October 29, 2010
Mortgage Rates Up But Still Incredibly Low from Realty Times
McLean, VA – Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey (PMMS), which found that the 30-year fixed-rate mortgage rate rose slightly for the second consecutive time in six weeks. The 15-year fixed-rate mortgage rate also rose slightly while the 5-year ARM set another low, and the 1-year ARM tied last week's low.
30-year fixed-rate mortgage (FRM) averaged 4.23 percent with an average 0.8 point for the week ending October 28, 2010, up from last week when it averaged 4.21 percent. Last year at this time, the 30-year FRM averaged 5.03 percent.
15-year FRM this week averaged 3.66 percent with an average 0.7 point, up from last week when it averaged 3.64 percent. A year ago at this time, the 15-year FRM averaged 4.46 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.41 percent this week, with an average 0.6 point, down from last week when it averaged 3.45 percent. A year ago, the 5-year ARM averaged 4.42 percent. The 5-year ARM has not been lower since Freddie Mac started tracking it in January 2005.
1-year Treasury-indexed ARM averaged 3.30 percent this week with an average 0.7 point, unchanged from last week. At this time last year, the 1-year ARM averaged 4.57 percent . The 1-year ARM ties last week's low.
Frank Nothaft, vice president and chief economist at Freddie Mac, reports, "Mixed economic data releases left mortgage rates little changed this week. Consumer confidence increased slightly in October, according to The Conference Board , but still remains at low levels. Based on the S&P/Case-Shiller 20-city composite index, house prices fell 0.3 percent between July and August, while the purchase-only index by the Federal Housing Finance Agency showed a 0.4 percent gain over the same period."
"Historically low rates are supporting home sales and reducing the excess stock of homes available for sale. 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. The inventory of new homes for sale has either stayed the same or declined every month of this year."
Copyright © 2010 Realty Times. All Rights Reserved.
Friday, October 29, 2010
Saturday, October 23, 2010
Bank of America Plans to Resume Foreclosures
WASHINGTON (AP) -- The pace of U.S. home foreclosures may not slow much after all.
Bank of America said Monday that it plans to resume seizing more than 100,000 homes in 23 states next week. It said it has a legal right to foreclose despite accusations that documents used in the process were flawed.
Ally Financial Inc's GMAC Mortgage unit is also resuming foreclosures once documents are fixed. Gina Proia, a spokeswoman for Ally, said that "as we review the affected files and take any remediation needed, the foreclosure process then resumes."
Analysts expect other lenders to correct problems with the way they handled documents and proceed with a wave of foreclosures that have depressed the housing market. They are likely to follow because foreclosure practices were similar from bank to bank, said banking analyst Nancy Bush of NAB Research.
"We'll be back to square one by the end of the year," she said.
Copyright by Associated Press
Bank of America said Monday that it plans to resume seizing more than 100,000 homes in 23 states next week. It said it has a legal right to foreclose despite accusations that documents used in the process were flawed.
Ally Financial Inc's GMAC Mortgage unit is also resuming foreclosures once documents are fixed. Gina Proia, a spokeswoman for Ally, said that "as we review the affected files and take any remediation needed, the foreclosure process then resumes."
Analysts expect other lenders to correct problems with the way they handled documents and proceed with a wave of foreclosures that have depressed the housing market. They are likely to follow because foreclosure practices were similar from bank to bank, said banking analyst Nancy Bush of NAB Research.
"We'll be back to square one by the end of the year," she said.
Copyright by Associated Press
Monday, October 18, 2010
Bank of America Halts Foreclosures
October 18, 2010
Realty Times - Real Estate Outlook: Bank of America Halts Foreclosures by Carla Hill
It's announcement has been received with mixed reviews. Many homeowners on the brink of foreclosure are breathing a temporary sigh of relief, as Bank of America announced it would become the first major bank to halt both foreclosure proceedings and sales. This will take effect in each of the 50 U.S. states.
The decision comes on the heels of mounting political pressure, namely that from Senator Christopher Dodd, chairman of the Senate Banking Committee, and the impending November 16th hearing on foreclosures.
The temporary cessation of foreclosure proceedings will give Bank of America time, in the wake of the mortgage crisis, to review its own methods, to ensure fairness and that no predatory practices are in place.
Zillow.com is reporting that the foreclosure rate climbed again in August and became an even larger portion of monthly transactions. Foreclosure resales as a percentage of all sales in August were 19%, up 2 percent from July.
In an housing market that is already anemic, however, will this halt bring more paperwork, pressure, and slowed sales?
Vicki Cox Golder, NAR President, notes, "There are valid foreclosures that should move ahead quickly, and we shouldn't lump them in with mortgages that are suspect. That would cause deep problems in an already fragile market and throw many families into uncertainty."
The National Association of Realtors also reports that "thousands of first-time and move-up buyers who hoped to make a foreclosed property their new home now face uncertainty, anxiety and possibly remorse as they worry that closing on their desired property could be in jeopardy."
This temporary halt could also put more pressure on an ailing job market. Remodelers, contractors, and other workers employed to rehab newly purchased foreclosures may now find themselves without work.
Last week it was reported that U.S. Payrolls had already dropped 95,000 in September.
Will the Fed take action under this mounting pressure when it meets up on November 2nd and 3rd? Time will tell and we'll keep you posted of any changes that may coming your way.
For now, the market remains mostly unchanged. According to the NAHB/Wells Fargo Housing Market Index, results remain "dismal." They report that new job formations slowed in the second and third quarters and both businesses and consumers pulled back on purchases. Overall uncertainty over economic growth has become the latest impediment to a resurgence in new housing -- even with historically low interest rates, leveling house prices and pent-up demand from unformed households.
Zillow predicts that a bottom in national home values will happen later this year or early next year at the latest.
It looks like for now, the housing market will continue on its weakened path.
Copyright © 2010 Realty Times. All Rights Reserved.
Realty Times - Real Estate Outlook: Bank of America Halts Foreclosures by Carla Hill
It's announcement has been received with mixed reviews. Many homeowners on the brink of foreclosure are breathing a temporary sigh of relief, as Bank of America announced it would become the first major bank to halt both foreclosure proceedings and sales. This will take effect in each of the 50 U.S. states.
The decision comes on the heels of mounting political pressure, namely that from Senator Christopher Dodd, chairman of the Senate Banking Committee, and the impending November 16th hearing on foreclosures.
The temporary cessation of foreclosure proceedings will give Bank of America time, in the wake of the mortgage crisis, to review its own methods, to ensure fairness and that no predatory practices are in place.
Zillow.com is reporting that the foreclosure rate climbed again in August and became an even larger portion of monthly transactions. Foreclosure resales as a percentage of all sales in August were 19%, up 2 percent from July.
In an housing market that is already anemic, however, will this halt bring more paperwork, pressure, and slowed sales?
Vicki Cox Golder, NAR President, notes, "There are valid foreclosures that should move ahead quickly, and we shouldn't lump them in with mortgages that are suspect. That would cause deep problems in an already fragile market and throw many families into uncertainty."
The National Association of Realtors also reports that "thousands of first-time and move-up buyers who hoped to make a foreclosed property their new home now face uncertainty, anxiety and possibly remorse as they worry that closing on their desired property could be in jeopardy."
This temporary halt could also put more pressure on an ailing job market. Remodelers, contractors, and other workers employed to rehab newly purchased foreclosures may now find themselves without work.
Last week it was reported that U.S. Payrolls had already dropped 95,000 in September.
Will the Fed take action under this mounting pressure when it meets up on November 2nd and 3rd? Time will tell and we'll keep you posted of any changes that may coming your way.
For now, the market remains mostly unchanged. According to the NAHB/Wells Fargo Housing Market Index, results remain "dismal." They report that new job formations slowed in the second and third quarters and both businesses and consumers pulled back on purchases. Overall uncertainty over economic growth has become the latest impediment to a resurgence in new housing -- even with historically low interest rates, leveling house prices and pent-up demand from unformed households.
Zillow predicts that a bottom in national home values will happen later this year or early next year at the latest.
It looks like for now, the housing market will continue on its weakened path.
Copyright © 2010 Realty Times. All Rights Reserved.
Friday, October 8, 2010
Mortgage Rates Continue to Fall
Realty Times of October 8, 2010
Mortgage Rates Continue to Fall According to Freddie Mac's Weekly Survey
McLean, VA – Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), which found that the 30-year fixed-rate mortgage rate dropped yet again to break the survey's all-time low; the 15-year fixed-rate did the same. The 5-year ARM also set an all-time survey low.
30-year fixed-rate mortgage (FRM) averaged 4.27 percent with an average 0.8 point for the week ending October 7, 2010, down from last week when it averaged 4.32 percent. Last year at this time, the 30-year FRM averaged 4.87 percent.
15-year FRM this week averaged a record low of 3.72 percent with an average 0.7 point, down from last week when it averaged 3.75 percent. A year ago at this time, the 15-year FRM averaged 4.33 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.47 percent this week, with an average 0.6 point, down from last week when it averaged 3.52 percent. A year ago, the 5-year ARM averaged 4.35 percent.
1-year Treasury-indexed ARM averaged 3.40 percent this week with an average 0.7 point, down from last week when it averaged 3.48 percent. At this time last year, the 1-year ARM averaged 4.53 percent.
Frank Nothaft, vice president and chief economist at Freddie Mac report, "The 12-month growth rate in the core price index for personal consumption , which the Federal Reserve closely tracks, has been drifting lower over the past six months ending in August and suggests inflation is running at a tepid pace at best. This allowed mortgage rates to ease to new or near record lows this week."
"Housing affordability increased for the second month in a row in August to tie April's level, according to the National Association of Realtors® (NAR). As a result, pending existing home sales also rose for the second consecutive month in August to the strongest pace in four months, the NAR also reported. Furthermore, since the end of August, mortgage applications for home purchases were up over 14 percent for the week ended October 1st."
Copyright © 2010 Realty Times. All Rights Reserved.
Mortgage Rates Continue to Fall According to Freddie Mac's Weekly Survey
McLean, VA – Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), which found that the 30-year fixed-rate mortgage rate dropped yet again to break the survey's all-time low; the 15-year fixed-rate did the same. The 5-year ARM also set an all-time survey low.
30-year fixed-rate mortgage (FRM) averaged 4.27 percent with an average 0.8 point for the week ending October 7, 2010, down from last week when it averaged 4.32 percent. Last year at this time, the 30-year FRM averaged 4.87 percent.
15-year FRM this week averaged a record low of 3.72 percent with an average 0.7 point, down from last week when it averaged 3.75 percent. A year ago at this time, the 15-year FRM averaged 4.33 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.47 percent this week, with an average 0.6 point, down from last week when it averaged 3.52 percent. A year ago, the 5-year ARM averaged 4.35 percent.
1-year Treasury-indexed ARM averaged 3.40 percent this week with an average 0.7 point, down from last week when it averaged 3.48 percent. At this time last year, the 1-year ARM averaged 4.53 percent.
Frank Nothaft, vice president and chief economist at Freddie Mac report, "The 12-month growth rate in the core price index for personal consumption , which the Federal Reserve closely tracks, has been drifting lower over the past six months ending in August and suggests inflation is running at a tepid pace at best. This allowed mortgage rates to ease to new or near record lows this week."
"Housing affordability increased for the second month in a row in August to tie April's level, according to the National Association of Realtors® (NAR). As a result, pending existing home sales also rose for the second consecutive month in August to the strongest pace in four months, the NAR also reported. Furthermore, since the end of August, mortgage applications for home purchases were up over 14 percent for the week ended October 1st."
Copyright © 2010 Realty Times. All Rights Reserved.
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