Interest Rates Fall

Mortgage rates continued to creep down near record lows this week, according to reports from Freddie Mac and Bankrate.com. Rates fell all around in Freddie Mac's Primary Mortgage Market Survey for the week ending May 2. According to the weekly survey, the 30-year fixed-rate mortgage (FRM) averaged 3.35 percent (0.7 point) this week, down from 3.40 percent last week. The all-time low average is 3.31 percent, set the week of November 21, 2012. For the second week in a row, the 15-year FRM reached a new low, falling to 2.56 percent (0.7 point).

Mortgage rates hit lows

 Freddie Mac now puts the average rate for a 30-year fixed mortgage at 4.12 percent and the 15-year rate at 3.33 percent

Qualified Residential Mortgage

If the federal regulators' proposed definition of the Qualified Residential Mortgage (QRM) had been in effect last year, nearly 40% of originations would have failed to meet the 20% down-payment requirement, CoreLogic reports.


In a mortgage-trends publication released this week, the data provider notes that 39% of 2010 originations had a loan-to-value (LTV) ratio about 80%.

"Even if the down-payment constraint is moved down to 10 percent, the impact is large because nearly one-quarter of all 2010 originations had higher LTV ratios," CoreLogic says in its report.

The proposed 20% down-payment standard would cause more sluggish sales in some states in the short term, CoreLogic says. According to the company's analysis, the down-payment requirement would have the least effect in New York, Hawaii and North Dakota, and the greatest impact on sales in Georgia and Colorado, which are examples of states that have a lower-than-average share of below-80% LTV loans.

Democratic Faction Unveils Plan to Retain 30-Year Mortgage Post-GSEs

http://ndc.crowley.house.gov/images/stories/Events/newdemhousingreformprinciples.pdf

The New Democratic Coalition has added the nation's housing finance system to its list of things to "modernize." They've outlined principles for following through with the wind-down of Fannie and Freddie while maintaining a limited government role to ensure access to the 30-year fixed-rate mortgage. But the debate is intense over whether the 30-year mortgage should stick around. With or without it, one research group says the numbers prove government guarantees aren't necessary to entice private investors.

Regulators Propose Tough New Down Payments for Home Loans

Having failed to head off a catastrophic rise in reckless mortgages during the housing bubble, federal regulators released a proposal yesterday that could make mortgages more expensive if the borrowers do not put at least 20 percent down- and even bigger down payments if people are refinancing, CongressDaily reported yesterday. The proposed rules would also lean against adjustable-rate loans and set much tougher income requirements for borrowers. The proposal, which is more than 300-pages long and asks for public comment on scores of unresolved questions, was drafted jointly by about a half-dozen federal banking and financial regulatory agencies.

Mortgage Rates Rise

Industry data released Thursday show that interest rates for 30-year fixed mortgages moved up this week, while adjustable-rate mortgages dipped lower. Freddie Mac puts the 30-year fixed-rate mortgage at an average of 4.74 percent. The 15-year rate, on the other hand, headed down with adjustable rates. Analysts say the gap between fixed and adjustable rates has grown significantly in the last six months, making some of the hybrid adjustable rate products a compelling option for certain borrowers.

http://www.dsnews.com/articles/reports-30-year-fixed-rates-edge-higher-2011-01-20

MORTGAGE INTEREST RATES EASE FURTHER THIS WEEK

Mortgage rates retreated this week, marking the second week in a row they've headed lower. Interest rates began a sharp ascension in early November, and experts have warned that the trend is likely to continue. The recent change of pace was attributed to last Friday's jobs report, which was weaker than market forecasts. Freddie Mac says 30-year rates this week dropped to 4.71 percent while 15-year rates fell to 4.08 percent. Bankrate says the larger jumbo 30-year fixed rate edged down to 5.57 percent.

Freddie Mac's Nothaft Predicts Mortgage Rates to Remain Below 5%

Frank Nothaft, chief economist for Freddie Mac, says he expects long-term mortgage interest rates to hold below the 5 percent threshold throughout 2011, as key macroeconomic drivers provide a backdrop that supports a continued, albeit gradual, recovery in the housing and mortgage markets.

Mortgage Rates

The GSE reported that rates for 30-year fixed mortgages averaged 4.24 percent (0.8 point) for the week ending November 4, 2010. That’s up slightly from last week’s average of 4.23 percent, and marks the third consecutive week the 30-year rate has increased in Freddie Mac’s study.


The average rate on 15-year fixed mortgages came in at 3.63 percent (0.7 point), according to the GSE, down from 3.66 percent last week.

FHA Loan Apps

MBA also reported that the average contract interest rate for 30-year fixed-rate mortgages decreased to 4.25 percent last week, down from 4.38 percent. Rates for 15-year fixed-rate mortgages also fell, from 3.77 percent to 3.73 percent.

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 puts the 30-year fixed rate at 4.32 percent and the 15-year rate at 3.75 percent. Bankrate says rates for the larger jumbo 30-year fixed mortgage also inched lower to 5.16 percent.

Mortgage interest rates are already at their lowest level in decades, and this week, they headed even lower. The descent was prompted largely by fears that another housing downturn could hamper the economic recovery, after July’s home sales took a deeper plunge than expected.

Long-term mortgage rates have dropped to new record lows for nine weeks out of the last 10, according to Freddie Mac. This week, the GSE reports that the average rate for a 30-year fixed-rate mortgage (FRM) came in at 4.36 percent (0.7 point), down from 4.42 percent last week.


Rates for 15-year FRMs are now averaging 3.86 percent (0.6 point) in Freddie’s study. That’s down from last week’s average of 3.90 percent.

Adjustable-rate mortgages (ARMs), too, are treading extremely low. Freddie Mac says the 5-year ARM remained tied at its low for the survey at 3.56 percent (0.6 point). One-year ARMs dropped from 3.53 percent last week to 3.52 percent (0.7 point).

National Mortgage Delinquency Rate

The national mortgage loan delinquency rate – measuring the ratio of borrowers 60 or more days behind on their home loan payments – fell again in the second quarter of 2010, suggesting the credit conditions in the housing sector have begun to stabilize, according to TransUnion.