Foreclosures-Refi

Foreclosure filings, which include default notices, scheduled auctions and bank repossessions, were reported on 333,837 properties in April - a 9% decrease from the previous month and a 2% decrease from April 2009, RealtyTrac reports. One in every 387 U.S. housing units received a foreclosure filing during the month. Florida posted the nation’s third highest foreclosure rate, with one in every 182 properties receiving a foreclosure filing, despite monthly and annual decreases in foreclosure activity.


Refinancing borrowers overwhelmingly chose fixed-rate loans in the first quarter, regardless of whether their original loan was an adjustable-rate mortgage (ARM) or a fixed-rate mortgage, according to Freddie Mac's quarterly Product Transition Report.

While 30-year fixed-rate mortgages are still the most preferred product chosen for the new loan, 15-year fixed-rate mortgages gained favor among refinancing borrowers who previously held 30-year fixed-rate mortgages, balloon mortgages and ARMs. Overall, fixed-rate loans accounted for more than 95% of refinance loans during the quarter.

Interest rates on 30-year and 15-year fixed-rate products averaged 5% and 4.38%, respectively, in Freddie Mac’s Primary Mortgage Market Survey, Freddie Mac’s vice president and chief economist, Frank Nothaft, says. The average initial rate on a 5/1 hybrid arm was 4.2%.