Archive for the 'Mortgage News' Category

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 [...]

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 [...]

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 [...]

Millennials More Likely than Gen Xers to Be Saving, But Not For Down Payments

The country’s youngest adult generation, those aged 18 to 34, otherwise known as Millennials are more likely than both Generation Xers and Baby Boomers to be saving for short and long term financial goals, but saving a for a house is low on the priority list. The latest quarterly renters survey from mortgage giant Freddie Mac found that 92 percent of Millennials are saving for a major purchase (not necessarily a house though) and 94 percent are saving for a vacation. Those rates among Boomers Read more [...]

Mortgage Rates Rise to 6-Week High

Long-term mortgage interest rates grew to their highest level in six weeks, according to mortgage guarantor Freddie Mac, in reaction to the Federal Reserve’s suggestion of a rate increase in December. The average rate on a 30-year fixed rate mortgage (FRM) jumped to 3.87 percent, excluding fees, during the week ended November 5, 2015, up from 3.76 percent the week before and the highest since the week of September 17. The new rate is still lower than the same time last year though when it averaged Read more [...]

New Fannie Mae Rules Allow for ‘Non-Traditional’ Credit Histories

Mortgage guarantor Fannie Mae is easing its credit requirements for homebuyers, in the hopes of expanding the benefits of homeownership to qualified borrowers who may not have a traditional credit history. FannieMae, a company which backs mortgages made by private lenders and sells those loans in bundles as securities, announced Monday that it will allow lenders to use alternate forms of credit information to qualify applicants. Up to this point, lenders would input borrower data into Fannie Read more [...]