Posts Tagged ‘basis points’

30-Year and 15-Year Mortgages Slightly Above One Year Ago

December 27th, 2013 Comments off

According to the average weekly rate for a 30-year mortgage is two basis points under 4.5 percent, making it just above one percent higher than one year ago. For a 15 year mortgage, the average rate is two basis points above 3.5 percent, making the mortgage rate just under one percent higher than a year ago. A five-year Treasury-indexed adjustable-rate-mortgage (ARM) is 30 basis points higher than one year ago, and a one-year Treasury ARM is exactly where it was a year ago, as Freddie Mac informs MHProNews.

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Thirty-year FRM rises to 4.44 Percent

November 13th, 2013 Comments off

According to Zillow Mortgage Marketplace, the 30-year fixed rate mortgage (FRM) rose 17 basis points in the week ending Nov. 12 to 4.44 percent. The rate moved up due to the government’s strong jobs numbers and better-than-expected growth in the gross domestic product (GDP). The Mortgage Bankers Association (MBA) reports refinance applications fell two percent on the week and purchase applications dropped one percent on a seasonally adjusted basis. For the same week one year ago, purchase apps were down six percent on an unadjusted basis. As nationalmortgagenews informs MHProNews, refis comprised 66 percent of the loan applications during the week. Federal Housing Administration (FHA) insured loans increased nine points to an average contract rate for the week of 4.16 percent. For the 30-year conforming FRM the average contract rate was 4.44 percent, up 12 basis points from the prior week.

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Proposal would Replace Government-Sponsored Enterprises Fannie and Freddie

June 20th, 2013 Comments off

A plan to replace Fannie Mae and Freddie Mac with a Market Access Fund (MAF) has been proposed by two U. S. senators as well as by several analytic firms and think tanks. Senators Bob Corker (R-Tenn.) and Mark Warner (D-Vir.) say their reform bill would create the MAF from basis points added to mortgage-backed securities (MBS). A joint proposal by Moody Analytics, Urban Institute and Milken Institute states a six basis point MBS fee would eventually provide $5 billion in annual revenue, sufficient for a stable MAF funding source. Since it will be difficult to back affordable housing initiatives that have been the province of the GSEs, a percentage of the MBS fees would establish a National Housing Trust Fund to maintain and create sufficient inventory of adequate rental housing for extremely low-income families. In addition, as MHProNews has learned from nationalmortgagenews, the fees would fund research to make certain all sectors are being served by the new arrangement.

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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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HUD Reviewing Qualified Mortgage Rule for FHA

April 29th, 2013 Comments off

Reviewing the qualified mortgage (QM) rule handed down by the Consumer Financial Protection Bureau (CFPB), the Dept. of Housing and Urban Development (HUD), in trying to broaden access to Federal Housing Administration (FHA)-insured loans, may modify the safe harbor provision, as nationalmortgagenews informs MHProNews. Any interest rate that exceeds the average prime rate plus 150 basis points falls outside the QM safe harbor line, which opens the door for possible litigation against the lender if the borrower defaults. FHA has announced it will issue its own QM rule as allowed under Dodd-Frank.

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Mortgage Default Rate Falls

April 16th, 2013 Comments off

NationalMortgageNews informs MHProNews the composite index default rate for first time mortgages gained five basis points from February, 2013 and a 46 basis point improvement from March a year ago, according to S&P/Experian Consumer Credit Default Indexes. The composite index for first mortgage loans ended March at 1.41%, compared to 1.48% in Feb. and 1.88% a year ago March. New York experienced a rise in the default rate, up 38 basis points Feb. to March to 1.79%. Although Miami saw a 28 point increase month-over-month, it continues to have the highest default rate in the nation at 2.93%.

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FHA Prepares Own QM Ticket

March 8th, 2013 Comments off

The American Banker informs MHProNews the Federal Housing Administration (FHA) is issuing its own QM rule because the Consumer Financial Protection Bureau (CFPB)’s may conflict with the FHA’s Single-Family Program. HUD spokesman Brian Sullivan states FHA has the authority under Dodd-Frank to create its own ability-to-repay rule, and will be issuing it soon. Brian Collins of American Banker says, “FHA lenders are already concerned about the CFPB QM rule because of certain changes to FHA mortgage insurance policies that will be going into effect soon. On April 1, 2013 FHA will raise its annual premium by ten basis points. On a standard FHA loan, new borrowers will pay a 135-basis-point annual premium and a 175-basis-point upfront fee.”

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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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