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refinance (10)

Increased Mortgage Activity in Wisconsin

Posted by Michael Collins, CDPE, SFR on February 24, 2012 at 5:55am

Low home loan ratesIncreased Mortgage Activity

Although the winter months have traditionally been a slow time in the real estate market, business has seen significant improvement across Wisconsin. While it may be premature to proclaim that the recession is ending, these signs do point to an improvement in the overall economy.

Starting Off 2012 with a Bang

Across the state the number of home purchases increased by 11 percent in January 2012 in comparison to the number of homes sold in January 2011. This is a continuation of the trend that began in October of 2011. Although the average home price is still down from the levels of 2006, the improved activity is a good sign.

Refinancing is Hot now

Along with improvements in home sales, refinancing has been quite popular lately. The record low interest rates have caused quite a few people to investigate refinancing their home. Recent reports show that as much as 80% of mortgage applications have been for refinancing.

Primary Key to Fuel Home Sales and Price Improvements

The majority of economists agree that it is too soon to determine if the surge in home sales will last. However, they all agree on one point. A steady, stable growth in the number of people able to return to full time work will drastically help the housing market.

Still a Buyer’s Market

The good news for buyers is the available inventory makes it possible for a buyer to review multiple homes and find the one that is best for their needs. The recent statistics show that the current inventory of homes for sale is quite large, but the numbers are moving down. Along with the incredibly low interest rate this marks a great time for new homebuyers to get in their first home as well as for current homeowners to consider selling for either a bigger property or a home in a better area.

Short Sales and Foreclosures add Properties to the Mix

While home prices have declined in recent years due to the struggling economy, some of the best deals can be found in the case of foreclosures and short sales. It is common for a short sale to be in a much better condition than a foreclosure. Most of these owners were living in the home right up until the time they sold the property and moved on. This means that a home that was part of a short sale has a good chance of being in move-in condition. For the do-it-yourself type of people, a foreclosure could be a way to get a home at a tremendous discount and have the option of adding paint, carpet, and fixtures to customize the home to their liking.

Original Post - Increased Mortgage Activity in Wisconsin

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Freddie Mac Weekly Update: 30-Year Fixed-Rate Mortgage Drops to 5 Percent

Posted by Howard Bell on February 24, 2011 at 3:25pm

 

30-year fixed-rate mortgage: Averaged 4.95 percent with an average 0.6 point for the week ending February 24, 2011, down from last week when it averaged 5.0 percent. Last year at this time, the 30-year FRM averaged 5.05 percent. .

The 15-year fixed-rate mortgage: Average 0.7 point, down from last week when it averaged 4.27 percent. A year ago at this time, the 15-year FRM averaged 4.40 percent.

Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 3.8 percent this week, with an average 0.6 point, down from last week when it averaged 3.87 percent. A year ago, the 5-year ARM averaged 4.16 percent.

One-year Treasury-indexed ARMs: Averaged 3.40 percent this week with an average 0.6 point, up from last week when it averaged 3.39 percent. At this time last year, the 1-year ARM averaged 4.15 percent.

Freddie Sayz
Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac

Fixed mortgage rates eased again this holiday week amid mixed inflation data reports. Although the core consumer price index for January rose slightly above the market consensus, house prices fell 4.1 percent in the fourth quarter of 2010 compared to the same period in 2009, according to the S&P/Case-Shiller National Index In addition, the level of the index was the lowest since the fourth quarter of 2002

Low mortgage rates and home prices are sustaining affordability in the housing market. Existing home sales rose for the third consecutive month in January and were at the strongest pace in eight months, the National Association of Realtors reported; only the Northeast region experienced a slowdown in sales

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Freddie Mac Weekly Update: 30-Year Fixed-Rate Mortgage Drops to 5 Percent

Posted by Howard Bell on February 17, 2011 at 2:00pm

 

30-year fixed-rate mortgage: Averaged 5.0 percent with an average 0.7 point for the week ending February 17, 2011, down from last week when it averaged 5.05 percent. Last year at this time, the 30-year FRM averaged 4.93 percent.

The 15-year fixed-rate mortgage: Averaged 4.27 percent with an average 0.7 point, down from last week when it averaged 4.29 percent. A year ago at this time, the 15-year FRM averaged 4.33 percent.

Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 3.87 percent this week, with an average 0.6 point, down from last week when it averaged 3.92 percent. A year ago, the 5-year ARM averaged 4.12 percent.

One-year Treasury-indexed ARMs: Averaged 3.39 percent this week with an average 0.6 point, up from last week when it averaged 3.35 percent. At this time last year, the 1-year ARM averaged 4.23 percent.

Freddie Sayz

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac

Fixed mortgage rates eased slightly this week and continue to be very affordable. Prior to 2009, interest rates for 30-year fixed-rate mortgages had never been at 5 percent since our survey began in April 1971. In both 1981 and 1982, the rates were over three times as high as they are today.

The housing market is struggling to regain traction despite still historically low rates. New construction on one-family homes dipped slightly in January to an annualized pace of 413,000 units, which was the fewest number since May 2009. In addition, homebuilder confidence didnt improve for the third consecutive month in February.

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Mortgage Bankers Weekly Update: Mortgage Applications Decrease as Rates Jump

Posted by Howard Bell on February 17, 2011 at 1:59pm

Mortgage Bankers Association for the week of 2/16/2010


Market Composite Index: (loan application volume) a measure of mortgage loan application volume, decreased 9.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 7.9 percent compared with the previous week.

Refinance Index: decreased 11.4 percent from the previous week and is the lowest Refinance Index recorded in the survey since the week ending July 3, 2009.

Purchase Index: decreased 5.9 percent from one week earlier. The unadjusted Purchase Index decreased 0.9 percent compared with the previous week and was 18.2 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: decreased to 64.0 percent of total applications from 66.6 percent the previous week. This is the fourth straight week the share has declined.

Arm Share: increased to 6.0 percent from 5.9 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

Mortgage rates remained above 5% last week, up almost a full percentage point from their October lows, and refinance volume continued to drop, said Michael Fratantoni, MBAs Vice President of Research and Economics. Applications for home purchases also declined on a seasonally adjusted basis. Buyers have not returned to the market as rising rates have reduced
affordability, to some extent .

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FHA Short Refinance Program

Posted by Jan Baron, RDCPro, CSP, BPOR on August 21, 2010 at 1:10pm
Effective September 7, 2010 homeowners who qualify can apply for an FHA Short Refinance. Here are some of the requirements.

1. Home must be worth less than the current mortgage
2. Current mortgage must be Non-FHA
3. Homeowner must be current on their mortgage
4. Homeowner must have a credit score of 500+
5. Property must be primary residence
6. This program is voluntary and must be agreed upon by All lien holders
7. First lien holder must agreed to write off at least 10% of unpaid balance
8. Loan to value ratio to be no more than 115%

Just as with the many other homeowner assistance programs, the banks are not required to participate.Another drawback is the second lien holder. They have been responsiblefor many short sales and loan modification failures. They too are notrequired to participate.

I heard about this program late lastyear. A few lenders were already offering the program. However, when Iasked for details, they admitted very few homeowners were eligible. Inaddition, reducing a principal 10% is hardly a source of relief forthose who bought between 2001-2007 in Riverside County, CA. Thoseprincipals would have to be reduced around 50% to be of value.

Iwish I could be more optimistic, but I see another government sponsoredprogram that is complicated, hard to qualify for, and once againprolongs the inevitable.
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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

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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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
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Diminished quality loan pools also create a higher default rate...

Posted by Linda McKissick on November 14, 2009 at 4:00am
Fitch Solutions reported this week that its pricing index for subprime residential mortgage-backed securities (RMBS) originated in 2004 fell by 16.7 percent in November compared to just one month earlier.Other vintages included in Fitch’s study, from 2005, 2006, and 2007, showed small gains on a month-to-month basis. The gains helped to temper Fitch’s total market subprime RMBS price index so that it recorded only a “marginal” decline, according to the firm.While prices among recent vintage U.S. subprime RMBS continue to stabilize, 2004 is seeing a substantial drop-off in performance with no signs of improvement, Fitch said in its study.At first glance these statistics may seem to paint the more recent vintages in a better light … showing “gains”, “stabilizing”, and other affirmative-sounding depictions. But Fitch says the reason its 2004 subprime price index is deteriorating is because the 2004 loans are higher quality.Recent loan level analysis conducted by Fitch Solutions of the indices’ constituents revealed a significant uptick in the constant prepayment rate (CPR) of the 2004 vintage, meaning the credit-quality of a large number of these loans is high enough that they are being refinanced to allow mortgagors to take advantage of current low interest rates.The CPR for the 2005-2007 vintages, on the other hand, remained unchanged due to the lower quality loan-to-value ratios precluding much refinancing, Fitch explained.“As the good quality loans are refinanced, the remaining pools are on average of lower credit quality, a factor that largely caused the drop in price for the 2004 Subprime Price Index,” said Thomas Aubrey, managing director at Fitch and author of the study. “Credit quality among the pools will continue to converge over time as better quality borrowers take advantage of refinancing opportunities, thus leaving the remaining pool with more consistent weaker borrowers.”With these weaker, diminished quality loan pools also comes a higher default rate – another factor contributing to the declining performance of the 2004 subprime RMBS, Fitch said.DSNews 11/13/09
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Fannie Mae guidelines may stiffle condo market....

Posted by Suzanne Leedy on March 6, 2009 at 11:23am
I came across a new problem today that may force more foreclosures. If you are in a condo and there are more than 15% of owners who are delinquent in their condo fee, you are out of the guidelines of Fannie Mae. So, no new loans and no refinance for any of the current owners or potential buyers. I would be interested to hear your thoughts on this.I think it just highlights how deep and pervading the mortgage mess has become.
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