Tag Archives: Refinance

A climb for mortgage rates last week cooled mortgage applications, leading overall volume to edge down by 2.7 percent. The Mortgage Bankers Association found in a weekly survey that the refinance share of mortgage activity also continued a six-week streak of declines, with a deflation from 73.4 percent of total applications to 71.9 percent last week. The Refinance Index accordingly ticked down by 4.6 percent from the week before, falling to the lowest figures since December last year. The MBA attributed the dip in a statement to a 12-percent decline in government refinance activity.

The days of record-low mortgage rates may be in our rearview mirror. Rates for all loan products headed higher this week - and by more than just the incremental 1 or 2 basis points. Analysts attribute the rise to increasing bond yields, driven by investors' growing confidence in the economy and recent evidence from the Federal Reserve's stress tests that indicates banks have strengthened capital levels enough to maintain operations and continue lending through another hypothetical recession.

Economic releases in recent days have signaled positive movement, albeit gradual, toward a strengthening economy. The rosier outlook has led mortgage interest rates higher. The 30-year fixed-mortgage rate on Zillow Mortgage Marketplace came in at 3.74 percent, up five basis points from 3.69 percent at the same time last week. Rates for a 15-year fixed mortgage, as well as adjustable-rate mortgages, also rose. Experts say conditions are primed for mortgage rates to continue to rise in the coming weeks and months.

The Federal Home Loan Bank of Chicago's Downpayment Plus programs went live recently, offering borrowers from its regional bank members in two states a subsidy of $8,000.

Homebuyer affordability is at a record high, and a big driver of that underlying market denominator is the fact that mortgage interest rates continue to hover close to 60-year lows. Data released Thursday by Freddie Mac puts the average rate for a 30-year fixed mortgage at 3.88 percent, and the 15-year fixed-rate mortgage hit a record low of 3.13 percent. Frank Nothaft, Freddie Mac's chief economist, says that due to these factors, the typical family had more than double the income needed to purchase a median-priced home in January.

In signs that a stable housing rebound may still be ways off, mortgage applications contracted by 1.2 percent last week, even while the Home Affordable Refinance Program offered a still-steady buttress for refinance activity. The Mortgage Bankers Association found in a weekly survey that mortgage application volume also declined by 10.2 percent on a seasonally adjusted basis. The Purchase Index went up by a seasonally adjusted 2.1 percent from last week, while it climbed by 14.7 percent on a seasonally unadjusted basis.

The Obama administration revealed recently it will relieve veterans wrongly foreclosed upon by servicers, as well as slashing refinancing rates for FHA loans.

A troubled year for housing surfaced in a February housing scorecard from the Obama administration Friday, underscoring a still-unsteady pace for home prices, mortgage origination volume, and housing supply. Jointly released by HUD and the Treasury Department, the scorecard reflects an industry still in transition from crisis to recovery. The scorecard cited a National Association of Realtors Home Affordability Index, showing that it moved from 179.1 February last year to 194.9 this year, not far from the level seen in January.

Private mortgage insurance companies backed home loans to the tune of $4.9 billion in January, a decline from $6.9 billion last year, as the industry continues to reel from sapped business and credit downgrades. Mortgage Insurance Companies of America found $399 billion in insurance-in-force for member companies Genworth Mortgage Guaranty Insurance Corp., Radian Mortgage Insurance Co., and Republic Mortgage Insurance Co. The trade group said that some 21,904 borrowers made a purchase or loan refinance.

The refinance share of mortgage applications broke with several weeks of activity by falling below 80 percent last week, even while more borrowers took advantage of the expanded Home Affordable Refinance Program. The Mortgage Bankers Association said in a weekly survey that mortgage application volume contracted by 0.3 percent from the week before, while the index covering it dropped 9.4 percent on a seasonally unadjusted basis. The Refinance Index climbed down by 2.2 percent from the week before.