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Posts Tagged ‘30 year fixed rate’

Freddie Mac Borrowers Choose Quicker Pay-Off

November 13th, 2013 Comments off

A report from government-service enterprise (GSE) Freddie Mac indicates of all the borrowers refinancing Freddie loans in Q3 2013, 37 percent chose shorter loan terms, a five percent increase from the previous quarter and the highest level recorded since 1992. According to housingwire, 32 percent of HARP (Home Affordable Refinancing Program) borrowers refinanced into shorter-term loans; 40 percent of those not going through HARP also obtained mortgages with faster pay-off schedules. Only four percent chose to lengthen their loan term, as MHProNews has learned. Frank Nothaft, chief economist for Freddie Mac, said, “Mortgage rates on 15-year fixed-rate loans averaged nearly a full percentage point below 30-year loans during the third quarter, providing a financial incentive for homeowners to term shorten. HARP refinancers have an additional incentive to shorten as some origination fees are waived. By obtaining lower interest rates, borrowers will save approximately $6 billion in interest over the next 12 months, which they can put towards savings, paying down debt or supporting additional expenditures.”

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Rising Mortgage Rates=an Improved Economy?

September 12th, 2013 Comments off

Mortgage applications fell 13.5 percent from last week, and the 30-year fixed-rate mortgage rate rose from 4.51 percent to 4.57 percent this week, according to HousingWire. Mortgage Bankers Association (MBA) reports the Refinance Index fell 20 percent from the previous week, and 71 percent from the week of May 3. Noting refinance applications are the first to drop when mortgage rates rise, Trulia‘s Chief Economist Jed Kolko says, “Recent history shows that spiking mortgage rates take a big chomp out of refinancing immediately and smaller nibbles out of sales three months later. Longer term, the impact of rising rates is typically offset by stronger economic growth.” The National Association of Realtors (NAR) says pending home sales fell 1.3 percent in July, and that is partly seasonal, but levels are still high. As MHProNews has learned, this is the bottom line: Over the last 15 years, a rise in mortgage rates correlated with an improved economy.

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Battle Looms over Housing Finance Reform

July 30th, 2013 Comments off

As part of housing finance reform, the House Financial Service Committee passed a measure that will eventually eliminate Fannie Mae and Freddie Mac and pass the job of bundling most mortgages into marketable securities to private investors. Under the Protecting American Taxpayers and Homeowners (PATH) Act, the government would supervise the quality of securitized mortgages, and the Federal Housing Administration (FHA) would continue to back mortgages to low-income, first-time homebuyers. While critics argue the PATH Act will end the 30-year fixed-rate mortgage and drain the liquidity from the market, perhaps the private sector may be motivated to come up with its own version of the mortgage that has been so popular with consumers. Many housing interest groups—realtors, bankers, builders—would do their best to defeat it, as washingtonpost informs MHProNews. A bill in the Senate would also wind down Fannie and Freddie, but it would insure mortgage securities against catastrophic losses, providing private investors maintained some skin in the game. Although the Senate bill has not made it through committee yet, the debate is shaping up as a welcome initiative to limit the role of government in the mortgage-backed securities market.

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Mortgage Applications and Rates on the Rise

June 13th, 2013 Comments off

Mortgage applications rose five percent for the week ending June 7, a turnaround from the 11.5 percent drop the previous week, according to what the Mortgage Bankers Association (MBA) tells HousingWire. Although 11 percent lower than the two weeks prior, and 36 percent below the high point at the beginning of May, the refinance rate rose five percent for the week ending June 7. MHProNews has learned the refinance portion of mortgage activity inched up one point to 69 percent from a week earlier. In addition, the average 30-year fixed rate mortgage (FRM) backed by the Federal Housing Authority (FHA) rose to 3.81 percent, the highest rate since April 2012.

(Image credit: HousingWire)

Thirty-year Mortgage near Record Low

May 3rd, 2013 Comments off

For the fifth consecutive week, according to what nationalmortgagenews tells MHProNews, the average 30-year fixed-rate mortgage (FRM) has dropped to 3.35 percent, and is now closing in on the record low of 3.31 percent set the week of Nov. 21, 2012. The fixed-rate 15-year mortgage set a new record low at 2.56 percent for the week ending May 2. A one-year average Treasury adjustable-rate mortgage (ARM) fell three basis points to 2.62%. One year ago weekly rate averages were 3.84% for a 30-year FRM and 3.07% for a 15-year FRM. A five-year Treasury hybrid was 2.85 percent, and a one-year Treasury ARM was 2.7 percent.

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Mortgage Rates Lower than Last Year

February 8th, 2013 Comments off

MHProNews has learned from nationalmortgagenews the average rate for a 30-year fixed-rate mortgage (FRM) according to Freddie Mac’s weekly survey remained steady at 3.53%, while a 15-year FRM dropped four basis points to 2.77%. Compared to last Feb. at this time, a 30- year average FRM is 34 basis points lower and a 15-year FRM is 39 basis points lower.

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Mortgage Apps at Highest Level in 20 Months

January 16th, 2013 Comments off

NationalMortgageNews reports on a seasonally adjusted basis, purchase applications rose 13 percent over the week ending Jan. 4, but are up 47 percent on an unadjusted basis, their highest level since April 2011, according to the Mortgage Bankers Association (MBA). Noting home sales burgeoning in Calif. in Dec. because of concerns over the fiscal cliff, DataQuick says home sales in Southern Calif. are at their highest level in three years. As MHProNews understands, Calif. once had one of the higher foreclosure rates in the nation. The average contract interest rate for a 30-year fixed rate mortgage (FRM) with conforming loan balances stood at 3.61 percent, while the average for an FHA-insured loan of 30 years rose four basis points to 3.39 percent. The MBA also says a jumbo 30-year FRM rose ten basis points to 3.88 percent, while the 15-year jumbo remained steady at 2.88 percent.

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Interest is Up, so are Apps

January 10th, 2013 Comments off

According to originationnews, the Mortgage Bankers Association (MBA) says despite the interest rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balances having increased nine basis points to 3.61%, mortgage apps rose 11.7 percent for the week ending Jan. 4. This interest rate is the highest in two months. The average contract rate for a 30-year FHA-insured loan moved up one basis point to 3.35 percent. MHProNews has been informed while the Refinance Index rose by 12 percent, the seasonally-adjusted Purchase Index increased ten percent.

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Refis Fall, Interest Rate Remains Low

January 4th, 2013 Comments off

As originationnews reports, the Mortgage Bankers Association (MBA) says refinancings the last two weeks ending Dec. 28 were at their lowest point since April, as refis dropped 21.6 percent on a seasonally-adjusted basis. The average contract interest rate for a 30-year fixed rate mortgage (FRM) increased one basis point to 3.52 percent from the week ending Dec. 21 to the week ending Dec. 28. As MHProNews has learned, the 30-year FHA-insured interest rate dropped a point to 3.34 percent. For jumbo 30-year FRMs, the average contract rate fell two points to 3.75; for 15-year FRMs it rose two points to 2.86 percent.

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Lowest Interest Rate in 65 Years

December 28th, 2012 Comments off

According to Freddie Mac’s Primary Mortgage Market Survey, HousingWire reports interest rates will finish out the year at near record lows. For the week ending Dec. 27, the average 30-year fixed-rate mortgage (FRM) hit 3.35 percent, down from 3.37 percent the previous week, and well below 3.95 percent from a year ago. Frank Nothaft, Freddie Mac chief economist and V.P., says, “The 30-year fixed-rate mortgage averaged 3.66% for 2012, the lowest annual average in at least 65 years. Unchanged from last week was the 15-year FRM at 2.65 percent, but well below 3.24 percent a year ago. As MHProNews has learned, with the 30-year FRM nearly .06 points below the Jan 1, 2012 rate, a borrower could save almost $98,600 over the life of a $200,000 mortgage.

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