Posts Tagged ‘mortgage rates’

Rising Home Prices Partially Negate Low Mortgage Rates

May 2nd, 2016 Comments off

mortgage app   texaslendingtoday creditJacksonville, Fla.-based Black Knight Financial Services tells MHProNews rising home prices across the country are offsetting the advantage of low mortgage rates.

The fall of interest rates 35 basis points since Jan. 1, 2016 would translate to a savings of approximately $44 dollars a month. “While borrowers might expect that $44 per month savings home price appreciation, which Black Knight calculated at an annual rate of 5.3% in February, it would shrink that savings to just $18 per month nationwide,” reports nationalmortgagenews.

Higher home prices have totally negated savings from low interest rates in Washington, Colorado and Oregon.

Ben Graboske of Black Knight said despite rising prices, the mortgage on a median-priced home is still better than it was in Dec. “If rates hadn’t dropped over the past four months, it would cost an additional $28 to buy the median-priced home today as compared to December 2015,” he noted.

The drop in mortgage rates has added 2.3 million borrowers to the refinanceable population year to date, totaling 7.5 million across the nation.

Additionally, Black Knight reports the delinquency rate fell 8.37 percent from the previous month to 4.08 percent, placing the figure squarely below the rate from 2000 to 2005. The report noted the serious delinquency and the 90-day delinquency rates are still high.

Mississippi had the highest percentage of noncurrent loans while Arkansas had the lowest. ##

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matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Affordable Homes becoming more Scarce

April 25th, 2016 Comments off

home sales rising  housing wire com  creditFirst-time home buyers accounted for less than a third of all home purchases last year, the lowest rate in almost 30 years, as The Wall Street Journal informs therealdeal. Only 25 percent of U. S. counties that have over 100,000 people saw a decrease in affordability of homes since last year.

Despite low unemployment and record-low mortgage rates, the housing market has not kept pace as home prices have risen more than wages. In the Dallas area, historically an affordable market, since 2014 there has been 13 months of consecutive year-over-year price gains above eight percent—nearly twice the national average of 4.7 percent.

One home buyer said buying a home was a very competitive process, requiring her to pay $6,000 above the asking price and an expiration date on the offer. MHProNews understands she compared the transaction to tackling it like a project manager. ##

(Image credit: housingwire–affordable home prices rising)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Inventory of Starter Homes Continues Diminished

March 10th, 2016 Comments off

housing slides  cnnmoney  creditYear-over-year as of Jan., 2016, the number of homes priced below $100,000 fell by 8.6 percent, as the less expensive homes got snapped up quickly, while the homes priced over $1 million grew by 15 percent, according to the National Association of Home Builders (NAHB), as mpamag informs MHProNews. The inventory of homes priced in between the two extremes decline the higher the price, as first-time home buyers are taking advantage of the continuing low mortgage rates.

A Phoenix real estate agent said a buyer looking at a $750,000 home had 45 to look at, but someone who wanted a $400,000 home only had three or four to check out. The NAHB noted the size of the average new home in 2015 increased to 2,720 square feet, as builders were reluctant to enter the starter home market.

As the more expensive home market stalls, said Barclay’s analyst Stephen Kim, builders will begin constructing lower-priced homes. ##

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Article submitted by Matthew J. Silver to Daily Business News-MHProNews.

Homes Selling Quicker than Six Months Ago

August 24th, 2015 Comments off

sold home  mattheafeyAccording to themortgagereports, the National Association of Realtors (NAR) says rising rents, a favorable lending environment and low mortgage rates are driving the market for homes nationwide. In January, the median time for homes to be on the market was 69 days—half the homes sold in less than 69 days, the other half took more time to sell. In July, that number dropped to 42 days, which amounts to a 40 percent reduction of time being listed with MLS.

Although median days on the market is not a foolproof housing metric, it can be instructive. However, homeowners may take risks if they perceive the economy is performing well, and jump into buying a home. But it could also mean sellers are anxious about finding a buyer, and may be willing to accept a lower than desired price, which can affect the days on the market.

The third reason for quicker home sales could be the rise in rents. In some markets, MHProNews understands a house payment may be less than monthly rent—it’s certainly true across the board in the manufactured home market—which can be an encouragement to take assume risk.

However, the current 4.8 month supply of homes for sale is said to favor sellers over buyers in negotiations, given that low supply should strengthen demand and thus increase the price. If job growth and wages increase, and the economy improves (notwithstanding the downturn in the stock market), home sales will likely rise regardless. ##

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matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.


Homeownership still Less Expensive than Renting

May 19th, 2015 Comments off

home buying   firstbanktrust  creditAccording to a report by Trulia, on a national level homeownership is 35 percent cheaper that renting, up from 33 percent last year. While home prices have risen a little more than rents, lower mortgage rates provide a financial advantage to home buyers.

The top five markets where buying provides the least advantage over renting are Honolulu, San Jose, CA, Lancaster, Penn., Sacramento, CA and San Francisco. In fact, six of the ten markets where buying has the least edge over renting are in CA, reports CNNMoney.

In general, there is more financial advantage to buying versus renting in the South. In Sarasota, Florida it is 55 percent less expensive to buy than rent. However, if mortgage rates begin to rise, renting may have a financial advantage over buying, as MHProNews understands.

Ralph McLaughlin, housing economist at Trulia, notes that a down payment may remain the biggest obstacle to homebuyers. He says, “Even though we are a few years out of the recession, it can still take quite a while to save up for a down payment, especially when rents are high.

It should be noted that buying a manufactured home has a distinct advantage over renting when weighing finances. ##

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matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Mortgage Rate Increase highest in Ten Months

September 18th, 2014 Comments off

mortgage claculator bankrate ceditIn the largest increase since November of 2013, the 30-year fixed mortgage rate rose 14 basis points from one week ago to 4.19 percent, although it peaked on Sunday at 4.30 percent and then fell, according to Erin Lantz of Zillow says the rates hit a five-month high last week in anticipation of the possibility that the Federal Reserve might raise the interest rate this week, but as MHProNews noted earlier, the Fed is holding the line on interest rates until at least next summer. The rate for a 15-year fixed home loan currently sits at 3.26 percent. ##

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Best Mortgage Rates available where Jobs are Scarcest

August 12th, 2014 Comments off

mortgage    andyenstallblog  creditThe least expensive mortgage in the country during July was in Rhode Island where borrowers paid just 3.4 percent, 0.35 percent below the national average. The highest rate in the nation was 4.1 percent in Nebraska, as CNNMoney informs MHProNews. Over the 30 years of the loan that 0.7 percent difference translates into $28,000 more on a $200,000 mortgage. While mortgage rates typically move as  U. S. bond yields change, another factor is in areas where fewer people have jobs, lenders have to lower rates to attract buyers; likewise, in areas where the economy is stronger, rates will tend to be higher. ##

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Delinquent Residential Mortgages on the Decline

August 11th, 2014 Comments off

mortgage  moneycontrol credit glasses calc paperThe Mortgage Bankers Association (MBA) reports residential mortgage delinquencies have fallen to six percent, according to their National Delinquency Survey, the lowest level since Q4 of 2007, and the fifth consecutive quarter of decline. Mike Fratantoni, MBA’s Chief Economist, informs that strong job growth and continued increases in home prices in many markets have contributed to these improvements in mortgage performance. According to, loans in the foreclosure process dropped 16 basis points from the first quarter to the second quarter, down 84 basis points from a year ago, to 2.49 percent, reducing the foreclosure inventory rate to its lowest level since Q1 2008. Loans 90 days or more past due, or in the process of foreclosure, dropped 24 basis points from the first quarter, and 108 basis points from one year ago to 4.8 percent. As many as three-fourths of these seriously delinquent loans were originated in 2007 or earlier. ##

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Mortgage Rates Fall to Nearly Four Percent

July 9th, 2014 Comments off

Once the Federal Reserve began tapering its purchase of Treasury bonds last December, analysts expected mortgage rates to begin rising, but as CNNMoney reports, they have fallen to 4.12 percent for a 30-year fixed-rate loan this week, the lowest since Oct. of 2013. The rate on 15-year loans remained unchanged at 3.22 percent, according to Freddie Mac. At four percent, payments on a $200,000 home would be $955 a month; at five percent the cost would be $1,073 monthly, and at six percent, $1,200 a month, MHProNews has learned. ##

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Home Cash Buyers Big in Q1; Housing Market a “Crapshoot”

July 7th, 2014 Comments off

Christine Romans of CNNMoney reports almost half of residential real estate deals in the first quarter of 2014 were “swaggering cash buyers, investors from overseas, private equity funds, wealthy individuals,” who comprised a record high 42.7 percent of the purchases. First-time homebuyers were not a significant part of the housing recovery, but with mortgage rates falling again—4.14 percent for the 30-year fixed rate, the lowest rate since October of last year, and 3.25 percent for the 15-year fixed rate–now is a good time to buy, but only if you can afford it. She says the White House is encouraging governmental agencies to make it easier for qualified buyers to obtain loans to buy homes.

Meanwhile, Karl “Chip” Case, co-creator of the S&P/Case-Shiller home price index, calls the housing market a “crapshoot.” He says, “You’ve got much more negative vibrations in the housing surveys about homeownership than we ever had before.” He says the key indicator to watch is housing starts, as MHProNews has learned, and each time in the past it has fallen below a million a month (annualized) it has come right back—except for the recent Great Recession. It fell below 500,000 in 2009, a rate that many thought could never happen, and the return has been very slow. He says the housing market is more segmented, that some areas will see better results than others. “The Chinese are coming over here with millions and billions of dollars, and they want to spend it on assets that tend to hold their value. And at least the theory is that housing does. But it is far from what it was in 2004,” Case adds. ##

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