Tag Archives: Freddie Mac

Freddie Mac announced Tuesday its plans to expand on its Relief Refinance Mortgage Program by aligning separate mortgage requirements. The GSE announced that it will align requirements for mortgages with loan-to-value ratios that are equal to or less than 80 percent with those for mortgages with LTV ratios greater than 80 percent. The alignment is expected to eliminate many of the lender├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós selling representation and warranty responsibilities on loans being refinanced. Details are scheduled to be announced to lenders by mid-September.

Lingering worries about the European debt crisis continue to drive investors to U.S. government bonds, sending fixed mortgage rates down to another record low. According to Freddie Mac├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós Primary Mortgage Market Survey, the 30-year fixed-rate mortgage averaged 3.49 percent (0.7 point) for the week ending July 26, down from 3.53 percent the previous week. At the same time in 2011, the 30-year FRM averaged 4.55 percent. Adjustable rate mortgages actually saw a small boost, with the 5-year ARM averaging 2.74 percent (0.6 point), an increase from 2.69 percent the previous week.

The third week of July brought news of more mortgage rate lows, according to Freddie Mac. The GSE found the 30-year fixed-rate mortgage averaging 3.53 percent (0.7 point), down from 3.56 percent from the past week and 4.52 percent from the year before. In all of 2012, the average 30-year home loan has only scaled to 4 percent or higher for one week. The average 15-year mortgage for the week was 2.83 percent (0.6 point), down from 2.86 percent the week before and 3.66 percent at the same time in 2011.

Increased home sales continue to help the United States out of its Great Recession, but uneven job growth is stunting recovery, according to Freddie Mac├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós U.S. Economic and Housing Market Outlook for July. The report, released Wednesday, showed that record-breaking low mortgage rates and refinances through HARP 2.0 drove up housing demand, leading to increases in housing starts, home sales, and prices in many markets. Housing starts for the first five months of the year averaged an annual rate of 719,000, a 26 percent increase from the same period in 2011.

More underwater borrowers are choosing to refinance their mortgages under the Home Affordable Refinance Program than at any time since the government program launched in 2009, according to the Federal Housing Finance Agency. The regulatory agency released a report Monday that found total refinance volume up by 20 percent in May. The reasons why? According to the FHFA, record-low interest rates for 30-year fixed-mortgages couple with recent modifications to HARP to create the conditions for a refi boom.

Freddie Mac's latest Primary Mortgage Market Survey showed average fixed mortgage rates finding yet another record low. The 30-year fixed-rate mortgage averaged 3.56 percent (0.7 point) this week, down from 3.62 percent the previous week. At the same time last year, the 30-year loan averaged 4.51 percent. This week marks the fourth month that the 30-year average has stayed below 4 percent. The 15-year fixed-rate mortgage also fell, averaging 2.86 percent (0.7 point), a drop from 2.89 percent last week. A year ago, the 15-year fixed averaged 3.65 percent.

Mortgage rates continued to drop Thursday as the average 30-year fixed mortgage rate slammed into a new record low of 3.87 percent, according to Freddie Mac. The GSE found that for interest rates for the 15-year loan fell to 3.13 percent, while the jumbo 30-year fixed mortgage declined to 4.47 percent, each setting record lows. Adjustable-mortgage rates were mixed, with the average 3-year and 1-year ARMs inching higher to 3.07 percent. The popular 5-year and 1-year ARMs pulled back below the 3 percent threshold.

Mortgage rates remained somewhat flat for the week ending June 28, according to Freddie Mac├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós Primary Mortgage Market Survey. Average fixed mortgage rates remained largely unchanged, helping to keep affordability high for buyers in the market to purchase a home or looking for a refinance. The 30-year fixed averaged 3.66 percent (0.7 point), staying level with the all-time low that was achieved the previous week. At this time in 2011, the 30-year fixed averaged 4.51 percent. The 15-year fixed averaged 2.94 percent (0.7 point), down slightly from 2.95 percent the previous week.

Increases in all aspects of Freddie Mac├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós total mortgage portfolio led to a higher (but still negative) annualized growth rate, according to the GSE├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós Monthly Volume Summary for May. The summary showed that Freddie Mac's total mortgage portfolio for the month shrank at an annualized rate of 9.4 percent, a drop from 14.1 percent in April but still far above March├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós 2.9 percent contraction rate. The negative annualized growth rate YTD is 6.8 percent. Liquidations dropped immensely - by negative $45.4 billion.

The Federal Housing Finance Agency filed suit Friday against Illinois tax officials for imposing unlawful taxes on Fannie Mae and Freddie Mac. Several Illinois counties have attempted to collect transfer taxes from the GSEs, and some have threatened to reject future property transfers from the enterprises if they do not pay the state and county transfer taxes. Illinois officials have demanded transfer fees from both enterprises. Similar claims and demands have been made from other Illinois counties.