Cash-out Refis Hit Highest Rate in 8 Years

American homeowners are tapping their home equity again, with the cash-out share of refinances rising to its highest rate since 2008, according to data from Black Knight Financial Services. According to its Mortgage Monitor Report, Black Knight found that 42 percent or 300,000 of all first lien refinances in the 2015 third quarter involved taking cash out of borrowers’ equity, the highest share in 8 years. On average, cash-out borrowers took out an average of $60,000, the greatest average sum Read more [...]

Mortgage Rates Fall to 3-Month Low

A shaky global economy is scaring investors into bonds, sending long-term mortgage interest rates to their lowest levels in three months, according to data from mortgage backer Freddie Mac. The average rate on the 30-year fixed rate mortgage (FRM) fell for the fourth straight week, slipping to 3.79 percent, excluding fees in the week ended January 28, 2015, down from 3.81 percent the previous week but still up from 3.66 percent the year before. It is now the lowest it has been since the week of Read more [...]

Foreclosure Inventory Falls to 8-Year Low

The number of U.S. homes in the foreclosure process plunged in 2015 to its lowest level since 2007, an 8-year low. That is just one of several great pieces of new for the mortgage market released by foreclosure information firm CoreLogic in a recent report. In its November 2015 National Foreclosure Report, CoreLogic showed that there were 448,000 properties in the foreclosure process as of November 2015, a 21.8 percent decline from 573,000 the year before. That number represents 1.2 percent of Read more [...]

Mortgage Rates Follow Stock Market Down

Even though the Federal Reserve’s recent rate hike was supposed to push all interest rates higher, long-term mortgage interest rates have yet to see any impact. Foreign market concerns caused them to slump this week, mirroring the falling stock market, according to data from mortgage backer Freddie Mac. The average rate on a 30-year fixed-rate mortgage (FRM) fell to 3.92 percent, excluding fees, during the week ended January 14, 2016, down from 3.97 percent the previous week. The new rate is Read more [...]

Mortgage Applications Plummet Following Fed Rate Hike

The Federal Reserve’s December interest rate increase had a dramatic effect on mortgage applications, according to new data from the Mortgage Bankers Association, with refinance requests falling significantly. "Refinance application volume increased for three weeks in a row in early December ahead of the Fed's announcement that it was raising the federal funds rate," said Lynn Fisher, the association's vice president of research and economics. "During the two weeks following their announcement, Read more [...]

Mortgage Rates Hit 4 Percent before New Year

Long-term mortgage interest rates moved back above 4 percent during the last week of 2015, according to data from mortgage guarantor Freddie Mac, a sign that markets are reacting to the recent Federal Reserve rate hike. The average rate on a 30-year conventional, fixed-rate mortgage (FRM) jumped to 4.01percent, excluding fees, during the week ended December 31, 2015, up from 3.96 percent the previous week and up from the same time last year when it averaged 3.87 percent. It is now at its highest Read more [...]

November Home Sales Fall to 19-Month Low

As borrowers battled declining inventory and rising prices, November sales of existing U.S. homes fell to their lowest level in almost two years, according to the National Association of Realtors. Total existing home sales dropped 10.5 percent to a seasonally adjusted annual rate of 4.76 million in November, down from 5.32 million the month before. Sales have not seen a pace that slow since April 2014. This is the first time in 14 months that sales have actually decreased on a year-over-year basis, Read more [...]

Fed Makes First Rate Hike in 7 Years

The Federal Reserve decided the economy is doing well enough to finally raise its target interest rate after seven years, a move that will affect everything from savings to mortgage rates. “Information received since the Federal Open Market Committee met in October suggests that economic activity has been expanding at a moderate pace,” the Fed said in its December 16 statement. “The Committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity Read more [...]

TransUnion: Mortgage Market Will Reach Full Recovery in 2016

The healing U.S. mortgage market should be back to full health by the end of next year, according to a new forecast from credit data and reporting firm TransUnion. The TransUnion 2016 forecast calls for the serious delinquency rate – mortgages past due by 60 days or more – will fall to 2.06 by the end of 2016, into the range of a “normal” market. The rate is expected to fall to 2.5 percent at the end of 2015, down from 3.29 percent in 2014. The delinquency rate peaked at 6.94 percent Read more [...]

Fed Chair Ready to Raise Rates

Just two weeks before the Federal Open Market Committee’s interest rate meeting, Fed Chairwoman Janet Yellen has all but promised to raise rates from their rock-bottom lows of the past six years. In testimony before Congress’ Joint Economic Committee Thursday, Yellen said there have been enough signs of economic stability to warrant increasing the Federal Funds rate from its range of 0 to 0.25 percent. The rate has been at that ground level since December 2008. “The economy has come Read more [...]