Archive for the 'Mortgage Loan News' Category

Lower Rates Unable to Boost Home Buying

Even after long-term mortgage interest rates plunged to an almost 18-month low last week, there was no positive effect on the number of home purchase applications, according to the Mortgage Bankers Assocation. The rock-bottom rates did however push refinance applications higher. Rates fell as worried investors turned to bonds, said MBA chief economist Mike Frantantoni in a statement. "Continuing concerns about weak economic growth in Europe and a few U.S. economic indicators that came in below Read more [...]

Lenders Step In For Secondary Market on Jumbo Loans

Most mortgage banks and lenders traditionally prefer to sell off any home loans they make to the secondary market as soon as they make them. But for one segment of the market – the jumbo loan – lenders are having a change of heart. The secondary market – investors who buy up securities made of mortgages that have been originate by banks and bundled together in groups – has only been able to purchase 2.3 percent of all jumbo loans made in the first half of 2014, according to industry newsletter Read more [...]

Mortgage Origination Volume Inches Up in Latest Week

The number of mortgage applications filed this past week was little changed from the week before, according to the Mortgage Bankers Association, as a rise in refinance requests tempered a decline in home purchase applications. The MBA’s measure of all mortgage application volume - the Market Composite Index – eked out a 0.2 percent increase during the week ended August 29, 2014. That was a result of the Refinance Index growing by one percent, but the Purchase Index falling by 2 percent. Refinance Read more [...]

Mortgage Rates End July Where They Started

The average rate on long-term U.S. mortgage loans at the end of July fell back to its original level from the beginning of the month, according to mortgage finance giant Freddie Mac, but rates could start to pick up next week. The 30-year conventional fixed-rate mortgage carried an average rate of 4.12 percent, excluding points, during the week ended July 31, down slightly from 4.13 percent the previous week. The rates is lower than last year’s 4.39 percent. Rates made little movement overall Read more [...]

Rising Prices Help Home Equity Loans Make A Comeback

Many U.S. homeowners finally have a good chunk of equity in their homes again. And they are ready to put it to use. During the first quarter, the number of new home-equity lines of credit (HELOC) rose to 230,200, a nine percent increase from the year before, according to credit reporting company Equifax. With the average HELOC growing to $100,207, those loans meant that homeowners had the potential to use up to $23.4 billion, a level not seen in over six years, since 2008. HELOCs allow homeowners Read more [...]

Mortgage Rates Fall Back to Yearly Low

Long-term mortgage interest rates slid back down in the latest week, according to mortgage giant Freddie Mac, matching their lowest level year-to-date. The Freddie Mac Primary Mortgage Market Survey found that the average rate on a 30-year fixed rate mortgage (FRM) slipped to 4.12 percent, excluding points during the week ended July 3, 2014, down from 4.14 percent. That ties with the lowest rate this year from just over a month ago during the week of May 29. Last year at this time, the average Read more [...]

Only 1 out of 8 Homeowners is Underwater

The percentage of U.S. homeowners underwater on their mortgages fell by 37 percent in the latest year, according to new data from property information firm CoreLogic, and that number could fall even more before 2014 is over. During the first quarter of this year there were roughly 6.3 million borrowers with negative equity – when the mortgage is higher than the property is worth – or 12.7 percent of all homes with a mortgage. That is down from 6.6 million borrowers or 13.4 percent from the Read more [...]

New Fannie Mae Regulator Moves to Loosen Mortgage Credit

The new head of the Federal Housing Finance Agency (FHFA) has announced plans that would ramp up government involvement in the housing market, instead of reducing its footprint as many in Congress have argued for. Even though the House and Senate are currently debating bills that seek to phase out the existence of mortgage-backing companies Fannie Mae and Freddie Mac, FHFA Director Mel Watt laid out a few new policy changes for both firms that would increase their presence in the market. "Our Read more [...]

Jumbo Loans Take Center Stage for Mortgage Lenders

For the past several decades, conventional mortgages have come with a cheaper price tag than “jumbo” mortgages – those above the conventional loan limits, currently set at $417,000. That trend has now reversed itself as the housing market makes an unbalanced recovery with lenders now catering heavily to jumbo loan borrowers. The average rate on a 30-year fixed rate conventional mortgage is 4.48 percent, excluding fees according to While conventional rates have traditionally Read more [...]

Mortgage Rates Tumble Making Way for More Home Sales

After rising the week before, long-term mortgage rates fell in the latest week on mixed economic data, a move that helped push applications for purchase mortgages higher. The average interest rate on a 30-year fixed rate mortgage sank to 4.34 percent, excluding fees, according to mortgage backer Freddie Mac, a three-week low, down from 4.41 percent the previous week. While still very historically low, rates have moved up considerably from a year ago when they averaged 3.43 percent. The drop Read more [...]