Posts Tagged ‘fixed-rate mortgages’

As Mortgage Apps Edge Up, Rates Edge Down

February 6th, 2014 Comments off

A Mortgage Bankers Association (MBA) report says mortgage applications nudged up 0.4 percent for the week ending Jan. 31 from the previous week, while refinance mortgage activity remained at 62 percent of mortgage applications. While the refinance index grew 3% from the previous week, the purchase index declined 4% from one week earlier. In addition, as informs, the 30-year, fixed-rate mortgage (FRM) with a conforming loan balance fell to 4.47% from 4.52%, as the 30-year, FRM with a jumbo loan balance dropped to 4.42% from 4.47%. The Federal Housing Administration (FHA)-backed, 30-year FRM declined .06 percent to 4.12.

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Job Growth Spurs Mortgage Rates

December 5th, 2013 Comments off

On the heels of ADP’s report that private companies added 215,000 jobs in November, the 30-year, fixed-rate loan, the most popular product for homebuyers, rose to 4.46% from 4.29% last week, according to CNNMoney. The average for a 15-year fixed-rate mortgage (FRM), often used for refinancing higher interest mortgages, rose from 3.30 percent to 3.47 percent. Rates for the 30-year loan have ranged this year from 3.34 percent to 3.58 percent. In addition, MHProNews has learned auto sales have reached their highest mark since 2007, which likely also contributed to the mortgage rate increase. Says Keith Gumbinger of mortgage information site, “If the economy is gaining steam, even just a little, mortgage and other interest rates will firm right along with it.”

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Mortgage Apps Rise

December 5th, 2012 Comments off

According to Mortgage Bankers Association’s (MBA) data, refinancings accounted for 83 percent of new mortgage business, up from 81 percent the week before, as mortgage applications rose five percent, apparently with little concern for the fiscal cliff issue. Tying the all-time low, the average contract rate for a 30-year FHA-insured loan fell two basis points to 3.34 percent. Nationalmortgagenews tells MHProNews 30-year fixed rate mortgages (FRMs) with jumbo loan balances rose four points to 3.79 percent. Tracking the market since 1990, MBA’s survey covers 75 percent of the retail residential mortgage market.

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Mortgage Apps Fall

October 10th, 2012 Comments off

In the latest weekly report from the Mortgage Bankers Association (MBA), nationalmortgagenews says mortgage applications dropped 1.2 percent for the latest weekly reading Oct. 5 following a 16.6 percent spike for the previous week ending Sept. 28. Refi applications accounted for 83 percent of the apps, much the same as the previous week. Many mortgage analysts and lenders expect October to be a very strong month, perhaps stronger than Sept. As MHProNews as learned, MBA’s Mike Fratantoni said refi volumes are “still near three-year highs, and purchase applications increased to the highest level since June, with both conventional and government volumes increasing.” Average 30-year fixed-rate mortgages (FRMs) were going for 3.56 percent while 15-year FRMs fell to 2.88 percent, the lowest in the history of the survey.

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Affordable Modular Housing Program for Missouri

September 10th, 2012 Comments off

connecttristates reports a collaborative effort between the North East Community Action Corporation (NECAC) of Bowling Green, Missouri and Louisville, Kentucky-based Next Step will put low income people in modular homes in the NECAC area. The non-profit works with a variety of other non-profits, businesses, and governmental entities to deliver social service, community health, and affordable housing programs to the disadvantaged and elderly in northeast Missouri. Next Step builds and trains a network of non-profits nationwide to provide access to affordable factory-built housing, while educating home buyers and providing them with fair, fixed-rate mortgages and energy efficient homes for sustainable living. The new modular homes, ranging from 1,000 to 1,500 square feet with major appliances installed, will range in price from $40,000 to $50,000. MHProNews has learned there are no income guidelines for this particular program.

(Photo credit: Next Step)

Refis Jump Through HARP

August 8th, 2012 Comments off

Thirty-three percent of mortgages refinanced through Fannie Mae and Freddie Mac were closed through the Home Affordable Refinance Program (HARP), the most since the program began in March 2009. For the first six months of this year, Fannie Mae and Freddie Mac processed 422,969 loans through HARP, more than the total of 400,024 for all of 2011. According to the Federal Housing Finance Agency (FHFA), record-low mortgage rates, removal of the loan-to-value (LTV) ceiling for borrowers who refinance into FRMs (fixed rate mortgages), and reduced fees for some borrowers stimulated the increase in HARP volume. As HousingWire tells MHProNews, 1.4 million mortgages have been refinanced through HARP since it began.

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Interest Rates Keep Dropping—But is it Good?

July 31st, 2012 Comments off

MHProNews has learned from HousingWire 15 and 30-year fixed rate mortgages (FRMs) are continuing to drop to historic lows. While last year at this time a 30-year FRM was at 4.55, as of Thurs. July 26 it had dropped to 3.49% from 3.53% the previous week. While the 15-year FRM last year was at 3.66%, last week it had fallen to 2.83%. Surveying large banks, Bankrate says the 30-year FRM fell to 3.75% from 3.78%, while the 15-year FRM dropped to an even 3% from 3.04%. Meanwhile, analysts with Capital Economics are not convinced that low interest rates are necessarily good for the market. Capital’s Paul Diggle, noting there is no evidence the lower interest rates are spurring housing demand among mortgage dependent buyers, says, “The underlying improvement in sales activity remains heavily dependent on investors and cash buyers, who are attracted to housing in part because of low yields elsewhere.”

(Image credit: Bankrate)

Pres. Obama Signs FHA Bill to Raise Loan Limits

November 18th, 2011 Comments off

HousingWire reports a bill reinstalling higher conforming loan limits for the Federal Housing Administration (FHA) was singed into law Friday morning, Nov. 18, by President Obama. Both the House and Senate had passed the bill by over a two-thirds majority on Thursday. The FHA can now insure loans up to $729,750, an increase over the previous limit of $625,500. Congress had originally upped the limits in 2008 on FHA as well as Fannie Mae and Freddie Mac, but the ruling expired Oct. 1. The bill does not include Fannie and Freddie, much to the chagrin of Rep. John Campbell (R-CA) who says the GSEs continue to need government support. He said, “Even now, private lenders remain incredibly risk-averse, hesitating to provide long-term, fixed-rate mortgages to the vast majority of the market. Until Congress decides how to move forward with broad reform to fix our broken housing finance system, we should not dismantle the few remaining support systems that are preventing the housing industry from collapsing further.” Carole Galante, FHA Acting Commissioner, reminded Senators that government should be reducing the FHA market share.

(Graphic credit: FHA)

Refinancing Mortgage Applications Increase as Rates Fall

July 20th, 2011 Comments off

HousingWire says the Mortgage Bankers Association (MBA) reports its market composite index for the week ending July 15 saw mortgage applications climb 15.5 percent on a seasonally-adjusted basis from the previous week, as refinancing increased. On an unadjusted basis the index rose 44 percent. Of all mortgage applications, refinancing made up 70.1 percent, up nearly five percentage points from last week, the second highest level of the year. The average interest rate for a fixed 30-year mortgage dropped .01 percent to 4.54 percent from last week. The 15-year fixed mortgage rate dropped .02 percent from the previous week, according to the MBA. MBA Vice President of Research and Economics Michael Fratantoni said with mortgage rates at their lowest level of the year, borrowers are locking in fixed rate financing.

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