Interest rates offered on long-term mortgage loans this week fell to their lowest point in 13 weeks, according to data from mortgage finance company Freddie Mac, as economic news indicated some continued weak spots in the economy.
The average rate on a 30-year fixed rate mortgage was 3.41 percent, excluding fees, uring the week ended April 18, down from 3.43 percent the previous week and down from 3.90 percent one year ago. The last time the 30-year FRM was below 3.41 percent was the week of January Read more [...]
An already struggling housing industry did not get good news this week, hitting a new all time low since the housing bubble burst. Housing prices dipped to record lows with prices falling 4.2 percent during the first quarter of the year. While some cities saw prices slump to the lowest levels in eight years, others were hit even harder with prices dropping to levels not seen since 2000. Analysts have even said that the housing slump is now worse than the great depression.
Attributing to the dip Read more [...]
Fannie Mae and Freddie Mac, the regulators for government backed mortgages are looking at different models in hopes to change compensation for mortgage services. The changes they are looking into making would restructure fees and help to make the refinance process easier for troubled borrowers.
According to Edward J. DeMarco, the Federal Housing Finance Agency's acting director, "As the recent problems in managing mortgage delinquencies suggest, the current servicing-compensation model was not Read more [...]
The Obama administration has been being criticized for not taking a stance against Fannie Mae and Freddie Mac, the mortgage giants, who have cost tax payers nearly $145 billion since the government stepped in and took over in September of 2008. In answer, the white house announced today that they will have a meeting next month to look at viable options to help fix a broken mortgage industry.
The date is set for August 17th and the Treasury Department in Washington will "bring together leading 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 [...]
This week Bank of America reported that it has now permanently modified just under 33,000 home loans through the HAMP program. Just over 12,000 modifications took place during the past month.
HAMP, otherwise known as the Home Affordable Modification Program, is a government stimulus program that is designed to help struggling home owners remain in their homes. With the economic collapse and the housing markets down fall, many homeowners have been left with mortgage payments that they simply can Read more [...]
Frustrated homeowners across the country are walking away from their mortgages. With close to a quarter of all homeowners holding mortgages that are under water, meaning their home value is less than what they owe, many homeowners do not have any other options. The surprising statistic is the percentage of homeowners who are walking away that can actually afford to keep their home.
According to Luigi Zingales, a professor who conducts research at the University of Chicago's Booth School of Business Read more [...]
This week the FHA (Federal Housing Administration) is reporting that their serious mortgage delinquencies are falling. The rate dropped from 9.4% in January when 558,944 customers were seriously delinquent to 9.2% in February, decreasing the number of delinquent customers to 553,929. These numbers include those mortgages that are in foreclosure and bankruptcy. While the percentage change is small it is still seen as promising and is the lowest rate since last August.
The FHA has been under scrutiny Read more [...]
Amid the flurry of banking bailout talks and stock market worries, the National Association of Realtors released a report Wednesday showing a decrease in existing home sales nationally last month.
The Associated found that sales of previously owned homes, including single-family, townhomes, condominiums and co-ops, dropped a seasonally adjusted 2.2 percent to an annual rate of 4.91 million units from a rate of 5.02 million in July. August figures are also down 10.7 percent from the same time last Read more [...]
The U.S. housing market could be on its way to recovery within the next year, according to statements Monday from Treasury Secretary Henry Paulson, but he left the door open for future federal bailouts of key industry players if necessary.
"I believe that there is a reasonable chance that the biggest part of that housing correction can be behind us in a number of months. I'm not saying two or three months, but in months as opposed to years," Paulson said in a Washington D.C. press conference.
"I Read more [...]