Mortgage rates for 30-year U.S. loans fell to a three-month low after a partial government shutdown pushed down yields for the Treasuries that guide consumer debt.
The average rate for a 30-year fixed mortgage dropped to 4.22 percent, the lowest since June 20, from 4.32 percent, Freddie Mac said in a statement today. The average 15-year rate decreased to 3.29 percent from 3.37 percent, according to the McLean, Virginia-based company. While the shutdown may have a “minimal” impact on mortgage rates immediately, a potential U.S. debt default and market expectations for when the Federal Reserve may begin tapering the pace of its monthly bond purchases will be more consequential, said Jed Kolko, chief economist for Trulia Inc. (TRLA), a San Francisco-based real estate website. “One effect of the shutdown is, if it lasts, it would reduce purchases among consumers because federal wages aren’t being paid,” slowing economic activity and pushing rates lower, Kolko said in an interview yesterday. The debate over raising the country’s debt limit “is a different story. In the unlikely case that the government defaults on its debt, it would probably cause financial panic and cause interest rates to spike.” Treasuries gained after the U.S. government began its shutdown on Oct. 1 as investors sought refuge from uncertainty. Ten-year yields decreased to almost a seven-week low yesterday, the biggest slide in two weeks. Debate over the shutdown may bleed into discussions about raising the debt ceiling, a bigger concern for the U.S. economy. Treasury Secretary Jacob J. Lew said this week that the U.S. has begun using the last measures available to avoid breaching the limit on Oct. 17. May Low The average rate for a 30-year loan surged to a two-year high of 4.58 percent in August from a near-record low of 3.35 percent in early May. Mortgage applications for home purchases fell 5.6 percent in the week ended Sept. 27, the most in almost two months, the Mortgage Bankers Association said yesterday. After Congress failed to pass a budget, borrowers in the process of getting loans could be delayed as lenders are blocked from verifying Social Security numbers and accessing Internal Revenue Service tax transcripts. The process also may be longer for borrowers seeking mortgages backed by the Federal Housing Administration because its full-time staff is now less than a tenth of its normal size and the U.S. Department of Agriculture, which backs mortgages in rural areas, won’t take on new business during the shutdown. To contact the reporter on this story: Elizabeth Dexheimer in New York at edexheimer@bloomberg.net Source: http://www.bloomberg.com/news/2013-10-03/u-s-mortgage-rates-drop-with-30-year-at-three-month-low.html Mortgage rates showed little movement this week as the industry awaits the resolution of the federal government shutdown.
The shutdown has prevented many of the key economic indicators that influence rates from being released. For example, the federal jobs report was due out last Friday but the shutdown kept the Bureau of Labor Statistics from releasing the data. Typically, that type of data provides guidance about where the economy is heading. Without that information, rates were in a holding pattern, according to the latest data released Thursday by Freddie Mac. The 30-year fixed-rate average experienced a slight uptick, rising to 4.23 percent with an average 0.7 point. It was up from 4.22 percent a week ago and 3.39 percent a year ago. The 30-year fixed rate had fallen for three weeks in a row. The 15-year fixed-rate average rose to 3.31 percent with an average 0.7 point. It was 3.29 percent a week ago and 2.7 percent a year ago. Hybrid adjustable rate mortgages also had slight increases. The five-year ARM averaged 3.05 percent with an average 0.4 point. It was 3.03 a week ago and 2.73 percent a year ago. The one-year ARM averaged 2.64 percent with an average 0.4 point. It was 2.63 percent a week ago. “Mortgage rates were little changed amid the federal debt impasse in Washington, D.C. and a light week of economic data releases,” Frank E. Nothaft, Freddie Mac vice president and chief economist, said in a statement. “Of the few releases, the private sector added an estimated 166,000 jobs in September, which were fewer than the market consensus and followed a downward revision of 17,000 workers in August, according to the ADP Research Institute. The Institute for Supply Management reported a greater slowing in growth in the nonmanufacturing industry in September than the market consensus forecast.” After dipping last week, mortgage applications increased slightly, according to the latest data from the Mortgage Bankers Association. The Market Composite Index, a measure of total loan application volume, rose 1.3 percent. The Refinance index grew 3 percent, while the Purchase Index dropped 1 percent. The refinance share of mortgage activity climbed to 64 percent, a month after sinking to 57 percent, its lowest level since April 2010. Refinances had accounted for more than 80 percent of applications earlier this year. Source: http://www.washingtonpost.com/blogs/where-we-live/wp/2013/10/10/mortgage-rates-hold-steady-amid-federal-government-shutdown/ Follow me: Rates on the most popular types of mortgages declined again according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by eleven basis points (0.11 percent) to 4.38 percent. Conforming 5/1 Hybrid ARM rates decreased by only four basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average 3.27 percent.
"Mortgage rates have slipped to levels not seen in a few months," said Keith Gumbinger, vice president of HSH.com. "While this is great news for mortgage shoppers, what's not great is that it comes as the government has ground to a halt, making it hard for mortgage lenders to get verification of tax returns or even Social Security numbers. This is likely to slow the loan approval process." Borrowers involved in the mortgage process should discuss timelines and expectations with their lender and inquire about longer commitments, longer rate locks and extension policies for each. "If the government shutdown is only for a few days, it should be minimally disruptive," adds Gumbinger. "Most loans are closed toward the end of the month, so a few days delay in getting documentation shouldn't derail too many deals. However, if it persists for several weeks, disruptions and backlogs are likely to multiply." Below is the average mortgage rates and points for conforming residential mortgages for the week ending October 1 according to HSH.com: Conforming 30-year fixed-rate mortgage Average rate: 4.38 percent Average points: 0.17 Conforming 5/1-year adjustable-rate mortgage Average rate: 3.27 percent Average points: 0.12 Average mortgage rates and points for conforming residential mortgages for the previous week ending September 24 were, according to HSH.com: Conforming 30-year fixed-rate mortgage Average Rate: 4.49 percent Average Points: 0.20 Conforming 5/1-year adjustable-rate mortgage Average Rate: 3.31 percent Average Points: 0.12 Methodology The Weekly Mortgage Rates Radar reports the average rates and points offered on conforming 30-year fixed-rate mortgages and conforming 5/1 ARMs. The weekly mortgage rate survey covers a large sample of mortgage lenders and is conducted over a Wednesday-to-Tuesday cycle, with data released every Wednesday. HSH.com’s survey helps consumers find the best rates on home loans in changing market conditions. Unlike mortgage rate surveys that report average rates only, the Weekly Mortgage Rates Radar’s inclusion of both average rates and average points provides a more accurate view of mortgage terms currently offered by lenders. Every week, HSH.com conducts a survey of mortgage rate data for a wide range of consumer mortgage products including ARMs, FHA-backed and jumbo mortgages, as well as home equity loans and lines of credit from hundreds of direct lenders in the U.S. For information on additional loan products, visit HSH.com. About HSH.com HSH.com is a trusted source of mortgage data, trends, news and analysis. Since 1979, HSH’s market research and commentary has helped homeowners, buyers and sellers make smart financial choices and save money on mortgage and home equity products. HSH.com, of Riverdale, N.J., is owned and operated by QuinStreet, Inc. (NASDAQ: QNST), one of the largest Internet marketing and media companies in the world. QuinStreet is committed to providing consumers and businesses with the information they need to research, find and select the products, services and brands that best meet their needs. The company is a leader in ethical marketing practices. For more information, please visit QuinStreet.com. Source: http://www.newsday.com/business/hsh-com-weekly-mortgage-rates-radar-mortgage-rates-fall-to-early-summer-levels-1.6180667 Great articles can be found at Jim Clooney WS The 30-year fixed mortgage rate on Zillow® Mortgage Marketplace is currently 4.08 percent, down 9 basis points from 4.17 percent at this time last week. The 30-year fixed mortgage rates have been steadily declining since last week, dropping to the current rate this morning. In just three weeks, 30-year fixed mortgage rates have dropped a total of 41 basis points.
"Mortgage rates hit 13-week lows as markets adjusted to the slower wind-down of the Federal Reserve's stimulus program than what was expected," said Erin Lantz, director of mortgages at Zillow. "This coming week, we do not expect the government shutdown to have any significant impact on mortgage rates. Any rise or fall in rates will be due to unexpected news out of Friday's job report." Zillow's real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgage Marketplace site, and reflect the most recent changes in the market. These are not marketing rates, or a weekly survey. The rate for a 15-year fixed home loan is currently 3.12 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 2.90 percent. Source: https://globenewswire.com/news-release/2013/10/01/577339/10050776/en/30-Year-Fixed-Mortgage-Rates-Continue-Downward-Spiral-Current-Rate-is-4-08-According-to-Zillow-Mortgage-Rate-Ticker.html Average mortgage rates are falling again, a trend that could counteract signs of lower home sales in the next few months.
The average 30-year fixed-rate home loan rate dropped to 4.32% this week, according to data released by Freddie Mac on Thursday. That's down from 4.5% in last week's Freddie Mac survey, and below a peak of 4.58% last month. The average 15-year fixed rate fell to 3.37% from 3.54% a week ago, Freddie Mac reported. Interest rates have fallen since the Federal Reserve said Sept. 18 it would continue its $85 billion in monthly bond buying, which is aimed at keeping rates down for consumers and businesses. Before that announcement, rates had risen more than a full percentage point since early May when markets began speculating on the Fed easing its bond purchases this fall. Rates are likely to fall below 4%, said Chris Flanagan, head of mortgage research for Bank of America Merrill Lynch. The higher interest rates in effect over the summer are believed to helped home sales, spurring buyers to close deals and beat further rate increases. August's existing home sales were the highest in six and a half years, the National Realtors Association says. But newer data is mixed on whether those higher rates are holding some buyers back. The National Association of Realtors reported Thursday that contracts to buy and sell existing homes dropped 1.6% in August, the third straight monthly decline in its pending home sales index. The index is designed as an indicator of future sales, which are typically close a month or two after contracts are signed. But the Mortgage Bankers Association weekly reports have noted a pickup in new applications for loans tied to home sales, which the trade group reports separately from refinancing loans. The Mortgage Bankers Association on Wednesday reported a 7% increase in purchase-money applications last week, following a 3% jump the week before. Source: http://www.usatoday.com/story/money/business/2013/09/26/pending-home-sales-mortgage-rates/2867341/ WASHINGTON — Could the end of the refinancing boom be stimulating slightly more favorable mortgage terms for homebuyers?
The latest comprehensive study of activity in the market suggests the answer could be yes. Ellie Mae, a mortgage-technology firm based in Pleasanton, Calif., conducts a widely regarded survey involving a massive, nationally representative sample of loans closed each month. Its recently released August findings point to a gradual easing on credit scores for borrowers. Consider these hard numbers provided by Ellie Mae CEO Jonathan Corr: • Last month, 30 percent of all successful applicants for home mortgages had FICO credit scores below 700. A year ago, by contrast, just 15 percent had scores below the 700 mark. That doubling in just 12 months is significant and tells prospective buyers: Just because you don’t have stellar scores, you can still be approved if your application shows compensating strengths — steady income, solid recent payment performance on credit accounts, moderate household-debt loads, and adequate financial reserves in case you run into a rough patch. (FICO scores run from 300 to 850; higher scores signify a lower risk of default for the lender.) • Average FICO scores are down across the board. Conventional Fannie Mae-Freddie Mac scores for approved applicants dropped a point from July to August to 758. That’s still high in historical terms but down from 764 last November. The biggest drops in scores have been on Fannie-Freddie refinancings, where recent interest-rate jumps have scared away applicants. Approved borrowers in August had average scores of 737 compared with 746 in July. Corr said in an interview that many lenders are seeing refi applications decline sharply, and this may be pushing them to be more flexible and competitive on loans for home purchases. One example of a major lender loosening up a little: Wells Fargo has relaxed its minimum down-payment requirement on so-called jumbo mortgages with starting balances above the Fannie-Freddie conventional limit of $417,000. Rather than its previous minimum of 20 percent down, Wells is now accepting 15 percent on primary residences “in most markets around the country,” according to spokesman Tom Goyda. There is no mortgage-insurance requirement, but applicants must have a minimum 740 FICO score, no higher than a 35 percent total household debt-to-income ratio and 12 months of financial reserves available to them. Essentially, Wells Fargo is saying: If you are a strong candidate on most criteria, we’ll give you the benefit of the doubt and lower the amount of cash you need to bring to the table. But not everybody in the mortgage market is seeing an easing trend. The Mortgage Bankers Association just reported a slight tightening of lending conditions in its survey. The reason: Fewer lenders are offering specialized products such as interest-only mortgages and loans with terms extending beyond 30 years. Both of these features render loans ineligible for the federal “qualified mortgage” (QM) designation that is scheduled to go into effect nationwide in January. Other banned types: Loans with negative amortization, balloon payments and adjustable-rate mortgages (ARMs) underwritten at teaser interest rates. Fannie Mae and Freddie Mac have announced that they will not invest in or guarantee loans with non-QM features in 2014. Other lenders question whether, with the forthcoming tougher standards on debt-to-income ratios on QM loans, anyone can seriously talk about easing. “I don’t see any easing in lending,” said Bruce Calabrese, president of Equitable Mortgage in Columbus, Ohio. He cited FHA’s increases in mortgage-insurance premiums and Fannie Mae’s recent cancellation of its 3 percent minimum down-payment program as troubling signs for borrowers. Bottom line here: Credit-score requirements are definitely more flexible than a year ago, and jumbo loans might require less cash out of pocket. But we’re still in a highly restrictive market compared with seven or eight years ago near the peak of the boom. Source: http://seattletimes.com/html/businesstechnology/2021838801_hreharney22xml.html?prmid=4917 more online news at Jim Clooney Online Average U.S. rates on fixed mortgages declined this week amid signs the economic recovery is slowing.
Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan fell to 4.50 percent from 4.57 percent last week. The average on the 15-year fixed mortgage slipped to 3.54 percent from 3.59 percent last week. The retreat in the average rate of a 30-year mortgage comes just a couple of weeks after the rate reached a two-year high of 4.58 percent on Aug. 22. The average rate on a 15-year mortgage also hit a two-year high -- 3.60 percent -- that day. Overall, mortgage rates remain low by historical standards. Long-term mortgage rates have risen more than a full percentage point since May, when Federal Reserve Chairman Ben Bernanke first signaled that the central bank could begin reducing its monthly $85 billion in bond purchases this year if the economy looked strong enough. The purchases have been intended to keep long-term loan rates extremely low to encourage borrowing and lending. Mortgage rates tend to track the yield on the 10-year Treasury note. Many economists had expected the Fed would to decide at its policy meeting this earlier this week to scale back the bond purchases. But on Wednesday, the central bank voted to continue the bond-buying program at the current levels. It also cut its economic growth forecasts for this year and 2014, warning that the upcoming debt ceiling and budget battles between the White House and Congress could pose risks to financial markets and the economy. Growth and hiring remain modest by the standards of a robust economic recovery. Employers have added an average of 180,000 jobs a month this year, about the same as last year and in 2011. From April through June, the economy grew at a 2.5 percent annual rate, little changed from its 2.8 percent rate in the quarter when the Fed began its bond buying. Concerns over the possibility that interest rates will continue to rise have spurred some homeowners to close deals quickly. U.S. sales of previously occupied homes rose 1.7 percent last month to a seasonally adjusted annual rate of 5.48 million, the National Association of Realtors said Thursday. That's the highest level since February 2007. To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount. The average fee for a 30-year mortgage was steady at 0.7 point. The fee for a 15-year loan also was unchanged at 0.7 point. The average rate on a one-year adjustable-rate mortgage slipped to 2.65 percent from 2.67 percent. The fee was unchanged at 0.4 point. The average rate on a five-year adjustable mortgage fell to 3.11 percent from 3.22 percent. The fee was unchanged at 0.5 point. Source: http://www.dailyfinance.com/2013/09/20/mortgage-rate-slip-economic-recovery-housing-market/ Total Solutions Jim Clooney Fixed mortgage rates have leveled off more than a percentage point above recent lows, with Freddie Mac reporting that lenders this week were offering the 30-year home loan at an average of 4.57%, the same as last week.
The average offering rate for a 15-year fixed loan also was unchanged at 3.59%, according to Freddie Mac, which asks lenders about the terms they are offering to solid borrowers with down payments of 20% or more. Start rates on popular types of variable home loans were slightly lower. The markets are awaiting a key Federal Reserve meeting next week, when the central bank could decide to begin scaling back its economic stimulus program. The Fed has been buying $85 billion in Treasury and mortgage securities every month, and anticipation that it would begin tapering off the purchases this month has been a major factor in the rising rates. The higher rates have choked off the mortgage origination business, resulting in layoffs at many home lenders. The Mortgage Bankers Assn. said Wednesday that seasonally adjusted applications for home loans dropped 13.5% last week, with refinance applications down 20% and purchase applications 3%. The mortgage trade group said Thursday that applications for loans to buy new homes declined by 14% in August compared with July. Those figures did not include seasonal adjustments. In another report Thursday morning, analysts at BMO Capital Markets cut their earnings estimates for four big regional banks and for No. 1 mortgage lender Wells Fargo & Co., saying revenue from home lending is falling faster than expected. Freddie Mac asks lenders about the terms they would provide to borrowers who pay them less than 1% in upfront fees and discount points to obtain the loans. Borrowers typically are also required to pay for third-party services such as appraisals and title insurance, costs not included in the Freddie Mac survey. US 30 Year Mortgage Rate Chart source: http://www.latimes.com/business/money/la-fi-mo-freddie-mac-mortgage-rates-20130912,0,1538346.story Mortgage Jim Clooney |