Data released by the Mortgage Bankers Association (MBA) Wednesday shows that consumer demand for mortgages waned last week as interest rates soared to their highest level in nearly seven months.
MBA’s index of total mortgage application volume slipped 2.3 percent for the week ending December 10, 2010, when compared to the previous week.
The organization’s index of new applications for home purchases plummeted 5.0 percent from one week earlier, breaking a three-week streak of increases, but MBA says its purchase index remains near levels last seen in early May.
With mortgage interest rates up more than half a percentage point over the past month, it’s no surprise that refinance activity has also declined sharply. MBA’s refinance index decreased 0.7 percent last week, marking the fifth straight weekly decline for the trade group’s gauge.
MBA reported that the average contract interest rate for 30-year fixed-rate mortgages increased to 4.84 percent for the week ending December 10, up from 4.66 percent the week before – nearly a 20 basis point jump in a mere seven days. This is the highest 30-year fixed-rate observed in the group’s weekly survey since the beginning of May
The average contract interest rate for 15-year fixed-rate mortgages climbed 23 basis points to 4.21 percent last week, up from 3.98 percent the previous week. It’s the highest 15-year fixed-rate reported by MBA since the beginning of June.
“Treasury rates increased last week following news that lower tax rates could be extended for another two years, boosting growth prospects. With this move, mortgage rates reached their highest level in more than six months,” said Michael Fratantoni, MBA’s VP of research and economics.
The Federal Reserve held fast to its plan to buy up $600 billion in Treasury securities at its monetary policy meeting Tuesday. The strategy is intended to keep Treasury rates low, and in turn also drive down mortgage interest rates. But it has yet to bear out the desired outcome, as Fratantoni explained, because of other economic factors that are having a greater influence on the markets.
Paul Dales, U.S. senior economist for the research firm Capital Economics, says it is too soon to judge whether the Fed’s latest round of capital infusion, dubbed QE2, has been a success or a failure.
“[I]n recent weeks the economy has picked up momentum. And … the proposed second fiscal stimulus, if signed into law will surely put less of the burden to boost the economy on the Fed,” Dales said.
“These two developments explain why the markets are not convinced that the Fed will complete the $600bn of Treasury purchases announced at the last meeting in early
November,” Dales continued. “Indeed, Treasury yields continued to rise after [Tuesday’s policy meeting]. But the Fed was never going to perform a u-turn and shrink the size of QE2 just six weeks after announcing it.”
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Article written by Carrie Bay - DSNews.com
The Gray Rider
The Gray Rider Real Estate Co.-
Thursday, December 16, 2010
Friday, December 3, 2010
MORTGAGE RATES ON THE MOVE AGAIN........UPWARD!
They’ve been sitting at half-century lows for months now, but that trend appears to have snapped as mortgage interest rates across the board rose again this week. One industry report released Thursday points out that long-term rates have been heading upward for three weeks straight; another says they’ve now hit a four-month high.
Freddie Mac’s latest survey puts the average rate for 30-year fixed-rate mortgages at 4.46 percent (0.8 point) for the week ending December 2. That’s up from last week’s average of 4.40 percent. Last year at this time, 30-year fixed mortgages were averaging 4.71 percent, according to the GSE.
Freddie’s results are based on data gathered from about 125 lenders nationwide, including thrifts, credit unions, commercial banks, and mortgage lending companies. Rates offered for 15-year fixed mortgages averaged 3.81 percent this week (0.7 point), up from 3.77 percent the week before.
Shorter term mortgage rates also rose in Freddie Mac’s survey. The 5-year adjustable-rate mortgage (ARM) averaged 3.49 percent (0.6 point), up from 3.45 percent last week. The 1-year ARM came in at 3.25 percent (0.6 point), up from 3.23 percent.
Nothaft, VP and chief economist for Freddie Mac, explained that mortgage rates followed bond yields higher this week after newly released economic data suggested the economy may be stronger this quarter than in the third quarter.
A separate study released by Bankrate Thursday called the latest move upward by mortgage rates “notable,” as they hit their highest mark in four months in the company’s survey. Bankrate’s figures are derived from data provided by the top 10 banks and thrifts in the top 10 U.S. markets.
The tracking firm reported that the benchmark conforming 30-year fixed mortgage rate rose to 4.71 percent (0.36 point) this week. That’s up pretty significantly from 4.58 percent reported by the company last week.
The average 15-year fixed mortgage increased from 3.97 percent to 4.07 percent (0.35 point) in Bankrate’s study. The larger jumbo 30-year fixed rate jumped as well, settling at 5.29 percent.
Bankrate also documented a rise in adjustable rate mortgages, with the average 5-year ARM climbing to 3.74 percent and the average 7-year ARM jumping to 4.08 percent.
Bankrate says the November unemployment report due out on Friday could be the catalyst for the next move in mortgage rates, with evidence of solid private-sector job growth fuel for higher rates.
The tracking company’s regular weekly forecast for mortgage rate indicates that we’ll likely see another increase subsequently. Sixty-four percent of the mortgage experts surveyed by Bankrate expect mortgage rates to rise again over the next seven days.
------------------------
Article written by Carrie Bay
http://www.dsnews.com/
Freddie Mac’s latest survey puts the average rate for 30-year fixed-rate mortgages at 4.46 percent (0.8 point) for the week ending December 2. That’s up from last week’s average of 4.40 percent. Last year at this time, 30-year fixed mortgages were averaging 4.71 percent, according to the GSE.
Freddie’s results are based on data gathered from about 125 lenders nationwide, including thrifts, credit unions, commercial banks, and mortgage lending companies. Rates offered for 15-year fixed mortgages averaged 3.81 percent this week (0.7 point), up from 3.77 percent the week before.
Shorter term mortgage rates also rose in Freddie Mac’s survey. The 5-year adjustable-rate mortgage (ARM) averaged 3.49 percent (0.6 point), up from 3.45 percent last week. The 1-year ARM came in at 3.25 percent (0.6 point), up from 3.23 percent.
Nothaft, VP and chief economist for Freddie Mac, explained that mortgage rates followed bond yields higher this week after newly released economic data suggested the economy may be stronger this quarter than in the third quarter.
A separate study released by Bankrate Thursday called the latest move upward by mortgage rates “notable,” as they hit their highest mark in four months in the company’s survey. Bankrate’s figures are derived from data provided by the top 10 banks and thrifts in the top 10 U.S. markets.
The tracking firm reported that the benchmark conforming 30-year fixed mortgage rate rose to 4.71 percent (0.36 point) this week. That’s up pretty significantly from 4.58 percent reported by the company last week.
The average 15-year fixed mortgage increased from 3.97 percent to 4.07 percent (0.35 point) in Bankrate’s study. The larger jumbo 30-year fixed rate jumped as well, settling at 5.29 percent.
Bankrate also documented a rise in adjustable rate mortgages, with the average 5-year ARM climbing to 3.74 percent and the average 7-year ARM jumping to 4.08 percent.
Bankrate says the November unemployment report due out on Friday could be the catalyst for the next move in mortgage rates, with evidence of solid private-sector job growth fuel for higher rates.
The tracking company’s regular weekly forecast for mortgage rate indicates that we’ll likely see another increase subsequently. Sixty-four percent of the mortgage experts surveyed by Bankrate expect mortgage rates to rise again over the next seven days.
------------------------
Article written by Carrie Bay
http://www.dsnews.com/
Friday, November 19, 2010
J.D. POWER AND ASSOCIATES SURVEY SHOWS BORROWER SATISFACTION DECLINING
A study released Thursday by J.D. Power and Associates shows that the time from submission of a mortgage application to approval time has increased by more than a week from the time for approval last year.
In 2009 the average time for approval was 20 days. This year the average is 27.5 days.
In addition to this escalation, the time frame for the entire origination process increased from 46.9 days in 2009 to 52.1 days.
Overall customer satisfaction has decreased five points to 734 from 2009’s level of 739. Satisfaction is measured on a 1,000-point scale.
“While the revised Real Estate Settlement Procedures Act (RESPA) guidelines appear to have streamlined and shortened the time from approval to closing, the unintended consequence is that the application to approval time fame has lengthened and become more complicated,” said David Lo, director of financial services at J.D. Power
He continued, “Ultimately, this longer timeline has a negative impact on overall satisfaction, although there are specific best practices that may mitigate the negative perceptions.”
According to the survey, changes in RESPA resulted in a decrease in the length of time from approval to closing, bringing the average to 24.5 from last year’s 26.9 days.
The 2010 U.S. Primary Mortgage Origination Satisfaction Study is based on responses from more than 3,000 consumers who originated new mortgages. The scale measures satisfaction in four areas of the origination process: application and approval process, loan officer/mortgage brother, closing, and contact.
The Westlake Village, California-based company said the practices most appreciated by customers included providing proactive updates on the status of the loan, providing a welcome acknowledgment after an application is submitted, closing on the promised date, and clearly explaining loan options and ensuring that the customer understands.
Quicken Loans was ranked highest on the satisfaction scale with a score of 826.
Borrowers ranked Bank of America, JP Morgan Chase and Citigroup lowest in the survey, giving them scores of 676, 699 and 691, respectively.
Branch Banking & Trust, last year’s highest ranked company, received a score of 767, a 16 point drop from it score of 783 last year.
-----------------------------------------
Article written by Joy Leopold - DSNews.com
In 2009 the average time for approval was 20 days. This year the average is 27.5 days.
In addition to this escalation, the time frame for the entire origination process increased from 46.9 days in 2009 to 52.1 days.
Overall customer satisfaction has decreased five points to 734 from 2009’s level of 739. Satisfaction is measured on a 1,000-point scale.
“While the revised Real Estate Settlement Procedures Act (RESPA) guidelines appear to have streamlined and shortened the time from approval to closing, the unintended consequence is that the application to approval time fame has lengthened and become more complicated,” said David Lo, director of financial services at J.D. Power
He continued, “Ultimately, this longer timeline has a negative impact on overall satisfaction, although there are specific best practices that may mitigate the negative perceptions.”
According to the survey, changes in RESPA resulted in a decrease in the length of time from approval to closing, bringing the average to 24.5 from last year’s 26.9 days.
The 2010 U.S. Primary Mortgage Origination Satisfaction Study is based on responses from more than 3,000 consumers who originated new mortgages. The scale measures satisfaction in four areas of the origination process: application and approval process, loan officer/mortgage brother, closing, and contact.
The Westlake Village, California-based company said the practices most appreciated by customers included providing proactive updates on the status of the loan, providing a welcome acknowledgment after an application is submitted, closing on the promised date, and clearly explaining loan options and ensuring that the customer understands.
Quicken Loans was ranked highest on the satisfaction scale with a score of 826.
Borrowers ranked Bank of America, JP Morgan Chase and Citigroup lowest in the survey, giving them scores of 676, 699 and 691, respectively.
Branch Banking & Trust, last year’s highest ranked company, received a score of 767, a 16 point drop from it score of 783 last year.
-----------------------------------------
Article written by Joy Leopold - DSNews.com
Friday, October 29, 2010
LONG-TERM MORTGAGE RATES EDGE HIGHER
Mortgage rates are still incredibly low by historical standards. They’ve been fluctuating around record lows not seen in more than a half-century for a good many months now. This week was one where that movement was upward, according to industry data released Thursday.
A nationwide survey conducted by Freddie Mac found that 30-year fixed-rate mortgages averaged 4.23 percent (0.8 point) for the week ending October 28. That’s up from last week’s average of 4.21 percent, and the second consecutive time in the past six weeks 30-year rates have risen.
Rates for 15-year fixed mortgages averaged 3.66 percent (0.7 point) this week in Freddie’s study. Last week, the 15-year rate came in at 3.64 percent.
The GSE reported that rates for adjustable-rate mortgage (ARMs), on the other hand, are heading lower. The 5-year ARM averaged 3.41 percent this week (0.6 point), down from last week when it was 3.45 percent. The 5-year ARM has not been lower since Freddie Mac started tracking it in January 2005.
Frank Nothaft, VP and chief economist at Freddie Mac, says the historically low rates are supporting home sales and reducing the excess stock of homes available for sale.
He notes that existing home sales, including condominiums and co-ops, rose for the second consecutive month in September, up almost 18.0 percent over July’s low.
Similarly, sales of new homes had back-to-back increases and were 7.7 percent above July. Nothaft pointed out that the inventory of new homes for sale has either stayed the same or declined every month of this year.
A separate study released by Bankrate Thursday, which is based on data provided by the top 10 banks and thrifts in the top 10 U.S. markets, also showed that mortgage rates jumped after five weeks of record-low readings and returned to levels last seen one month ago.
The tracking company reported that the average rate on the benchmark conforming 30-year fixed mortgage moved up to 4.51 percent (0.33 point) this week from 4.22 percent last week.
The average 15-year fixed mortgage rate climbed to 3.90 percent (0.33 point) in Bankrate’s survey, up from 3.82 percent the week prior, while the larger jumbo 30-year fixed rate reversed last week’s decline, returning to 5.10 percent.
Bankrate says adjustable-rate mortgages were higher also, with the average 5-year ARM rising to 3.67 percent and the average 7-year ARM rebounding to 3.95 percent.
Bankrate noted in its report that even though the Federal Reserve is poised to announce renewed efforts to boost the economy, it doesn’t automatically mean lower mortgage rates.
“Investors tempering their expectations were behind the increase seen this week and if inflation worries increase once specifics of the Fed’s bond-buying are announced, mortgage rates could continue moving higher. Time will tell just what impact the Fed has on mortgage rates and the overall economy,” Bankrate said.
-------------------------------
Article written by Carrie Bay - http://www.dsnews.com/
A nationwide survey conducted by Freddie Mac found that 30-year fixed-rate mortgages averaged 4.23 percent (0.8 point) for the week ending October 28. That’s up from last week’s average of 4.21 percent, and the second consecutive time in the past six weeks 30-year rates have risen.
Rates for 15-year fixed mortgages averaged 3.66 percent (0.7 point) this week in Freddie’s study. Last week, the 15-year rate came in at 3.64 percent.
The GSE reported that rates for adjustable-rate mortgage (ARMs), on the other hand, are heading lower. The 5-year ARM averaged 3.41 percent this week (0.6 point), down from last week when it was 3.45 percent. The 5-year ARM has not been lower since Freddie Mac started tracking it in January 2005.
Frank Nothaft, VP and chief economist at Freddie Mac, says the historically low rates are supporting home sales and reducing the excess stock of homes available for sale.
He notes that existing home sales, including condominiums and co-ops, rose for the second consecutive month in September, up almost 18.0 percent over July’s low.
Similarly, sales of new homes had back-to-back increases and were 7.7 percent above July. Nothaft pointed out that the inventory of new homes for sale has either stayed the same or declined every month of this year.
A separate study released by Bankrate Thursday, which is based on data provided by the top 10 banks and thrifts in the top 10 U.S. markets, also showed that mortgage rates jumped after five weeks of record-low readings and returned to levels last seen one month ago.
The tracking company reported that the average rate on the benchmark conforming 30-year fixed mortgage moved up to 4.51 percent (0.33 point) this week from 4.22 percent last week.
The average 15-year fixed mortgage rate climbed to 3.90 percent (0.33 point) in Bankrate’s survey, up from 3.82 percent the week prior, while the larger jumbo 30-year fixed rate reversed last week’s decline, returning to 5.10 percent.
Bankrate says adjustable-rate mortgages were higher also, with the average 5-year ARM rising to 3.67 percent and the average 7-year ARM rebounding to 3.95 percent.
Bankrate noted in its report that even though the Federal Reserve is poised to announce renewed efforts to boost the economy, it doesn’t automatically mean lower mortgage rates.
“Investors tempering their expectations were behind the increase seen this week and if inflation worries increase once specifics of the Fed’s bond-buying are announced, mortgage rates could continue moving higher. Time will tell just what impact the Fed has on mortgage rates and the overall economy,” Bankrate said.
-------------------------------
Article written by Carrie Bay - http://www.dsnews.com/
Thursday, October 21, 2010
KINDERHOOK BANK CORP. TO ACQUIRE VALLEY MORTGAGE
Robert A. Sherwood, President and CEO of Kinderhook Bank Corp. (the “Company”) announced today that the Company has executed a letter of intent to acquire Valley Mortgage Company, Inc., (“Valley Mortgage”) a New York State registered mortgage brokerage firm headquartered in Hudson, New York.
Seth Rapport, President of Valley Mortgage, will continue as President of the company which works with local, regional and national lenders to offer a full range of mortgage products. Founded by Mr. Rapport in 1996, Valley Mortgage Company arranges financing for real estate located throughout New York State. The acquisition is subject to the parties
entering into a definitive purchase agreement, obtaining all regulatory approvals, and other terms and conditions. It is anticipated that the acquisition transaction will be completed in the first quarter of 2011.
“Valley Mortgage Company has grown today to become one of the most respected mortgage companies serving the Hudson Valley and Metropolitan New York areas,” stated Mr. Sherwood. “We are pleased to have Valley Mortgage become part of our company because like Kinderhook Bank, Seth is well known for his emphasis on exceptional customer service and high ethical standards,” Mr. Sherwood added.
Mr. Rapport stated, “Becoming part of Kinderhook Bank Corp. is very exciting for us as I believe this affiliation will favorably impact current and future customers as well as to expand our services and generate growth. I look forward to continuing to serve as President of Valley Mortgage Company well into the future.” Valley Mortgage Company will continue its brokerage operations and expand Kinderhook Bank’s product offering to include programs through Fannie Mae, Freddie Mac, FHA, VA and Rural Housing Services.
Kinderhook Bank Corp. is the parent company of The National Union Bank of Kinderhook, with five branch locations in Columbia and Rensselaer counties, New York and Kleeber Insurance Services, with locations in Valatie and East Greenbush, New York. Kinderhook
Seth Rapport, President of Valley Mortgage, will continue as President of the company which works with local, regional and national lenders to offer a full range of mortgage products. Founded by Mr. Rapport in 1996, Valley Mortgage Company arranges financing for real estate located throughout New York State. The acquisition is subject to the parties
entering into a definitive purchase agreement, obtaining all regulatory approvals, and other terms and conditions. It is anticipated that the acquisition transaction will be completed in the first quarter of 2011.
“Valley Mortgage Company has grown today to become one of the most respected mortgage companies serving the Hudson Valley and Metropolitan New York areas,” stated Mr. Sherwood. “We are pleased to have Valley Mortgage become part of our company because like Kinderhook Bank, Seth is well known for his emphasis on exceptional customer service and high ethical standards,” Mr. Sherwood added.
Mr. Rapport stated, “Becoming part of Kinderhook Bank Corp. is very exciting for us as I believe this affiliation will favorably impact current and future customers as well as to expand our services and generate growth. I look forward to continuing to serve as President of Valley Mortgage Company well into the future.” Valley Mortgage Company will continue its brokerage operations and expand Kinderhook Bank’s product offering to include programs through Fannie Mae, Freddie Mac, FHA, VA and Rural Housing Services.
Kinderhook Bank Corp. is the parent company of The National Union Bank of Kinderhook, with five branch locations in Columbia and Rensselaer counties, New York and Kleeber Insurance Services, with locations in Valatie and East Greenbush, New York. Kinderhook
Wednesday, October 13, 2010
ECONOMISTS SAY HOME PRICES HAVE ALREADY HIT BOTTOM
Home prices in the United States found their floor during the early part of 2010 and are expected to begin trending upward next year, according to a panel of elite economists surveyed by the National Association for Business Economics (NABE) for its October 2010 Outlook.
“The housing recovery is intact, but tepid overall. Home prices have hit bottom,” NABE stated in its report outlining the survey results.
The panel anticipated a 1.5 percent drop in residential home values this year, and that decline has already been registered through the first half of 2010, NABE explained.
The group of economists is projecting gains in home prices of 1.2 percent over the course of 2011, but they warn that the modest increase will not keep up with the broader measures of inflation.
NABE panelists expect any evidence of price weakness post-tax incentive to be temporary. Their assessments of the importance of the government’s recent stimulus measures in the form of tax breaks for homebuyers vary widely. Nearly one-third feel that a persistent relapse will follow the incentives’ expiration, while the remaining two-thirds believe an underlying recovery is in place.
When it comes to the distressed side of the business, it’s become clear that the nation’s high level of unemployment is now one of the primary triggers of default among struggling homeowners. Getting more people back to work is key to a recovery in housing and getting a handle on still-rising delinquency numbers. But NABE’s panel warns that labor market conditions will be slow to improve.
The economists are forecasting monthly payroll gains to average 150,000 or less until the latter half of 2011, at which time gains will improve to a range of 170,000 to 175,000. The unemployment rate is expected to persist at over 9.5 percent through midyear 2011, before easing only slightly to 9.2 percent by the end of next year.
“This will mark the worst post-recession job recovery on record,” NABE said.
NABE panelists trimmed their projections on overall economic growth. Those projections now remain sub-par through year-end, the organization explained.
“This summer’s slowdown has exposed the economy’s sensitivity to wealth losses, the unwinding of debt, and the reductions in economic stimulus,” said Richard Wobbekind, NABE president-elect and associate dean of the Leeds School of Business at the University of Colorado-Boulder. “Confidence in the expansion’s durability is intact, but recent economic weakness has prompted many panelists to scale back expectations for the year ahead.”
The October 2010 NABE Outlook presents the consensus of macroeconomic forecasts from a panel of 46 professional analysts. The group included economists from such firms as Moody’s Analytics, the PMI Group, Fannie Mae, and Goldman Sachs.
©2010 DS News. All Rights Reserved.
-----------------------------
Article written by Carrie Bay - http://www.dsnews.com/
“The housing recovery is intact, but tepid overall. Home prices have hit bottom,” NABE stated in its report outlining the survey results.
The panel anticipated a 1.5 percent drop in residential home values this year, and that decline has already been registered through the first half of 2010, NABE explained.
The group of economists is projecting gains in home prices of 1.2 percent over the course of 2011, but they warn that the modest increase will not keep up with the broader measures of inflation.
NABE panelists expect any evidence of price weakness post-tax incentive to be temporary. Their assessments of the importance of the government’s recent stimulus measures in the form of tax breaks for homebuyers vary widely. Nearly one-third feel that a persistent relapse will follow the incentives’ expiration, while the remaining two-thirds believe an underlying recovery is in place.
When it comes to the distressed side of the business, it’s become clear that the nation’s high level of unemployment is now one of the primary triggers of default among struggling homeowners. Getting more people back to work is key to a recovery in housing and getting a handle on still-rising delinquency numbers. But NABE’s panel warns that labor market conditions will be slow to improve.
The economists are forecasting monthly payroll gains to average 150,000 or less until the latter half of 2011, at which time gains will improve to a range of 170,000 to 175,000. The unemployment rate is expected to persist at over 9.5 percent through midyear 2011, before easing only slightly to 9.2 percent by the end of next year.
“This will mark the worst post-recession job recovery on record,” NABE said.
NABE panelists trimmed their projections on overall economic growth. Those projections now remain sub-par through year-end, the organization explained.
“This summer’s slowdown has exposed the economy’s sensitivity to wealth losses, the unwinding of debt, and the reductions in economic stimulus,” said Richard Wobbekind, NABE president-elect and associate dean of the Leeds School of Business at the University of Colorado-Boulder. “Confidence in the expansion’s durability is intact, but recent economic weakness has prompted many panelists to scale back expectations for the year ahead.”
The October 2010 NABE Outlook presents the consensus of macroeconomic forecasts from a panel of 46 professional analysts. The group included economists from such firms as Moody’s Analytics, the PMI Group, Fannie Mae, and Goldman Sachs.
©2010 DS News. All Rights Reserved.
-----------------------------
Article written by Carrie Bay - http://www.dsnews.com/
Friday, October 1, 2010
MORTGAGE RATES FALL TO NEW LOWS......AGAIN!
How low can we go? When it comes to mortgage rates, the floor keeps dropping. Industry reports released Thursday show that interest rates for home loans – already at their lowest marks in more than a half-century – dropped again this week.
Market analysis conducted by Freddie Mac found that the 30-year fixed-rate mortgage (FRM) averaged 4.32 percent (0.8 point) for the week ending September 30, 2010. That’s down from 4.37 percent last week and tied with the all-time low in Freddie’s survey set four weeks ago.
The GSE reported that the 15-year FRM this week averaged a new record low of 3.75 percent (0.7 point). Last week, it came in at 3.82 percent.
The 5-year adjustable-rate mortgage (ARM) dropped to an average of 3.52 percent this week (0.6 point), according to Freddie Mac, also setting a new record low. The 1-year ARM rose slightly to 3.48 percent (0.7 point).
“Confidence in the state of the economy fell among consumers and businesses, which led to a decline in long-term bond yields and brought many mortgage rates to record lows this week,” said Frank Nothaft, Freddie Mac’s VP and chief economist.
Weakening confidence in the economy’s trajectory was evident despite notable improvements in household balance sheets. Nothaft cited a Federal Reserve report, which shows that homeowners have regained $1.0 trillion in home equity as of the second quarter of 2010, after losing more than $7.5 trillion over the three-year period ending in the first quarter of 2009.
A separate weekly study by Bankrate also put mortgage interest rates at record-lows. Bankrates survey is based on data gathered from the top 10 banks and thrifts in the top 10 U.S. markets.
The tracking company reported that rates for conforming 30-year fixed mortgages remained unchanged this week at their 4.5 percent low (0.36 point).
The average 15-year fixed mortgage retreated to 3.94 percent (0.31 point), down from 3.96 percent last week, while the larger jumbo 30-year fixed rate inched lower to 5.16 percent.
Bankrate says adjustable rate mortgages hit new lows also, with the average 5-year ARM decreasing to 3.68 percent and the average 7-year ARM falling to 3.91 percent.
According to Bankrate, mortgage rates remain at record lows, not as a result of poor economic data, but rather in expectation of additional efforts by the Federal Reserve to revive the economy.
“Specifically, investors are counting on the Fed to resume quantitative easing – purchases of government bonds in an effort to drive market interest rates even lower,” the company said in its report. “Investors have been front-running the Fed by buying government debt now, bringing bond yields to ultra-low levels. Mortgage bond investors are pricing for the risk that loans could be refinanced if the Fed’s efforts reduce mortgage rates further.”
-------------------
Article writen by Carrie Bay - DSNews.com
Market analysis conducted by Freddie Mac found that the 30-year fixed-rate mortgage (FRM) averaged 4.32 percent (0.8 point) for the week ending September 30, 2010. That’s down from 4.37 percent last week and tied with the all-time low in Freddie’s survey set four weeks ago.
The GSE reported that the 15-year FRM this week averaged a new record low of 3.75 percent (0.7 point). Last week, it came in at 3.82 percent.
The 5-year adjustable-rate mortgage (ARM) dropped to an average of 3.52 percent this week (0.6 point), according to Freddie Mac, also setting a new record low. The 1-year ARM rose slightly to 3.48 percent (0.7 point).
“Confidence in the state of the economy fell among consumers and businesses, which led to a decline in long-term bond yields and brought many mortgage rates to record lows this week,” said Frank Nothaft, Freddie Mac’s VP and chief economist.
Weakening confidence in the economy’s trajectory was evident despite notable improvements in household balance sheets. Nothaft cited a Federal Reserve report, which shows that homeowners have regained $1.0 trillion in home equity as of the second quarter of 2010, after losing more than $7.5 trillion over the three-year period ending in the first quarter of 2009.
A separate weekly study by Bankrate also put mortgage interest rates at record-lows. Bankrates survey is based on data gathered from the top 10 banks and thrifts in the top 10 U.S. markets.
The tracking company reported that rates for conforming 30-year fixed mortgages remained unchanged this week at their 4.5 percent low (0.36 point).
The average 15-year fixed mortgage retreated to 3.94 percent (0.31 point), down from 3.96 percent last week, while the larger jumbo 30-year fixed rate inched lower to 5.16 percent.
Bankrate says adjustable rate mortgages hit new lows also, with the average 5-year ARM decreasing to 3.68 percent and the average 7-year ARM falling to 3.91 percent.
According to Bankrate, mortgage rates remain at record lows, not as a result of poor economic data, but rather in expectation of additional efforts by the Federal Reserve to revive the economy.
“Specifically, investors are counting on the Fed to resume quantitative easing – purchases of government bonds in an effort to drive market interest rates even lower,” the company said in its report. “Investors have been front-running the Fed by buying government debt now, bringing bond yields to ultra-low levels. Mortgage bond investors are pricing for the risk that loans could be refinanced if the Fed’s efforts reduce mortgage rates further.”
-------------------
Article writen by Carrie Bay - DSNews.com
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