change is expected to take effect early this summer.Changes are being made on the seller side of the equation, as well. Beginning this summer, the amount that sellers can kick in – typically in the form of closing costs – will drop from 6 percent to 3 percent of the home’s value. FHA says the current level exposes the agency to excess risk by creating incentives to inflate appraised value, and the reduction will bring its criteria in line with industry standards on seller concessions.In addition to the policy changes introduced, the mortgage insurer plans to beef up oversight of FHA lenders. Beginning February 1, lender performance rankings will be available to the public on HUD’s Web site.FHA is also planning to implement statutory authority to enforce indemnification provisions for lenders that delegate their insuring processes, and is pursuing legislative authority to increase enforcement on FHA lenders. The authority would include requiring all approved mortgagees to assume liability for all the loans they originate and underwrite, as well as the ability to withdraw FHA approval for a lender nationwide if the performance of one of its regional branches is faulted.Robert E. Story, Jr., chairman of the Mortgage Bankers Association (MBA), commented “MBA supports FHA’s efforts to root out those lenders who pose undue risk to the program. We will work with FHA to ensure those efforts include fair and thorough investigations and appropriate due process for lenders who could be impacted.”The agency expects these steps to tighten up its standards will help mitigate rising defaults and pay-out claims, and give a much needed lift to its capital reserves in order to avert what so many economists are proposing – that the federal agency itself will need a taxpayer bailout.
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FHA Financing Now Available For REO Properties

Posted by Howard Bell on January 19, 2010 at 1:33pm
FHA Press releaseIn an effort to stabilize home values, HUD Secretary Donovan announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties.HUD will allow FHA financing for buyers of REO property. This is a temporary waiver of policy, good for one year. The hope is that it will help soak up supply and stabilize the markets. The waiver takes effect February 1, 2010 for one year.To avoid speculation or flipping of property, HUD has set down some stringent rules. They are certainly not looking to reignite the kind of speculation that was partly responsible for the collapse.No Speculators Allowed1. The transactions must be at arms-length.2. No entity of interest between the buyer and seller3. If the sales price of the property is 20% or more above the sellers acquisition cost, the waiver will only apply if the lender meets certain requirements.4. The waiver only applies to forward mortgages but not to the Home Equity Conversion Mortgages.5. FHA currently does not insure a seller owned mortgage, owned less than 90 days. The waiver may give offer borrowers access to FHA temporarily.The policy allows buyers buyers access to FHA-insured financing to buy HUD-owned properties, bank-owned properties, or properties resold through private sales.REsourced from www.yourpropertypath.comYou may republish this article, as long as you do not edit and you agree to preserve all links to the author and www.yourpropertypath.comRelated ArticlesMortgage Lock-Ins - What are theyMortgage Fees - What are they?Mortgage Glossary
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Mortgage Bankers Association for the week of 1/6/2010

Posted by Howard Bell on January 15, 2010 at 4:21pm
Market Composite Index: (loan application volume) increased 14.3 percent on a seasonally adjusted basis from one week earlierRefinance Index: increased 21.8 percent from last week’s holiday adjusted index and increased 73.9 percent from last week’s unadjusted indexPurchase Index: increased 0.8 percent from one week earlier.Refinance Share of Mortgage Activity: increased to 71.5 percent of total applications from 68.2 percent the previous week unchanged at 4.0 percent of total applications from the previous week.Arm Share:: unchanged at 4.0 percent of total applications from the previous week.MBA outlook: (Excerpted from mbaa.org)The December jobs report was indicates a slow recovery. 85,000 jobs lost and an unemployment holding at 10 percent.Bloated inventories of unsold homes, buoyed by continued inflows of foreclosed properties, will keep a lid on home prices for some time. We do not expect more typical rates of home price appreciation until 2012. The Federal Reserve is unlikely to raise rates in 2010, but they will meet their commitment to purchase $1.25 trillion in agency MBS by the end of the first quarter.The MBAA anticipates that mortgage rates will rise by about a percentage point through the year, to end at 6.1 percent. Eye-popping federal budget deficits and positive economic growth will put upward pressure on Treasuries. Yields on mortgage securities will need to increase to get private investors back into the market once the Fed stops its purchases.Thanks for Readingwww.yourpropertypath.comRelated ArticlesThe Coming Mortgage Debt Reduction Programs FHA and Fannie Mae Propose Rule ChangeCitigroup Suggests Mortgage Debt Forgiveness
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Freddie Mac Weekly Mortgage Rate Commentary:

Posted by Howard Bell on January 15, 2010 at 4:21pm
Fixed-Rates Down Slightly While ARMs Are Mixed30-year fixed-rate mortgage: Averaged 5.06 percent with an average 0.7 point 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 fixed-rate mortgage: Averaged 4.45 percent with an average 0.6 point , down from last week when it averaged 4.50 percent. A year ago at this time, the 15-year FRM averaged 4.65 percent.Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 4.32 percent this week, with an average 0.6 point, down from last week when it averaged 4.44 percent. A year ago, the 5-year ARM averaged 5.25 percent.One-year Treasury-indexed ARMs: Averaged 4.39 percent this week with an average 0.5 point, up from last week when it averaged 4.31 percent. At this time last year, the 1-year ARM averaged 4.89 percent.Freddie SayzInterest 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 reportThanks for Readingwww.yourpropertypath.comRelated ArticlesFHA and Fannie Mae Propose Rule ChangeFHA Losses: What it MeansFHA Has New Rules
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Freddie Mac Weekly Mortgage Rate Commentary:

Posted by Howard Bell on January 9, 2010 at 4:57pm
30-year fixed-rate mortgage: Averaged 5.09 percent with an average 0.7 point for the week ending January 7, 2009, down from last week when it averaged 5.14 percent. Last year at this time, the 30-year FRM averaged 5.01 percent.The 15-year fixed-rate mortgage: Averaged 4.50 percent with an average 0.7 point, down from last week when it averaged 4.54 percent. A year ago at this time, the 15-year FRM averaged 4.62 percent.Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 4.44 percent this week, with an average 0.6 point, unchanged from last week when it averaged 4.44 percent. A year ago, the 5-year ARM averaged 5.49 percent.One-year Treasury-indexed ARMs: Averaged 4.31 percent this week with an average 0.6 point, down from last week when it averaged 4.33 percent. At this time last year, the 1-year ARM averaged 4.95 percent.Freddie SayzMortgage rates eased slightly this week after rising consecutively through December, said Frank Nothaft, Freddie Mac vice president and chief economist. Current interest rates for fixed rate mortgages are just about at their annual average for 2009, while ARM rates are considerably below their averages for last year. As the economy strengthens further and the Federal Reserve (Fed) decides to raise its overnight target rate, ARM rates will follow suit because they are typically tied to shorter-term interest rates. However, the federal funds futures market does not anticipate any Fed action until the second half of 2010Thanks for Readingwww.yourpropertypath.comRelated ArticlesThe Politics Of Home Ownership and How It Became Too Easy To OwnHousings Weak Recovery: Lets Follow The MoneyNAR: Existing Home Sales Report
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Mortgage Bankers Association: Weekly Mortgage Survey

Posted by Howard Bell on January 9, 2010 at 4:30pm
Market Composite Index: (loan application volume) decreased 22.8 percent on a seasonally adjusted basis from the prior week.Refinance Index: decreased 30.5 percent from the previous week and the seasonally adjusted Purchase Index decreased 4.0 percent from one week earlier. The following week, the Refinance Index decreased 1.6 percent and the seasonally adjusted Purchase Index increased 3.6 percent.Purchase Index: decreased 33.1 percent the week of Christmas and increased 5.0 percent the week following. This measure was 26.2 percent and 28.2 percent lower, respectively, than the same period a year ago.Refinance Share of Mortgage Activity: mortgage activity for the week ending January 1, 2010 is 68.2 percent, a decrease from 69.6 percent for the week ending December 25, 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.The MBAA sees unemployment rate at about 10% at the end of 2010, and core inflation rates of below 2%. Fed rate is expected to remain at its current level throughout 2010.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 qualificationsThe 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 stopping or slowing down. Part of the decline is declining demand, but the fall is too large to be explained by weakness in demand alone. The banks are simply not yet stepping up to fill the vacuum.Thanks for Readingwww.yourpropertypath.comRelated ArticlesFHA and Fannie Mae Propose Rule ChangeFHA Losses: What it MeansFHA Has New Rules
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Freddie Mac Weekly Mortgage Update: Slightly Higher but Still Affordable

Posted by Howard Bell on January 2, 2010 at 4:36pm
30-Year and 15-Year Rates Still at Incredibly Low Levels30-year fixed-rate mortgage: Average 0.7 point for the week ending December 31, 2009, up from last week when it averaged 5.05 percent. Last year at this time, the 30-year FRM averaged 5.10 percent.The 15-year fixed-rate mortgage: Averaged 4.54 percent with an average 0.7 point, up from last week when it averaged 4.45 percent. A year ago at this time, the 15-year FRM averaged 4.83 percent.Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 4.54 percent with an average 0.7 point, up from last week when it averaged 4.45 percent. A year ago at this time, the 15-year FRM averaged 4.83 percent.One-year Treasury-indexed ARMs: Averaged 4.33 percent this week with an average 0.6 point, down from last week when it averaged 4.38 percent. At this time last year, the 1-year ARM averaged 4.85 percent.Freddie SayzAlthough long-term mortgage rates rose for the fourth week in a row, they still remain affordable by historical standards, said Frank Nothaft, Freddie Mac vice president and chief economist. Based on todays median loan amount of $138,000, monthly principal and interest payments for a 30-year fixed-rate mortgage are close to one third less than a decade ago when rates peaked at 8.6 percent in May 2000.This translates into almost 50 percent less in interest payments over the full 30 year term. Nationally, the housing market is slowly improving. House prices rose for the fifth consecutive month in October to the highest level since the beginning of 2009, according to the S&P/Case-Shiller 20-city composite index . Eleven of the cities experienced positive growth.Thanks for Readingwww.yourpropertypath.comRelated ArticlesFHA Has New RulesLoan Modification: A Primer
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Freddie Mac Weekly Update: Rates Just Over 5%

Posted by Howard Bell on December 27, 2009 at 12:02pm
30-Year and 15-Year Rates Still at Incredibly Low Levels30-year fixed-rate mortgage: Averaged 5.05 percent with an average 0.7 point for the week ending December 24, 2009, up from last week when it averaged 4.94 percent. Last year at this time, the 30-year FRM averaged 5.14 percent.The 15-year fixed-rate mortgage: Averaged 4.45 percent with an average 0.6 point, up from last week when it averaged 4.38 percent. A year ago at this time, the 15-year FRM averaged 4.91 percent.nt.Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 4.40 percent this week, with an average 0.6 point, up from last week when it averaged 4.37 percent. A year ago, the 5-year ARM averaged 5.49 percent.One-year Treasury-indexed ARMs: Averaged 4.38 percent this week with an average 0.6 point, up from last week when it averaged 4.34 percent. At this time last year, the 1-year ARM averaged 4.95%.Freddie SayzAlthough interest rates for 30-year fixed rate mortgages are above 5% this week for the first time since the end of October, they are still around 0.5 percentage points below this years peak set in. ARM rates increased by a lesser amount as the market consensus calls for no rate hikes by the Federal Reserve in the immediate future. Meanwhile, the housing market continues to show improvement. Total existing home sales jumped 7.4% in November to an annualized pace of 6.54 million units, which was the most since February 2007. Moreover, the number of unsold existing homes was the lowest since December 2006 and the number of unsold new homes was the least since April 1971, which may leave future room for new constructionThanks for Readingwww.yourpropertypath.comRelated ArticlesFHA Has New RulesMortgage Bankers: Weekly Update Loan Apps DeclineLoan Modification: A Primer
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Mortgage Bankers Weekly Update: Loan Apps Decline

Posted by Howard Bell on December 24, 2009 at 10:24am
Mortgage Bankers Association for the week of 12/23/2009Market Composite Index: (loan application volume) decreased 10.7 percent on a seasonally adjusted basis from one week earlierRefinance Index: decreased 10.1 percent from the previous week and the seasonally adjusted Purchase Index decreased 11.6 percent from one week earlier.Purchase Index: decreased 13.4 percent compared with the previous week and was 32.7 percent lower than the same week one year agoRefinance Share of Mortgage Activity: increased to 75.9 percent of total applications from 75.2 percent the previous week.ARM Refinance Activity: decreased to 3.8 percent from 4.1 percent of total applications the previous week.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.The MBAA sees unemployment rate at about 10% at the end of 2010, and core inflation rates of below 2%. Fed rate is expected to remain at its current level throughout 2010.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 qualificationsThe 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 stopping or slowing down. Part of the decline is declining demand, but the fall is too large to be explained by weakness in demand alone. The banks are simply not yet stepping up to fill the vacuum.Thanks for Readingwww.yourpropertypath.comRelated ArticlesFreddie Mac Weekly Mortgage Update: Still Below 5 PercentARM's - How Do They Work?The Coming Mortgage Debt Reduction Programs
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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
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