Tag Archives: Fixed-Rate Mortgage

Investors helped keep interest rates for mortgage loans in record-low territory this week, as European Union leaders grappled with lurking debt crises in Spain and Italy. Real estate Web site Zillow recorded the 30-year fixed-rate mortgage at 3.6 percent, just above an all-time low of 3.59 percent set two weeks before. Rates for 15-year loans averaged 2.91 percent, while those for 5-year and 1-year adjustable-rate mortgages hovered at 2.54 percent. Rates for 30-year fixed-rate loans largely fell in most states, climbing only in Illinois, New York, and Washington.

The Responsible Homeowner Refinancing Act of 2012, introduced this month by Sens. Robert Menendez and Barbara Boxer, received backing from witnesses at a Senate Banking Committee hearing. The bill aims to address what the senators say are barriers impeding the success of the recently revised Home Affordable Refinance Program, commonly referred to as HARP 2.0. The bill aims to eliminate all upfront fees and appraisal costs for refinances, prohibit second-lien holders from unreasonably hindering refinances, and more.

Investors fleeing Europe once more helped drive mortgage refinance applications to 3.8 percent this week, up from the week before, according to the Mortgage Bankers Association. The MBA's Refinance Index climbed 5.6 percent from the week before, signaling a rise for the third consecutive week and helping reach highs not seen since February earlier this year. The four-week moving average ticked up by 4.83 for the index. The refinance share of mortgage activity leapt to 76.6 percent of total application volume.

The 30-year fixed-rate mortgage hovered at 3.63 percent this week, up from record lows last week, with debt crises in Europe continuing to scare investors and drag down prospects for a steady economic recovery. Real estate Web site Zillow found the 30-year fixed-rate mortgage down to 3.63 percent, up from 3.59 percent last week. The 15-year home loan averaged 2.93 percent, while rates for 5-year and 1-year adjustable-rate mortgages reached 2.54 percent. Europe remains a sore spot for the economic recovery.

First-lien home loans helped move credit unions to set new records with loan originations over the first quarter. Callahan & Associates, a Washington, D.C.-based law firm, said Monday that first mortgage originations reached $26 billion by the end of the quarter, accounting for 36 percent of originations. Credit unions reportedly originated 160,746 first-lien loans, with mortgages averaging $161,549. Consumer loan originations ticked up 16.6 percent to reach $39 billion quarter-over-quarter but fell year-over-year.

Interest rates for mortgage loans saw new, all-time lows this week as investors fled debt crises in Europe. Freddie Mac found the 30-year fixed-rate mortgage sliding to 3.79 percent, down from 3.83 percent last week and a far cry from 4.61 percent last year. The 15-year loan fell from 3.05 percent to 3.04 percent. Adjustable-rate mortgages went up. The finance Web site Bankrate.com likewise saw new record lows for mortgage rates, with the 30-year fixed-rate mortgage dropping below 4 percent for the first time by arriving at 3.97 percent.

A rash of new concerns in debt-saddled Europe drove investors to U.S. Treasury debt, keeping mortgage rates at all-time lows and leading mortgage application volume to tick up 9.2 percent. The Mortgage Bankers Association recorded an 8.7 percent increase in applications for the Market Composite Index on a seasonally unadjusted basis. Analysts credit an upset in Greek elections last week with the rush by investors to U.S. Treasury debt, with policymakers in the Mediterranean country likely seeing elections next week.

The Federal Housing Finance Agency unveiled new additions to the strategic plan it released in February this year, with many changes focused on moving the secondary mortgage market back to private capital sources and creating infrastructure needed to replace Fannie Mae and Freddie Mac. The additions include four principles, such as safety and security for the residential mortgage market, stability and liquidity in housing finance, and preservation of current enterprise assets. The plan, due for enactment if passed by Congress between the years 2013 and 2017.

The 30-year fixed-rate mortgage reached a new all-time low Tuesday as concerns grew that Greece would leave the euro zone in a disorderly way. Real estate Web site Zillow found the loan at 3.59 percent, down from 3.65 percent last week, the lowest rate recorded by the company since it began tracking interest rates for mortgages in April 2008. This is down from a previous all-time low of 3.65 percent recorded in May. Mortgage rates zigzagged lower across many states, falling 14 basis points in Massachusetts and 11 basis points in Texas.

A fresh round of concerns that Greece may leave the euro zone sent U.S. stock markets into a dizzying tumble Monday. After some lift in recent weeks, the Dow Jones Industrial Average fell 125.25 points to close by end of day at 12,695, along with shares for the nation├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós four largest lenders. The deal reportedly involves a Syriza, a leftwing bloc opposed to further austerity measures that may parlay slashes to Greek social services for $170 billion in bailout funds under a package jointly agreed-to by the European Union and International Monetary Fund.