Posts Tagged ‘Interest Rates’

USDA Offering Refinancing to Homeowners

June 12th, 2012 Comments off

ModularHomeCoach reports the United States Department of Agriculture (USDA) has instituted a program through its Rural Development Housing division to lower interest rates and monthly payments for thousands of borrowers who have loans made or backed by the USDA. The pilot program, designed to improve the housing market, is being tested in 19 states stretching from Rhode Island to California to the Midwest and on to Georgia and North Carolina. Tammye Trevino, USDA administrator says, “USDA will work with industry stakeholders, citizens and other federal officials to build upon the administration’s goals to help responsible homeowners refinance loans stay in their homes and shore up the nation’s housing market.” notes the article expresses hope the program is not just another government drain that takes money away from new home construction.

(Photo credit: ModularHomeCoach/USDA Administrator Tammye Trevino)

Single-family Lending Soars

May 30th, 2012 Comments off

OriginationNews tells according to the Federal Reserve, single-family loans lending by the 25 largest banks has spiked this quarter, increasing $11.2 billion, at an annualized rate of 56 percent, to a non-seasonally-adjusted total of $4 trillion for the week ending May 9. Home mortgage lending was just below 40 percent, while commercial and industrial loans in the second quarter accounted for 62 percent of total loan growth. Brian Klock, an analyst at Keefe, Bruyette & Woods, says, “The increase in volumes has coincided with a drop in interest rates, so it would stand to reason there is more refinancing volume than purchase volume.”

(Image credit: ForeclosureListing)

Clinton’s Economic Fix

January 21st, 2012 Comments off

MHProNews has learned from NationalMortgageNews, former President Bill Clinton’s plan to resolve the housing crisis is for underwater borrowers to receive lowered principal and interest rates that match current valuations. Once the market recovers and the house is sold, the bank would get a portion of the sale. This would keep bad debts off the bank’s books. Speaking at the National Retail Federation’s Annual Convention and Expo, Clinton says our economic crisis has become an identity crisis: “It has gone to the core of people’s sense of who they are, what they are worth and how they get through life with meaning.” He says history tells us over the past 500 years it has taken five to ten years for a country to recover from a financial disaster; but crises related to privately-held mortgage debt have required closer to ten years to recover. “If you want America to return to a full-employment economy, you have to accelerate the resolution of the mortgage crisis,” he says.

(Photo credit: Wikipedia)

Solution to Foreclosed Properties?

January 10th, 2012 2 comments

CNBC tells the Obama administration’s plan to speed-up the housing recovery process may be to sell government-owned foreclosed real estate in bulk to investors who will then rent the properties. Since banks may be reluctant to finance the purchases, the government may offer a subsidy to the investors by guaranteeing a portion of the loans. This in turn will encourage lenders to offer interest rates low enough that investors can turn a profit. Because of financial risks the government will assume, regulators will likely choose investors who meet certain criteria and have demonstrated their ability in the real estate arena, resulting in a lock for established investors. The article cautions that it may also be a way to reward those who may donate to political campaigns.

(Photo credit: Wikipedia)

Looking Back: Article Portrays a Different World

December 28th, 2011 Comments off

Manufactured Home in Black and WhiteAn October 30, 1981 article published by Knight-Ridder which came up on a Google search today says boldly that Manufactured Housing may be the only way consumers can afford the American Dream. The reason: sky-high interest rates. The article professes that “if builder’s can lower construction costs by 50 percent, it would be the same effect as dropping mortgage interest rates from 17 to 8.5 percent.” High construction costs brought in part by high interest rates likely brought the closer look at more efficient manufacturing. Currently interest rates are historically low, but land costs appear to be rising in many areas where manufactured housing has been strong. The article sites Commerce Department statistics showing 221,000 manufactured homes were produced in 1980 compared to 531,000 site-built homes. That situation, an adjacent article suggests, was accompanied by an increased availability of loans for manufactured housing.

(Image Credit: Eric Miller)

New Home Sales Up

December 23rd, 2011 Comments off

real estate sign, Dec 23, 2011, Eric Miller learned from CNNMoney that new home sales rose in November. The report, released by the U.S. Census Friday, indicates the annualized rate of 315,000 is up 1.6 percent compared with the revised October rate of 310,000 and 9.8 percent higher than November 2010. It all may be adding up to a rebound of sorts for the housing industry. The Census report follows a rise in sales of existing homes of 12 percent year-over-year; a 21 percent spike in homebuilding and record low mortgage rates. Inventory is also lower, which could aid the market for manufactured homes.

(Image Credit: Eric Miller)

Freddie Mac Reports Long-Term Mortgage Rates Rise

December 2nd, 2010 Comments off

Freddie Mac released the results of its Primary Mortgage Market Survey Thursday, which found that the both fixed- and shorter-term mortgage rates rose this week. This was the third week in a row where fixed-rate mortgage rates were up. The 30-year fixed-rate mortgage (FRM) averaged 4.46 percent with an average 0.8 point for the week ending December 2, 2010, up from last week when it averaged 4.40 percent. Last year at this time, the 30-year FRM averaged 4.71 percent. The 15-year FRM this week averaged 3.81 percent with an average 0.7 point, up from last week when it averaged 3.77 percent. A year ago at this time, the 15-year FRM averaged 4.27 percent.