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 [...]

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 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 [...]

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 [...]

Low Inventory, Market Volatility Hold Back Existing-Home Sales

Sales of existing U.S. homes declined in October, stymied by a lack of affordable inventory as well as consumer concern about the economy, according to the National Association of Realtors. On the bright side, mortgage rates remained low and distressed sales made up the lowest share over seven years. Total existing-home sales fell 3.4 percent to a seasonally adjusted rate of 5.36 million in October, down 5.55 million in September. Compared with one year ago, sales are up however, with a 3.9 percent 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 [...]

Fed Keeps Rate at Zero, But Warns of December Hike

The Federal Reserve’s interest rate-deciding body, the Federal Open Market Committee, chose this week to leave its target rate at or near zero percent, but promised to rethink the issue at its December meeting. The federal funds rate – the rate at which banks charge each other for overnight trades – was left alone in the range of zero to 0.25 percent for the next six weeks. It has been at that rock bottom position since September of 2008 when the Fed attempted to prop up the failing economy Read more [...]