In practice, Fannie and Freddie have dominated the mortgage finance market, prompting lawmakers from both ends of the political spectrum to take action.
Read More »Morgan Stanley Announces FHFA Settlement
Morgan Stanley is the latest company to make peace with the Federal Housing Finance Agency (FHFA) over alleged misrepresentation of bad securities sold to Fannie Mae and Freddie Mac.
Read More »Another Week, Another Drop in Mortgage Rates
In its weekly published Primary Mortgage Market Survey, Freddie Mac put the average 30-year fixed mortgage rate at 4.23 percent (0.7 point) for the week ending February 6, down from 4.32 percent previously. Frank Nothaft, VP and chief economist for Freddie Mac, once again pointed to weaker housing data as a factor in this week's rate changes, noting declines in December pending home sales and a negative contribution to GDP from fixed residential investment.
Read More »NAHB Projects Positive 2014 for Single-Family Homes
Speaking at the National Association of Home Builders (NAHB) International Builders' Show (IBS) in Las Vegas, economists expressed a positive outlook for homebuilders in 2014--with a few warnings. NAHB chief economist David Crowe noted five key points for his positive projections: ""Consumers are back, pent-up demand is emerging, there is a growing need for new construction, distressed sales are diminishing and builders see it."" However, builders still face hurdles like tight credit conditions, and difficulties in obtaining accurate appraisals.
Read More »2013 Refinancers Projected to Save $21B in 2014
Borrowers who refinanced last year will save on net about $21 billion in interest over 2014, according to the results of Freddie Mac's latest quarterly refinance analysis. The company's report shows the average interest rate reduction among refinancers in the fourth quarter was about 1.5 percentage points, translating into a savings of about 25 percent. Those who refinanced through the Home Affordable Refinance Program (HARP) during Q4 saw an average rate reduction of 1.7 percentage points, meanwhile.
Read More »Mortgage Rates Fall as Market Indicators Weaken
The average interest rate on the 30-year fixed-rate mortgage (FRM) came down to 4.32 percent (0.7 point) for the week ending January 30, Freddie Mac reported in its Primary Mortgage Market Survey.
Read More »Demand for Adjustable-Rate Loans Expected to Rise
As fixed interest rates continue on their upward path, initial-period rates on adjustable-rate mortgages (ARMs) remain near historic lows--a stat the Freddie Mac anticipates will factor into borrowing decisions in the year ahead. "As longer-term interest rates rise, ARMs with their lower initial interest rates will become more appealing to loan applicants," said Frank Nothaft, VP and chief economist for Freddie Mac. "We are expecting ARMs to gradually gain back some favor with mortgage borrowers."
Read More »Secondary Business Increases at Freddie Mac
Freddie Mac's mortgage business grew--albeit slowly--in December, capping the year with an overall negative growth rate.
Read More »FHFA Records Price Gains for 22nd Straight Month
The Federal Housing Finance Agency's (FHFA) monthly House Price Index (HPI) slowed its upward march substantially in November, rising only 0.1 percent compared to October's 0.5 percent. November's increase marked the 22nd straight monthly gain in FHFA's purchase-only, seasonally adjusted index. As of the end of the month, the U.S. index was 8.9 percent below its April 2007 peak, resting at roughly the same level as it was in April 2005.
Read More »Mortgage Rates Float Ahead of Next Fed Meeting
It's been a quiet week for mortgage rates, which drifted down slightly as markets wait to see what comes of the Federal Open Market Committee's next meeting in late January.
Read More »