Even though the Federal Reserve just started another round of economic stimulus, at least one Fed member does not think it is doing enough, mainly because of the housing market.
Federal Reserve Bank of New York President William Dudley said recently that "with the benefit of hindsight, monetary policy needed to be still more aggressive."
In September, the Fed began its third stage of quantitative easing, or QE3, a policy of buying up $40 billion worth of mortgage-backed securities each month Read more [...]
In an attempt to make mortgage easier to understand, the Consumer Financial Protection Bureau has proposed that lenders be required to offer no-point, no-fee home loans to borrowers.
"Consumers have a hard time comparing loans when they are dealing with a bewildering array of points and fees," said Richard Cordray, director of the Consumer Financial Protection Bureau, in a statement. "We want to provide consumers with clearer options and enable them to choose the loan that they believe is right Read more [...]
The Federal Housing Administration (FHA), an agency established during the Great Depression, was designed to help lower income borrowers and first-time homebuyers purchase homes.
FHA loan limits were increased in 2008, as a result of the nation's credit crunch, when foreclosures were driving the price of homes into the ground all over the country. Home loan lenders became reluctant to lend mortgages, so lawmakers increased the FHA's, Fannie Mae's, and Freddie Mac's limits to guarantee loans and Read more [...]
Delinquency mortgage rates have actually dropped for the last five quarters. While that might sound promising, many would argue that it really isn’t. Currently, there are more loans within the foreclosure process than at any other time since the mortgage crisis began.
According to an article on the Wall Street Journal website US banks are facing high mortgage delinquency rates and in fact according to a new report by the office of the Comptroller of Currency their delinquency rates are higher Read more [...]
Wells Fargo recently announced that they were going to be cutting out 1900 positions in their refinance department. Jobs to be eliminated include loan processors and other staff members that assisted with home loans. Wells Fargo is the largest US home lender and during the refinancing boom they went on a hiring spree in order to be able to keep up with consumer demand. Over the last several months as a result of the refinancing demand greatly diminishing, Wells Fargo has been forced to give these Read more [...]
According to an article on the Washington Post website federal regulators both from the FDIC and the Federal Reserve have put a new proposal on the table. If the regulations were to go through home buyers looking to get the best interest rates on a conventional mortgage would have to come up with a 20% down payment. What does this mean in dollars? If you plan to purchase a $200,000 home, in order to secure a great interest rate you would have to bring to the closing table a minimum down payment of Read more [...]
If you were waiting for rates to go lower before purchasing a home or refinancing, it looks like you may have missed the mark. For the fourth straight week, mortgage rates moved up and are now at a six month high. 30 year fixed rates this week are averaging around 4.61%, up from last week's rate of 4.46% and 15 year fixed rates rose to 3.96% up from last week's rate of 3.81%.
Why the sudden rise? There are a few items to look at. First it appears that Obama and congress are compromising and additional Read more [...]
The USDA Loan program is projected to run out of money by month's end. A new bill which recently passed in the House could help to keep loans available, if it passes the Senate vote. USDA home loans are loans that are available only to people that live in rural areas. While a private institution lends the money and services the loan, these loans are 100% guaranteed by the government. They have become increasingly popular to homeowners that qualify for them.
The house bill, entitled the Rural Read more [...]
Last month the Obama administration proposed changes to HAMP, the Home Affordable Modification Program. Proposed expansions to the program include helping underwater borrowers with principal reductions and even provisions to help the unemployed. While the concept of the program may sound good, its overall success so far has been dismal. The program is supposed to help struggling home owners, who otherwise might have to foreclose, be able to stay in their home. To date the program has helped just Read more [...]
Long-term mortgages rates climbed higher during the latest week as U.S. Treasury bond yields increased, according to mortgage giant Freddie Mac Thursday.
In its weekly mortgage market survey, Freddie Mac found that the average interest rate on a 30-year mortgage loan jumped to 6.46 percent, excluding fees, during the week ended Oct. 30, 2008, up from 6.04 percent the previous week. One year ago, the average rate was 6.26 percent.
"Long-term mortgage rates followed long-term Treasury bond yields Read more [...]