March 31, 2011 from Realty Times
Spring Market Conditions Bode Well For Discounted Home Prices by Broderick Perkins
Optimism about the housing market isn't quite sweeping the nation, but Americans remain sold on the value of home ownership at a good time to be bullish about buying a home.
With home sales and prices still falling, the spring could shape up as an opportune time to make a deal.
The housing downturn hasn't shaken consumers' resolve to consider home ownership an integral part of an American Dream, even among home owners with homes that have lost value.
The eighth quarterly "Allstate-National Journal Heartland Monitor Poll: The American Dream" revealed that nearly nine out of 10 homeowners say they would buy their same homes again.
Among those with homes with lost value, the same percentage said they would buy their home again.
Also, seven of 10 Americans say they would advise a friend or family member to buy a home as a long-term asset.
The spring could be a good time to take that advice.
Existing-home sales, completed transactions that include single-family, townhomes, condominiums and co-ops, dropped 9.6 percent to a seasonally adjusted annual rate of 4.88 million in February from 5.40 million in January. February 2010 sales were 2.8 percent below the pace in February 2010, according to the National Association of Realtors (NAR).
The slow sales pushed the median price down to $156,100, the lowest level since February 2002, setting the stage for spring bargains.
Some experts say the housing market is years away from a full blown recovery and the home buyer tax credit is kaput. However, improvements in employment and manufacturing and other economic sectors, bargain home prices and affordable interest rates could light a fire under buyers who've been sitting on the fence.
"Housing affordability conditions have been at record levels and the economy has been improving, but home sales are being constrained by the twin problems of unnecessarily tight credit, and a measurable level of contract cancellations from some appraisals not supporting prices negotiated between buyers and sellers," said Lawrence Yun NAR chief economist.
The Allstate survey of 1,000 Americans also found.
• Buying a home was the best investment among 24 percent, behind "investing in retirement savings" (38 percent), but ahead of "saving money in the bank" (20 percent), and "investing in the stock market" (6 percent).
• A majority, 58 percent of those who believe the housing crisis will remain a serious problem would still recommend buying a home.
• Americans are evenly split on whether the federal government should continue policies to encourage home ownership at the same level (46 percent) or scale them back because they cost too much (46 percent).
• More than half of Americans (52 percent) blame the housing crisis on banks and lending institutions for misleading borrowers and approving bad loans, while 32 percent blame people who bought homes and took out mortgages they couldn't afford, and only 12 percent blame government policies that encouraged too many people to try to own their own homes.
"Owning a home continues to be the bedrock of the American Dream – even as incomes are down, jobs are scarce and families struggle to make ends meet," said Thomas J. Wilson , Allstate chairman, president and chief executive officer.
"Homeownership is viewed positively by the vast majority of Americans as both a place to raise a family and a sound investment," he added.
Copyright © 2011 Realty Times. All Rights Reserved.
Thursday, March 31, 2011
Sunday, March 20, 2011
Fixed-Rate Mortgage Drops
March 18, 2011 from Realty Times
30-Year Fixed-Rate Mortgage Drops Amid Japan Crisis
McLean, VA – Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey (PMMS), which shows the 30-year fixed-rate dropping to 4.76 percent while the 15-year fixed-rate hit its lowest rate at 3.97 percent since December 2010.
30-year fixed-rate mortgage (FRM) averaged 4.76 percent with an average 0.7 point for the week ending March 17, 2011, down from last week when it averaged 4.88 percent. Last year at this time, the 30-year FRM averaged 4.96 percent.
15-year FRM this week averaged 3.97 percent with an average 0.7 point, down from last week when it averaged 4.15 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 3.57 percent this week, with an average 0.6 point, down from last week when it averaged 3.73 percent. A year ago, the 5-year ARM averaged 4.09 percent.
1-year Treasury-indexed ARM averaged 3.17 percent this week with an average 0.6 point, down from last week when it averaged 3.21 percent. At this time last year, the 1-year ARM averaged 4.12 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac, reports, "With the crisis in Japan, investors rushed to buy the security of U.S. Treasury bonds , which lowered its yields and other interest rates as well. This allowed fixed mortgage rates to drift lower this week."
"In aggregate, families have been strengthening their balance sheets. In the fourth quarter of 2010, household net worth rose by $2.1 trillion, boosted by gains in the stock market. This helped lower their financial obligation ratio (debt payments relative to disposable income) to the lowest level since the first quarter of 1995."
Copyright © 2011 Realty Times. All Rights Reserved.
30-Year Fixed-Rate Mortgage Drops Amid Japan Crisis
McLean, VA – Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey (PMMS), which shows the 30-year fixed-rate dropping to 4.76 percent while the 15-year fixed-rate hit its lowest rate at 3.97 percent since December 2010.
30-year fixed-rate mortgage (FRM) averaged 4.76 percent with an average 0.7 point for the week ending March 17, 2011, down from last week when it averaged 4.88 percent. Last year at this time, the 30-year FRM averaged 4.96 percent.
15-year FRM this week averaged 3.97 percent with an average 0.7 point, down from last week when it averaged 4.15 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 3.57 percent this week, with an average 0.6 point, down from last week when it averaged 3.73 percent. A year ago, the 5-year ARM averaged 4.09 percent.
1-year Treasury-indexed ARM averaged 3.17 percent this week with an average 0.6 point, down from last week when it averaged 3.21 percent. At this time last year, the 1-year ARM averaged 4.12 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac, reports, "With the crisis in Japan, investors rushed to buy the security of U.S. Treasury bonds , which lowered its yields and other interest rates as well. This allowed fixed mortgage rates to drift lower this week."
"In aggregate, families have been strengthening their balance sheets. In the fourth quarter of 2010, household net worth rose by $2.1 trillion, boosted by gains in the stock market. This helped lower their financial obligation ratio (debt payments relative to disposable income) to the lowest level since the first quarter of 1995."
Copyright © 2011 Realty Times. All Rights Reserved.
Wednesday, March 16, 2011
Mortgage Rates Continue Downward Trend
March 16, 2011 from Realty Times
Mortgage Rates Continue Downward Trend by Ed Ferrara
After seeing no movement for most of last week, mortgage rates declined today continuing a three week downward trend. Freerateupdate.com's daily survey of wholesale and direct lenders show that conforming mortgage rates all declined by .125%. Conforming 30 year fixed rate mortgages are at 4.625%, 15 year fixed rate mortgages are at 3.750% and 5/1 adjustable mortgage rates are at 3.000%. These are the best conforming mortgage rates available with 0.7 to 1% to borrowers with good credit and the ability to meet lender approval. The most popular of these are the fixed rate mortgage loans which offer borrowers the security of monthly mortgage payments that remain the same throughout the life of the loan.
FHA mortgage rates had mixed results this week. FHA 30 year fixed mortgage rates saw a decrease of .125% and are at 4.375%, FHA 15 year fixed mortgage rates remain unchanged and are at 4.000% and FHA 5/1 adjustable rate mortgages are at 3.750% which is an increase of .250%. FHA mortgage loans continue to be popular with borrowers, especially first time home buyers due to FHA low down payment requirements and easier credit qualifying guidelines. On the other hand, borrowers must pay higher FHA closing costs (APR) because FHA charges various fees and an upfront mortgage insurance premium.
Jumbo mortgage rates saw the same downward slide as conforming mortgage rates. Jumbo 30 year fixed mortgage rates are at 5.250% which is a decrease of .125%. Jumbo 15 year fixed mortgage rates are at 5.000% and Jumbo 5/1 adjustable mortgage rates are at 3.625%, both down .250%. These low jumbo mortgage rates are available to well qualified borrowers with 0.7 to 1% origination fee. Jumbo mortgage loans are necessary for mortgage financing above the conforming loan limit which is $417,000 to $729,250 depending on the location of the property.
Mortgage rates move up and down and in the opposite direction of MBS prices (mortgage backed securities). This past week, economic data released included the increase in unemployment claims, the rise of wholesale inventories and sales and the increase in retail trade sales. While responding lightly to these reports, the most movement for MBS prices came from the continued unrest in the Middle East. In addition, the recent earthquake and tsunami in Japan has investors concerned about the economic recovery on a worldwide scale which has had the strongest affect on MBS prices that ultimately resulted in the reduction of almost all mortgage rates.
FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders' rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1 point origination.
Copyright © 2011 Realty Times. All Rights Reserved.
Mortgage Rates Continue Downward Trend by Ed Ferrara
After seeing no movement for most of last week, mortgage rates declined today continuing a three week downward trend. Freerateupdate.com's daily survey of wholesale and direct lenders show that conforming mortgage rates all declined by .125%. Conforming 30 year fixed rate mortgages are at 4.625%, 15 year fixed rate mortgages are at 3.750% and 5/1 adjustable mortgage rates are at 3.000%. These are the best conforming mortgage rates available with 0.7 to 1% to borrowers with good credit and the ability to meet lender approval. The most popular of these are the fixed rate mortgage loans which offer borrowers the security of monthly mortgage payments that remain the same throughout the life of the loan.
FHA mortgage rates had mixed results this week. FHA 30 year fixed mortgage rates saw a decrease of .125% and are at 4.375%, FHA 15 year fixed mortgage rates remain unchanged and are at 4.000% and FHA 5/1 adjustable rate mortgages are at 3.750% which is an increase of .250%. FHA mortgage loans continue to be popular with borrowers, especially first time home buyers due to FHA low down payment requirements and easier credit qualifying guidelines. On the other hand, borrowers must pay higher FHA closing costs (APR) because FHA charges various fees and an upfront mortgage insurance premium.
Jumbo mortgage rates saw the same downward slide as conforming mortgage rates. Jumbo 30 year fixed mortgage rates are at 5.250% which is a decrease of .125%. Jumbo 15 year fixed mortgage rates are at 5.000% and Jumbo 5/1 adjustable mortgage rates are at 3.625%, both down .250%. These low jumbo mortgage rates are available to well qualified borrowers with 0.7 to 1% origination fee. Jumbo mortgage loans are necessary for mortgage financing above the conforming loan limit which is $417,000 to $729,250 depending on the location of the property.
Mortgage rates move up and down and in the opposite direction of MBS prices (mortgage backed securities). This past week, economic data released included the increase in unemployment claims, the rise of wholesale inventories and sales and the increase in retail trade sales. While responding lightly to these reports, the most movement for MBS prices came from the continued unrest in the Middle East. In addition, the recent earthquake and tsunami in Japan has investors concerned about the economic recovery on a worldwide scale which has had the strongest affect on MBS prices that ultimately resulted in the reduction of almost all mortgage rates.
FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders' rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1 point origination.
Copyright © 2011 Realty Times. All Rights Reserved.
Wednesday, March 9, 2011
Mortgage Rates ...Show Improvement
March 9, 2011 from Realty Times
Mortgage Rates Today: Home Mortgage Rates Continue to Show Improvement by Ed Ferrara
Over the past week, mortgage rates continued to show improvement with a decrease of .125% for conforming 15 year fixed mortgage rates and 5/1 ARM loan rates. Freerateupdate.com's daily survey of wholesale and direct lenders show that 30 year fixed mortgage rates are at 4.750%, 15 year fixed mortgage rates are at 3.875% and 5/1 adjustable mortgage rates are at 3.125%. Conforming fixed rate mortgage loans continue to be popular with borrowers who want the security of a set monthly mortgage payment for the life of loan and are available with 0.7 to 1% origination fee to those with good credit.
Remaining unchanged, FHA 30 year fixed mortgage rates are at 4.500% and FHA 15 year fixed mortgage rates are at 4.000%. FHA 5/1 ARM loan rates are at 3.500% which is a decrease of .125%. FHA fixed mortgage rates continue to be competitive with conforming fixed mortgage rates, although FHA mortgage loans offer several benefits to borrowers including a low down payment requirement and easier credit qualifying. Borrowers must pay higher FHA closing costs (APR) because FHA charges an upfront mortgage insurance premium and other various fees. Jumbo mortgage rates saw no changes over the past week.
Jumbo 30 year fixed mortgage rates are at 5.375%, jumbo 15 year fixed mortgage rates are at 5.250% and jumbo 5/1 ARM loan rates are at 3.875%. Jumbo mortgage loans are required for mortgage financing above the conforming loan limit which is $417,000 to $729,250 depending on the property location. Available with 0.7 to 1% origination point, these are the best jumbo mortgage rates offered to well qualified borrowers.
MBS prices (mortgage backed prices) affect mortgage rates which move in the opposite direction. MBS price movements continue to be unpredictable and not necessarily dependent on the economic data reported. This past week's reports included an increase in private sector jobs, a decrease in weekly jobless claims and a lower unemployment rate. Although mortgage rates are down, MBA reported weekly purchase and refinance activity down. Regardless of economic reports released, the tensions in the Middle East continue to be driving the emotions of investors and causing market volatility.
FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders' rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1 point origination.
Current California Mortgage Rates
Copyright © 2011 Realty Times. All Rights Reserved.
Mortgage Rates Today: Home Mortgage Rates Continue to Show Improvement by Ed Ferrara
Over the past week, mortgage rates continued to show improvement with a decrease of .125% for conforming 15 year fixed mortgage rates and 5/1 ARM loan rates. Freerateupdate.com's daily survey of wholesale and direct lenders show that 30 year fixed mortgage rates are at 4.750%, 15 year fixed mortgage rates are at 3.875% and 5/1 adjustable mortgage rates are at 3.125%. Conforming fixed rate mortgage loans continue to be popular with borrowers who want the security of a set monthly mortgage payment for the life of loan and are available with 0.7 to 1% origination fee to those with good credit.
Remaining unchanged, FHA 30 year fixed mortgage rates are at 4.500% and FHA 15 year fixed mortgage rates are at 4.000%. FHA 5/1 ARM loan rates are at 3.500% which is a decrease of .125%. FHA fixed mortgage rates continue to be competitive with conforming fixed mortgage rates, although FHA mortgage loans offer several benefits to borrowers including a low down payment requirement and easier credit qualifying. Borrowers must pay higher FHA closing costs (APR) because FHA charges an upfront mortgage insurance premium and other various fees. Jumbo mortgage rates saw no changes over the past week.
Jumbo 30 year fixed mortgage rates are at 5.375%, jumbo 15 year fixed mortgage rates are at 5.250% and jumbo 5/1 ARM loan rates are at 3.875%. Jumbo mortgage loans are required for mortgage financing above the conforming loan limit which is $417,000 to $729,250 depending on the property location. Available with 0.7 to 1% origination point, these are the best jumbo mortgage rates offered to well qualified borrowers.
MBS prices (mortgage backed prices) affect mortgage rates which move in the opposite direction. MBS price movements continue to be unpredictable and not necessarily dependent on the economic data reported. This past week's reports included an increase in private sector jobs, a decrease in weekly jobless claims and a lower unemployment rate. Although mortgage rates are down, MBA reported weekly purchase and refinance activity down. Regardless of economic reports released, the tensions in the Middle East continue to be driving the emotions of investors and causing market volatility.
FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders' rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1 point origination.
Current California Mortgage Rates
Copyright © 2011 Realty Times. All Rights Reserved.
Saturday, March 5, 2011
Mortgage Rates Ease Down
March 2, 2011 in Realty Times
Mortgage Rates Ease Down to Better Pricing by Ed Ferrara
This past week mortgage rates eased down to better pricing which is positive news for borrowers. Freerateupdate.com's daily survey of wholesale and direct lenders show that current 15 year fixed mortgage rates are at 3.875% after two decreases over the past week while 30 year fixed mortgage rates remain the same at 4.750%. 5/1 ARM loans rates also decreased .125% to the current 3.125%. Available with 0.7 to 1% origination fee, these are the best mortgage rates available to borrowers who have good credit and the ability to meet lender guidelines.
FHA 30 year fixed mortgage rates decreased .125% and are at 4.500% while FHA 15year fixed mortgage rates remain the same at 4.000%. FHA 5/1 adjustable mortgage rates also decreased .125% and are at 3.500%. Offering the benefit of a low down payment, FHA mortgage loans continue to be popular with borrowers even though FHA closing costs (APR) are higher due to various FHA fees and the upfront mortgage insurance premium.
Jumbo mortgage loans also saw improvement this week. Jumbo 30 year fixed mortgage rates are at 5.375% and jumbo adjustable mortgage rates are at 3.875%, both decreasing .125%. Jumbo 15 year fixed mortgage rates remain the same at 5.250%. Jumbo mortgage loans are necessary for mortgage financing above the conforming loan limit which is $417,000 to $729,250 depending on the area. For well qualified borrowers, these are the best jumbo mortgage rates available with 0.7 to 1% origination point.
MBS prices (mortgage backed securities) saw the highest jump last Tuesday which resulted in the decline of mortgage rates. Mortgage rates move in the opposite direction of MBS prices. The current unrest in the Middle East has caused investors to move money into safe investments this past week. Although pending home sales was below expectation, other economic data releases included higher consumer confidence, increased existing home sales, lower jobless claims and an increase in personal income, all of which point to a slow but steady economic recovery.
FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders' rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1 point origination.
California Mortgage Rates
Massachusetts Mortgage Rates
Texas Mortgage Rates
Copyright © 2011 Realty Times. All Rights Reserved.
Mortgage Rates Ease Down to Better Pricing by Ed Ferrara
This past week mortgage rates eased down to better pricing which is positive news for borrowers. Freerateupdate.com's daily survey of wholesale and direct lenders show that current 15 year fixed mortgage rates are at 3.875% after two decreases over the past week while 30 year fixed mortgage rates remain the same at 4.750%. 5/1 ARM loans rates also decreased .125% to the current 3.125%. Available with 0.7 to 1% origination fee, these are the best mortgage rates available to borrowers who have good credit and the ability to meet lender guidelines.
FHA 30 year fixed mortgage rates decreased .125% and are at 4.500% while FHA 15year fixed mortgage rates remain the same at 4.000%. FHA 5/1 adjustable mortgage rates also decreased .125% and are at 3.500%. Offering the benefit of a low down payment, FHA mortgage loans continue to be popular with borrowers even though FHA closing costs (APR) are higher due to various FHA fees and the upfront mortgage insurance premium.
Jumbo mortgage loans also saw improvement this week. Jumbo 30 year fixed mortgage rates are at 5.375% and jumbo adjustable mortgage rates are at 3.875%, both decreasing .125%. Jumbo 15 year fixed mortgage rates remain the same at 5.250%. Jumbo mortgage loans are necessary for mortgage financing above the conforming loan limit which is $417,000 to $729,250 depending on the area. For well qualified borrowers, these are the best jumbo mortgage rates available with 0.7 to 1% origination point.
MBS prices (mortgage backed securities) saw the highest jump last Tuesday which resulted in the decline of mortgage rates. Mortgage rates move in the opposite direction of MBS prices. The current unrest in the Middle East has caused investors to move money into safe investments this past week. Although pending home sales was below expectation, other economic data releases included higher consumer confidence, increased existing home sales, lower jobless claims and an increase in personal income, all of which point to a slow but steady economic recovery.
FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders' rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1 point origination.
California Mortgage Rates
Massachusetts Mortgage Rates
Texas Mortgage Rates
Copyright © 2011 Realty Times. All Rights Reserved.
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