| A Good Explanation |
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Where Mortgage Rates "Come From"For every type of U.S. mortgage, there's a different basis for assigning a mortgage rate. For example, mortgage rates for portfolio loans (e.g.; jumbo mortgage, super jumbo mortgage, non-warrantable condo) are often based on some cost of funds-type index such as COFI, plus a spread. HELOCs are based on Prime Rate. Other mortgage rates, though, are based mortgage bond prices within a particular market. Conforming mortgage rates are based on the price of Fannie Mae and Freddie Mac mortgage-backed securities, as one example. By contrast, FHA mortgage rates are based on the price of a Ginnie Mae mortgage-backed security. This is why conforming mortgage rates can fall on a day that FHA mortgage rates are up -- the products' respective rates come from separate, distinct markets. Note that no mortgage rates, however, are based on the 10-year treasury. If you want to know where mortgage rates are headed, therefore, you have to watch the mortgage-backed bond market. That's fa ct and it's provable. 10-Year Treasuries Are A False IndicatorIn defense of the 10-year treasury, it's got a terrific, long term correlation to mortgage bonds And perhaps that's why "expert" like to link the two. The issue, though, is that everyday homeowners in places like Orange County, California; Bergen County, New Jersey; or Montgomery County, Maryland don't shop for mortgage rates over the 5-year correlation window cited by the expert. Rate shoppers compare mortgages rates over the course of one day. There's very little correlation between the 10-year treasury and mortgage bonds when we consider the actual timeline on which a rate shopper is active. On same days, 10-year treasuries will move in the same direction as Fannie Mae, Freddie Mac or Ginnie Mae bonds. On other days, 10-year treasuries will move in the opposite direction. In 2011, there was only one calendar day on which the 10-year treasury note and the current Fannie Mae coupon made the exact same move in the exact same direction. Nearly every day, the 10-year treas ury moves differently from the drivers of conforming and FHA mortgage rates, proving that you can't use the 10-year treasury as a mortgage rate proxy. It fails terribly. Thank you for allowing me to serve you. Kevin Lambe Loan Officer 1550 E McKellips Rd Suite 117 Mesa, AZ 85203 Phone: 480-344-1992 Fax: 480-374-7092 klambe@amerifirst.us www.kevinlambe.com  Cut and paste this link into your browser: http://www.referralswelcome.com/referrals.html?qid=50665610 | ||
Showing posts with label interest. Show all posts
Showing posts with label interest. Show all posts
Saturday, May 12, 2012
Where Mortgage Rates "Come From"
Monday, April 2, 2012
Pressure on mortgage rates eases
Fed chairman says unemployment remains a concern By Inman News®
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After climbing for two weeks in a row, mortgage rates reversed course this week, with rates on 30-year fixed-rate loans again below 4 percent after Federal Reserve Chairman Ben Bernanke voiced worries about persistently high unemployment.
Freddie Mac's Primary Mortgage Market Survey showed rates on 30-year fixed-rate mortgages averaged 3.99 percent with an average 0.7 point for the week ending March 29, down from 4.08 percent last week and 4.86 percent a year ago. Rates on 30-year fixed-rate mortgages hit an all-time low in records dating to 1971 of 3.87 percent during the first three weeks of February.
Rates on 15-year fixed-rate mortgages, a popular refinancing option, averaged 3.23 percent with an average 0.8 point, down from 3.3 percent last week and 4.09 percent a year ago. Rates on 15-year loans hit a low in records dating to 1991 of 3.13 percent during the week ending March 8.
For 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans, rates averaged 2.9 percent, with an average 0.8 point, down from 2.96 percent last week and 3.7 percent a year ago. The five-year ARM hit a low in records dating to 2005 of 2.8 percent the week of Feb. 23.
Rates on 1-year Treasury-indexed ARMs averaged 2.78 percent with an average 0.6 point, down from 2.84 percent last week and 3.26 percent a year ago. Rates on one-year ARMs hit an all-time low in records dating to 1984 of 2.72 percent during the week ending March 1.
Looking back a week, a separate survey by the Mortgage Bankers Association showed demand for purchase loans during the week ending March 23 was up a seasonally adjusted 3.3 percent from the week before. The MBA survey showed demand for purchase loans was up 1 percent from a year ago.
Requests to refinance existing mortgages were down for the sixth week in a row, to a level 24.2 percent lower than a peak seen in February, 2012. Requests to refinance still accounted for 71.9 percent of all mortgage applications, but that's the lowest share since July 2011.
Freddie Mac's chief economist, Frank Nothaft, attributed the decline in mortgage rates to weaker housing economic indicators.
The Standard & Poor's/Case Shiller 20-City Composite home price index slid in January to its lowest reading in about a decade, Nothaft said in a statement. "In addition, new-home sales declined 0.5 percent in February, below the market consensus of an increase, and pending existing home sales also declined for the month."
Mortgage rates are determined largely by investor demand for mortgage-backed securities (MBS) guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.
During the downturn, the government helped keep mortgage rates low by buying more than $1 trillion in MBS. The government's "quantitative easing" programs -- which also included purchases of Treasury bonds -- added to the demand for MBS and similar investments, pushing up their price, and reducing their yields.
Although the Federal Reserve discontinued its mortgage-backed securities purchases in March 2010, mortgage rates continued to fall as MBS remained popular with investors seeking a safe haven from turmoil in financial markets.
As the economic recovery picks up steam, mortgage rates and interest rates could rise if government-backed MBS and Treasury bonds fall out of favor with investors.
Real estate economists and analysts surveyed by the Urban Land Institute expect 10-year Treasurys to rise as the recovery picks up steam, from an average of 2.4 percent this year to 3.1 percent in 2013 and 3.8 percent in 2014.
Historically, mortgage rates have tracked 10-year Treasury yields fairly closely, so that forecast implies mortgage rates could rise 140 basis points, or 1.4 percentage points, in the next two years.
According to Euro Pacific Capital Inc. CEO Peter Schiff, the flight from bonds could be exacerbated by the government's massive holdings, which Schiff thinks have a distorting effect on the market.
Schiff -- whose views are more pessimistic than those of many investors and economists -- predicts a bubble in bond markets will lead to another economic crash in the next two to three years.
The root of the problem is similar to the problems faced by debtor nations in Europe, Schiff told Forbes this week: “We consume more than we produce and we borrow abroad, but we are never going to be able to pay them back."
Mortgage rates began their recent surge on March 13 after the Federal Reserve's open market committee announced that its members do not anticipate an expansion of existing quantitative easing programs.
The committee said the Fed will continue reinvesting principal payments from its MBS holdings into like investments, and rolling over maturing Treasury securities at auction. Signs of an economic recovery and a surge in the stock market may also have hurt demand for Treasurys and MBS.
Yields on Treasurys and MBS came back down this week after Federal Reserve Chairman Ben Bernanke said unemployment remains a worry and that the Fed remains prepared to boost the economy with "continued accommodative policies."
Much of the recent improvement in job markets is due to a slowdown in layoffs rather than increased hiring, Bernanke said Monday at an economics conference.
The private sector employs 5 million fewer workers than it did at its peak, and the workforce has grown in the meantime, he noted. The unemployment rate in February was 3 percentage point above its average over the 20 years before the recession.
Further improvements in the unemployment rate "will likely require a more-rapid expansion of production and demand from consumers and businesses, a process that can be supported by continued accommodative policies," Bernanke said.
The National Association of REALTORS®' chief economist, Lawrence Yun, stated that fears of rising mortgage rates could spur homebuyer demand. But if rates increase significantly, that would reduce buyers' purchasing power, Yun said.
Yun predicts rates on 30-year fixed-rate mortgages will soon be in the 4.3 to 4.6 percent range.
In their most recent forecast, economists at Fannie Mae said they expect 30-year fixed-rate loans to average 4.1 percent during the second half of 2012, and 4.3 percent in 2013.
Copyright 2012 Inman News
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After climbing for two weeks in a row, mortgage rates reversed course this week, with rates on 30-year fixed-rate loans again below 4 percent after Federal Reserve Chairman Ben Bernanke voiced worries about persistently high unemployment.
Freddie Mac's Primary Mortgage Market Survey showed rates on 30-year fixed-rate mortgages averaged 3.99 percent with an average 0.7 point for the week ending March 29, down from 4.08 percent last week and 4.86 percent a year ago. Rates on 30-year fixed-rate mortgages hit an all-time low in records dating to 1971 of 3.87 percent during the first three weeks of February.
Rates on 15-year fixed-rate mortgages, a popular refinancing option, averaged 3.23 percent with an average 0.8 point, down from 3.3 percent last week and 4.09 percent a year ago. Rates on 15-year loans hit a low in records dating to 1991 of 3.13 percent during the week ending March 8.
For 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans, rates averaged 2.9 percent, with an average 0.8 point, down from 2.96 percent last week and 3.7 percent a year ago. The five-year ARM hit a low in records dating to 2005 of 2.8 percent the week of Feb. 23.
Rates on 1-year Treasury-indexed ARMs averaged 2.78 percent with an average 0.6 point, down from 2.84 percent last week and 3.26 percent a year ago. Rates on one-year ARMs hit an all-time low in records dating to 1984 of 2.72 percent during the week ending March 1.
Looking back a week, a separate survey by the Mortgage Bankers Association showed demand for purchase loans during the week ending March 23 was up a seasonally adjusted 3.3 percent from the week before. The MBA survey showed demand for purchase loans was up 1 percent from a year ago.
Requests to refinance existing mortgages were down for the sixth week in a row, to a level 24.2 percent lower than a peak seen in February, 2012. Requests to refinance still accounted for 71.9 percent of all mortgage applications, but that's the lowest share since July 2011.
Freddie Mac's chief economist, Frank Nothaft, attributed the decline in mortgage rates to weaker housing economic indicators.
The Standard & Poor's/Case Shiller 20-City Composite home price index slid in January to its lowest reading in about a decade, Nothaft said in a statement. "In addition, new-home sales declined 0.5 percent in February, below the market consensus of an increase, and pending existing home sales also declined for the month."
Mortgage rates are determined largely by investor demand for mortgage-backed securities (MBS) guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.
During the downturn, the government helped keep mortgage rates low by buying more than $1 trillion in MBS. The government's "quantitative easing" programs -- which also included purchases of Treasury bonds -- added to the demand for MBS and similar investments, pushing up their price, and reducing their yields.
Although the Federal Reserve discontinued its mortgage-backed securities purchases in March 2010, mortgage rates continued to fall as MBS remained popular with investors seeking a safe haven from turmoil in financial markets.
As the economic recovery picks up steam, mortgage rates and interest rates could rise if government-backed MBS and Treasury bonds fall out of favor with investors.
Real estate economists and analysts surveyed by the Urban Land Institute expect 10-year Treasurys to rise as the recovery picks up steam, from an average of 2.4 percent this year to 3.1 percent in 2013 and 3.8 percent in 2014.
Historically, mortgage rates have tracked 10-year Treasury yields fairly closely, so that forecast implies mortgage rates could rise 140 basis points, or 1.4 percentage points, in the next two years.
According to Euro Pacific Capital Inc. CEO Peter Schiff, the flight from bonds could be exacerbated by the government's massive holdings, which Schiff thinks have a distorting effect on the market.
Schiff -- whose views are more pessimistic than those of many investors and economists -- predicts a bubble in bond markets will lead to another economic crash in the next two to three years.
The root of the problem is similar to the problems faced by debtor nations in Europe, Schiff told Forbes this week: “We consume more than we produce and we borrow abroad, but we are never going to be able to pay them back."
Mortgage rates began their recent surge on March 13 after the Federal Reserve's open market committee announced that its members do not anticipate an expansion of existing quantitative easing programs.
The committee said the Fed will continue reinvesting principal payments from its MBS holdings into like investments, and rolling over maturing Treasury securities at auction. Signs of an economic recovery and a surge in the stock market may also have hurt demand for Treasurys and MBS.
Yields on Treasurys and MBS came back down this week after Federal Reserve Chairman Ben Bernanke said unemployment remains a worry and that the Fed remains prepared to boost the economy with "continued accommodative policies."
Much of the recent improvement in job markets is due to a slowdown in layoffs rather than increased hiring, Bernanke said Monday at an economics conference.
The private sector employs 5 million fewer workers than it did at its peak, and the workforce has grown in the meantime, he noted. The unemployment rate in February was 3 percentage point above its average over the 20 years before the recession.
Further improvements in the unemployment rate "will likely require a more-rapid expansion of production and demand from consumers and businesses, a process that can be supported by continued accommodative policies," Bernanke said.
The National Association of REALTORS®' chief economist, Lawrence Yun, stated that fears of rising mortgage rates could spur homebuyer demand. But if rates increase significantly, that would reduce buyers' purchasing power, Yun said.
Yun predicts rates on 30-year fixed-rate mortgages will soon be in the 4.3 to 4.6 percent range.
In their most recent forecast, economists at Fannie Mae said they expect 30-year fixed-rate loans to average 4.1 percent during the second half of 2012, and 4.3 percent in 2013.
Copyright 2012 Inman News
Friday, July 16, 2010
Mortgage Rates Stable This Week
Realty Times of July 16, 2010
Mortgage Rates Stable This Week
Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®). 30-Year Mortgage Rates tied last week's record low.
News Facts
30-year fixed-rate mortgage (FRM) averaged 4.57 percent with an average 0.7 point for the week ending July 15, 2010, unchanged from last week when it averaged 4.57 percent. Last year at this time, the 30-year FRM averaged 5.14 percent. This rate ties the all-time low reached last week in Freddie Mac's 39-year survey.
15-year FRM this week averaged 4.06 percent with an average 0.7 point, down from last week when it averaged 4.07 percent. A year ago at this time, the 15-year FRM averaged 4.63 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.85 percent this week, with an average 0.7 point, up from last week when it averaged 3.75 percent. A year ago, the 5-year ARM averaged 4.83 percent.
1-year Treasury-indexed ARM averaged 3.74 percent this week with an average 0.7 point, down from last week when it averaged 3.75 percent. At this time last year, the 1-year ARM averaged 4.76 percent.
Frank Nothaft, Freddie Mac vice president and chief economist, reports, "Fixed-rate mortgages continued to hover at 50-year lows, thereby supporting homebuyer affordability and refinance activity. Over the past month, about four out of five conventional loan applications and more than one-half of FHA and VA loan applications were for refinance. Compared to the recent peak in 30-year fixed interest rates 13 months ago (week of June 11, 2009), current rates are a full percentage point lower. With today's rates, homebuyers would save about $1,500 in payments each year on a $200,000 loan compared to rates last June."
Copyright © 2010 Realty Times. All Rights Reserved.
Mortgage Rates Stable This Week
Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®). 30-Year Mortgage Rates tied last week's record low.
News Facts
30-year fixed-rate mortgage (FRM) averaged 4.57 percent with an average 0.7 point for the week ending July 15, 2010, unchanged from last week when it averaged 4.57 percent. Last year at this time, the 30-year FRM averaged 5.14 percent. This rate ties the all-time low reached last week in Freddie Mac's 39-year survey.
15-year FRM this week averaged 4.06 percent with an average 0.7 point, down from last week when it averaged 4.07 percent. A year ago at this time, the 15-year FRM averaged 4.63 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.85 percent this week, with an average 0.7 point, up from last week when it averaged 3.75 percent. A year ago, the 5-year ARM averaged 4.83 percent.
1-year Treasury-indexed ARM averaged 3.74 percent this week with an average 0.7 point, down from last week when it averaged 3.75 percent. At this time last year, the 1-year ARM averaged 4.76 percent.
Frank Nothaft, Freddie Mac vice president and chief economist, reports, "Fixed-rate mortgages continued to hover at 50-year lows, thereby supporting homebuyer affordability and refinance activity. Over the past month, about four out of five conventional loan applications and more than one-half of FHA and VA loan applications were for refinance. Compared to the recent peak in 30-year fixed interest rates 13 months ago (week of June 11, 2009), current rates are a full percentage point lower. With today's rates, homebuyers would save about $1,500 in payments each year on a $200,000 loan compared to rates last June."
Copyright © 2010 Realty Times. All Rights Reserved.
Wednesday, June 30, 2010
4.25% 30-Yr Fixed Mortgage Rate
Realty Times of June 30, 2010
4.25% 30-Yr Fixed Mortgage Rate Available to Well-Qualified Consumers
by Ed Ferrara
Never before have mortgage rates been this low. 30-yr fixed mortgage rates are at 4.25% for well-qualified consumers paying a standard .07 to 1 point origination fee shows FreeRateUpdate.com research of wholesale lenders' rate sheets for brokers. 15-yr fixed mortgage rates, also at a record low, are at 3.75%.
A $250,000 30-year fixed mortgage at an interest rate of 4.25% has a monthly principal and interest payment of just $1,229.85 per month.
FHA mortgage rates today are nearly identical to those of conforming mortgages. Today's FHA 30-yr fixed rate is also 4.25%. That being said, MI and other FHA fees make the APR (closing costs) higher on an FHA loan, even with the same note rate.
Today's jumbo 30-yr fixed rate remains at 5.25%. Jumbo mortgage rates are also at a record low.
Wells Fargo is advertising a conventional 30-yr fixed-rate of 4.625% today, with an APR of 4.812%. (source: Wells Fargo Website)
Mortgage-backed securities prices, which drive mortgage rates in the opposite direction, were up significantly yesterday, helping to stabilize mortgage interest rates at their current record low. It's possible we could see even lower rates as the week goes on.
Copyright © 2010 Realty Times. All Rights Reserved.
4.25% 30-Yr Fixed Mortgage Rate Available to Well-Qualified Consumers
by Ed Ferrara
Never before have mortgage rates been this low. 30-yr fixed mortgage rates are at 4.25% for well-qualified consumers paying a standard .07 to 1 point origination fee shows FreeRateUpdate.com research of wholesale lenders' rate sheets for brokers. 15-yr fixed mortgage rates, also at a record low, are at 3.75%.
A $250,000 30-year fixed mortgage at an interest rate of 4.25% has a monthly principal and interest payment of just $1,229.85 per month.
FHA mortgage rates today are nearly identical to those of conforming mortgages. Today's FHA 30-yr fixed rate is also 4.25%. That being said, MI and other FHA fees make the APR (closing costs) higher on an FHA loan, even with the same note rate.
Today's jumbo 30-yr fixed rate remains at 5.25%. Jumbo mortgage rates are also at a record low.
Wells Fargo is advertising a conventional 30-yr fixed-rate of 4.625% today, with an APR of 4.812%. (source: Wells Fargo Website)
Mortgage-backed securities prices, which drive mortgage rates in the opposite direction, were up significantly yesterday, helping to stabilize mortgage interest rates at their current record low. It's possible we could see even lower rates as the week goes on.
Copyright © 2010 Realty Times. All Rights Reserved.
Friday, May 28, 2010
Markets Overseas Lowers Mortgage Rates
From Realty Times of May 28, 2010
Instability in Financial Markets Overseas Lowers Mortgage Rates Here
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.78 percent with an average 0.7 point for the week ending May 27, 2010, down from last week when it averaged 4.84 percent. Last year at this time, the 30-year FRM averaged 4.91 percent. The 30-year FRM has not been lower since the week ending December 3, 2009, when it averaged 4.71 percent.
The 15-year FRM this week averaged 4.21 percent with an average 0.7 point , down from last week when it averaged 4.24 percent. A year ago at this time, the 15-year FRM averaged 4.53 percent. The 15-year FRM has not been lower since Freddie Mac started tracking the 15-year FRM in August of 1991.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.97 percent this week, with an average 0.7 point, up from last week when it averaged 3.91 percent. A year ago, the 5-year ARM averaged 4.82 percent.
The 1-year Treasury-indexed ARM averaged 3.95 percent this week with an average 0.6 point, down from last week when it averaged 4.00 percent. At this time last year, the 1-year ARM averaged 4.69 percent. The 1-year ARM has not been lower since the week ending May 27, 2004 when it averaged 3.87 percent."
"These low rates will help to elevate home-buyer affordability and soften the effects of the sunset of the home-buyer tax credit," said Frank Nothaft, Freddie Mac vice president and chief economist. "The credit substantially propelled home sales, as reflected in the strength of the April existing and new home sales, which were up 7.6 percent and 14.8 percent, respectively.
Copyright © 2010 Realty Times. All Rights Reserved.
Instability in Financial Markets Overseas Lowers Mortgage Rates Here
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.78 percent with an average 0.7 point for the week ending May 27, 2010, down from last week when it averaged 4.84 percent. Last year at this time, the 30-year FRM averaged 4.91 percent. The 30-year FRM has not been lower since the week ending December 3, 2009, when it averaged 4.71 percent.
The 15-year FRM this week averaged 4.21 percent with an average 0.7 point , down from last week when it averaged 4.24 percent. A year ago at this time, the 15-year FRM averaged 4.53 percent. The 15-year FRM has not been lower since Freddie Mac started tracking the 15-year FRM in August of 1991.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.97 percent this week, with an average 0.7 point, up from last week when it averaged 3.91 percent. A year ago, the 5-year ARM averaged 4.82 percent.
The 1-year Treasury-indexed ARM averaged 3.95 percent this week with an average 0.6 point, down from last week when it averaged 4.00 percent. At this time last year, the 1-year ARM averaged 4.69 percent. The 1-year ARM has not been lower since the week ending May 27, 2004 when it averaged 3.87 percent."
"These low rates will help to elevate home-buyer affordability and soften the effects of the sunset of the home-buyer tax credit," said Frank Nothaft, Freddie Mac vice president and chief economist. "The credit substantially propelled home sales, as reflected in the strength of the April existing and new home sales, which were up 7.6 percent and 14.8 percent, respectively.
Copyright © 2010 Realty Times. All Rights Reserved.
Tuesday, May 25, 2010
Mortgage Rates at an All Time Low
From Realty Times of May 25, 2010
Today's Mortgage Rates at an All Time Low by Ed Ferrara
Wary of a volatile stock market and concerned about by European debt woes investors moved to bonds last week pushing bond prices up and mortgage rates down. Mortgage rates, which move the opposite direction of mortgage-backed securities prices, had wavered just below 5% for much of the year until last weeks big decline. Mortgage rates today are even lower than levels December of last year, what's now the previous all time low.
Today's official FreeRateUpdate.com conventional 30 year fixed mortgage rate, available to well-qualified borrowers paying about a point origination, is 4.5%. Today's conventional 15 year fixed rate is 4%, with some lenders reported "squeezing" out 3.875%.
Today's FHA 30 year fixed rate is 4.375%. APR (closing cost) on an FHA loan is typically much higher than that of a conventional mortgage because of MI and other FHA fees.
Today's jumbo 30 year fixed rate, for jumbo mortgages exceeding jumbo conforming loan limits, is 5.5%. It's reported 5.375% is available to borrowers with an extremely low loan to value ratio.
Wells Fargo, the nations largest volume mortgage originator, is currently offering a conventional 30 year fixed rate of 4.875%, with an APR of 5.065. Wells Fargo mortgage rates are available on their website.
FreeRateUpdate.com researches over 2 dozen wholesale lenders' rate sheets for brokers on a daily basis to determine the most accurate mortgage rates for well-qualified borrowers paying a standard origination fee of about 1 point.
Today's Mortgage Rates - currently available to well-qualified consumers at a standard .07 to 1 point origination.
30-yr fixed-rate - 4.500%
15-yr fixed-rate - 4.000%
5/1 ARM rate - 3.500%
FHA 30-yr fixed-rate - 4.375%
FHA 15-yr fixed-rate - 4.00%
FHA 5/1 ARM rate - 3.500%
VA 30-yr fixed-rate - 4.625%
Jumbo 30-yr fixed-rate - 5.500%
Jumbo Conforming 30-yr fixed-rate - 4.750%
--------------------------------------------------------------------------------
Copyright © 2010 Realty Times. All Rights Reserved.
Today's Mortgage Rates at an All Time Low by Ed Ferrara
Wary of a volatile stock market and concerned about by European debt woes investors moved to bonds last week pushing bond prices up and mortgage rates down. Mortgage rates, which move the opposite direction of mortgage-backed securities prices, had wavered just below 5% for much of the year until last weeks big decline. Mortgage rates today are even lower than levels December of last year, what's now the previous all time low.
Today's official FreeRateUpdate.com conventional 30 year fixed mortgage rate, available to well-qualified borrowers paying about a point origination, is 4.5%. Today's conventional 15 year fixed rate is 4%, with some lenders reported "squeezing" out 3.875%.
Today's FHA 30 year fixed rate is 4.375%. APR (closing cost) on an FHA loan is typically much higher than that of a conventional mortgage because of MI and other FHA fees.
Today's jumbo 30 year fixed rate, for jumbo mortgages exceeding jumbo conforming loan limits, is 5.5%. It's reported 5.375% is available to borrowers with an extremely low loan to value ratio.
Wells Fargo, the nations largest volume mortgage originator, is currently offering a conventional 30 year fixed rate of 4.875%, with an APR of 5.065. Wells Fargo mortgage rates are available on their website.
FreeRateUpdate.com researches over 2 dozen wholesale lenders' rate sheets for brokers on a daily basis to determine the most accurate mortgage rates for well-qualified borrowers paying a standard origination fee of about 1 point.
Today's Mortgage Rates - currently available to well-qualified consumers at a standard .07 to 1 point origination.
30-yr fixed-rate - 4.500%
15-yr fixed-rate - 4.000%
5/1 ARM rate - 3.500%
FHA 30-yr fixed-rate - 4.375%
FHA 15-yr fixed-rate - 4.00%
FHA 5/1 ARM rate - 3.500%
VA 30-yr fixed-rate - 4.625%
Jumbo 30-yr fixed-rate - 5.500%
Jumbo Conforming 30-yr fixed-rate - 4.750%
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Copyright © 2010 Realty Times. All Rights Reserved.
Tuesday, April 13, 2010
Mortgage Rates Dip
April 13, 2010 Realty Times
Mortgage Rates Dip - Private Buyers Fill Government Void
by Ed Ferrara
Last Wednesday afternoon, just as results of the weekly Freddie Mac survey were finalized, mortgage rates dipped. The decline in long term mortgage rates was an effect of rising MBS prices. Mortgage rates move opposite mortgage-backed securities prices. Surprisingly, so far private buyers have successfully filled the void left in mortgage-backed securities markets since the government discontinued their MBS purchasing program on Mar. 31st.
FreeRateUpdate.com research of wholesale lenders' rate sheets shows conventional 30-year fixed mortgages are available today at 4.875% to well-qualified consumers paying a standard .07 to 1 point origination, down from 5% this time last week. 15-yr fixed mortgages are available at 4.25, and 5/1 adjustable rate mortgages at 3.75.
FHA 30-yr fixed loans are available at 4.75%, down from 4.875 last week. Despite the FHA 30-yr rate being slightly better than that of the conforming 30-yr, cost and in turn APR is significantly higher because of MI and other FHA fees.
Jumbo 30-yr fixed mortgages remain available at 5.625%.
Despite rates near all time lows refinance applications are down a whopping 16% according to the Mortgage Bankers Association. Purchases, up for the third straight week, now make up half of all applications.
Today's Mortgage Rates:
30-yr fixed-rate - 4.875%
15-yr fixed-rate - 4.250%
5/1 ARM rate - 3.750%
FHA 30-yr fixed-rate - 4.750%
FHA 15-yr fixed-rate - 4.50%
FHA 5/1 ARM rate - 3.750%
VA 30-yr fixed-rate - 5.000
Jumbo 30-yr fixed-rate - 5.625%
Jumbo Conforming 30-yr fixed-rate - 5.250%
Source: freerateupdate.com
Copyright © 2010 Realty Times. All Rights Reserved.
Mortgage Rates Dip - Private Buyers Fill Government Void
by Ed Ferrara
Last Wednesday afternoon, just as results of the weekly Freddie Mac survey were finalized, mortgage rates dipped. The decline in long term mortgage rates was an effect of rising MBS prices. Mortgage rates move opposite mortgage-backed securities prices. Surprisingly, so far private buyers have successfully filled the void left in mortgage-backed securities markets since the government discontinued their MBS purchasing program on Mar. 31st.
FreeRateUpdate.com research of wholesale lenders' rate sheets shows conventional 30-year fixed mortgages are available today at 4.875% to well-qualified consumers paying a standard .07 to 1 point origination, down from 5% this time last week. 15-yr fixed mortgages are available at 4.25, and 5/1 adjustable rate mortgages at 3.75.
FHA 30-yr fixed loans are available at 4.75%, down from 4.875 last week. Despite the FHA 30-yr rate being slightly better than that of the conforming 30-yr, cost and in turn APR is significantly higher because of MI and other FHA fees.
Jumbo 30-yr fixed mortgages remain available at 5.625%.
Despite rates near all time lows refinance applications are down a whopping 16% according to the Mortgage Bankers Association. Purchases, up for the third straight week, now make up half of all applications.
Today's Mortgage Rates:
30-yr fixed-rate - 4.875%
15-yr fixed-rate - 4.250%
5/1 ARM rate - 3.750%
FHA 30-yr fixed-rate - 4.750%
FHA 15-yr fixed-rate - 4.50%
FHA 5/1 ARM rate - 3.750%
VA 30-yr fixed-rate - 5.000
Jumbo 30-yr fixed-rate - 5.625%
Jumbo Conforming 30-yr fixed-rate - 5.250%
Source: freerateupdate.com
Copyright © 2010 Realty Times. All Rights Reserved.
Monday, April 12, 2010
Mortgage Rates Lower After Strong Auction Demand
Rates Lower After Strong Auction Demand
Highlights Average 30 yr fixed rate Stocks (Weekly)
Continuing Jobless Claims fell to the lowest level since December 2008
The Fed lowered its forecasts for inflation in 2010 and 2011
As expected, the European Central Bank (ECB) made no change in rates
The Dow stock index reached an 18-month high
This week: -0.05% Dow: 10,950 +50
Last week: +0.10% NASDAQ: 2,425 +25
Although this week's economic data was generally stronger than expected, it was overshadowed by solid demand for the Treasury auctions and intensified concerns about the economic situation in Greece, which helped mortgage markets. After reaching the highest levels since August, mortgage rates ended a little lower than where they ended last week.
Recent increases in yields on long-term fixed-rate securities such as 10-yr Treasuries and mortgage-backed securities (MBS) appeared to have been sufficient to attract investors. Very strong demand from both foreign and domestic investors for Wednesday's 10-yr auction pushed Treasury yields lower, and mortgage rates followed. Increasing the appeal, renewed worries about the fiscal situation in Greece caused investors to seek the safety of US securities. Comforting statements from Fed officials that they expect inflation to remain low for a long time also added to the demand.
In the housing sector, February Pending Home Sales jumped 8% from January, far exceeding the consensus forecast. Pending Home Sales are a leading indicator of housing market activity. The chief economist of the National Association of Realtors (NAR) considered the data to be a potential sign of a 'second surge of home sales this spring'. To receive the homebuyer tax credit, contracts must be signed by the end of April, which likely boosted the results for February. As buyers seek to take advantage of the program, March and April pending sales may show strength as well.
Courtesy of:
Craig Bohall
Loan Officer
5304 E Southern Ave #101
Mesa, AZ 85206
480-344-3646
craig@myazmp.com
www.myazmp.com
Highlights Average 30 yr fixed rate Stocks (Weekly)
Continuing Jobless Claims fell to the lowest level since December 2008
The Fed lowered its forecasts for inflation in 2010 and 2011
As expected, the European Central Bank (ECB) made no change in rates
The Dow stock index reached an 18-month high
This week: -0.05% Dow: 10,950 +50
Last week: +0.10% NASDAQ: 2,425 +25
Although this week's economic data was generally stronger than expected, it was overshadowed by solid demand for the Treasury auctions and intensified concerns about the economic situation in Greece, which helped mortgage markets. After reaching the highest levels since August, mortgage rates ended a little lower than where they ended last week.
Recent increases in yields on long-term fixed-rate securities such as 10-yr Treasuries and mortgage-backed securities (MBS) appeared to have been sufficient to attract investors. Very strong demand from both foreign and domestic investors for Wednesday's 10-yr auction pushed Treasury yields lower, and mortgage rates followed. Increasing the appeal, renewed worries about the fiscal situation in Greece caused investors to seek the safety of US securities. Comforting statements from Fed officials that they expect inflation to remain low for a long time also added to the demand.
In the housing sector, February Pending Home Sales jumped 8% from January, far exceeding the consensus forecast. Pending Home Sales are a leading indicator of housing market activity. The chief economist of the National Association of Realtors (NAR) considered the data to be a potential sign of a 'second surge of home sales this spring'. To receive the homebuyer tax credit, contracts must be signed by the end of April, which likely boosted the results for February. As buyers seek to take advantage of the program, March and April pending sales may show strength as well.
Courtesy of:
Craig Bohall
Loan Officer
5304 E Southern Ave #101
Mesa, AZ 85206
480-344-3646
craig@myazmp.com
www.myazmp.com
Saturday, October 24, 2009
Mortgage Rate Rises to 5 Percent
Realty Times of October 23, 2009
National Average Long-Term Mortgage Rate Rises to 5 Percent
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.00 percent with an average 0.7 point for the week ending October 22, 2009, up from last week when it averaged 4.92 percent. Last year at this time, the 30-year FRM averaged 6.04 percent.
The 15-year FRM this week averaged 4.43 percent with an average 0.6 point, up from last week when it averaged 4.37 percent. A year ago at this time, the 15-year FRM averaged 5.72 percent.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.40 percent this week, with an average 0.6 point, up from last week when it averaged 4.38 percent. A year ago, the 5-year ARM averaged 6.06 percent.
The one-year Treasury-indexed ARM averaged 4.54 percent this week with an average 0.6 point, down from last week when it averaged 4.60 percent. At this time last year, the 1-year ARM averaged 5.23 percent.
"Following bond yields, long-term mortgages rates edged up slightly this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "Although rates for 5/1 ARMs and traditional 1-year ARMs are around half a percentage point below 30-year fixed mortgages, consumers appear to be seeking the stability of fixed-rate mortgages. According to the Mortgage Bankers Association, ARMs averaged only about 6 percent of the number of mortgage applications in September and October thus far."
"The housing market is still trying to recover in the second half of the year. The Federal Reserve reported in its October 21st regional economic review that housing market conditions improved in recent weeks, primarily from a pickup in sales of low-to medium-priced houses. However, residential construction activity was reported to remain weak in most areas. New construction of single family homes rebounded in September, rising at a 3.9 percent annual rate, but did not erase all of the declines set in August, based on figures released by the Department of Commerce. Moreover, homebuilder confidence, as measured by the National Association of Homebuilder's Housing Market Index, fell slightly in October and marked the first decline since January of this year."
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Copyright © 2009 Realty Times. All Rights Reserved.
National Average Long-Term Mortgage Rate Rises to 5 Percent
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.00 percent with an average 0.7 point for the week ending October 22, 2009, up from last week when it averaged 4.92 percent. Last year at this time, the 30-year FRM averaged 6.04 percent.
The 15-year FRM this week averaged 4.43 percent with an average 0.6 point, up from last week when it averaged 4.37 percent. A year ago at this time, the 15-year FRM averaged 5.72 percent.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.40 percent this week, with an average 0.6 point, up from last week when it averaged 4.38 percent. A year ago, the 5-year ARM averaged 6.06 percent.
The one-year Treasury-indexed ARM averaged 4.54 percent this week with an average 0.6 point, down from last week when it averaged 4.60 percent. At this time last year, the 1-year ARM averaged 5.23 percent.
"Following bond yields, long-term mortgages rates edged up slightly this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "Although rates for 5/1 ARMs and traditional 1-year ARMs are around half a percentage point below 30-year fixed mortgages, consumers appear to be seeking the stability of fixed-rate mortgages. According to the Mortgage Bankers Association, ARMs averaged only about 6 percent of the number of mortgage applications in September and October thus far."
"The housing market is still trying to recover in the second half of the year. The Federal Reserve reported in its October 21st regional economic review that housing market conditions improved in recent weeks, primarily from a pickup in sales of low-to medium-priced houses. However, residential construction activity was reported to remain weak in most areas. New construction of single family homes rebounded in September, rising at a 3.9 percent annual rate, but did not erase all of the declines set in August, based on figures released by the Department of Commerce. Moreover, homebuilder confidence, as measured by the National Association of Homebuilder's Housing Market Index, fell slightly in October and marked the first decline since January of this year."
--------------------------------------------------------------------------------
Copyright © 2009 Realty Times. All Rights Reserved.
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