Mortgage Rates Await New Year, December 31. 2010

 

On the last and shortened trading day of the year mortgage rates are poised to bounce around somewhat before settling near the close. Trading will likely be light today but that can often lead to big swings. With no data to guide markets, however, their should not be any lasting impact from today's trading.

Mortgage Rate Re-Pricing Alert 2:00 PM ET, December 31, 2010

Mortgage rates have dropped today as a year end rally has occurred in mortgaged-backed securities.  Perhaps this is a good omen for the New Year!  Happy New Year to all!

Pending Home Sales Show Modest Gain

Pending home sales posted a modest increase in November, as the housing market gradually comes back from the stunning lows of last summer.

Five New Year’s Mortgage Resolutions

Only 3 to 6 percent of people keep their New Year’s resolutions. Defy the odds, and resolve to get your financial life under control, starting with the following mortgage resolutions.

Foreclosures Up, But Mortgages Stable

U.S. foreclosure activity rose sharply in the third quarter of the year, not because more people were getting in financial trouble, but because lenders were working through a backlog of delinquent borrowers who had exhausted their options for avoiding foreclosure.

Mortgage Rates Resume Climb

Mortgage rates resumed their climb this week, after a brief respite prior to the Christmas holiday, according to this week’s Freddie Mac rate survey.

Mortgage Rates Consider Jobs, December 30, 2010

Finally during this holiday week we have some data to provide guidance for the markets. Yesterday went as expected and saw rates recover from losses earlier in the week. Today jobless claims, Chicago PMI and Existing Home Sales will provide guidance.

Delinquencies Down, Foreclosures Up

The number of homes in foreclosure rose for the fifth consecutive month in November, even as mortgage delinquencies declined across the board, as lenders cut back on sales of distressed properties in the wake of the robo-signing controversy.

New Mortgage Rules Criticized

New lending rules would weaken consumer protections against predatory lending by allowing creditors to avoid penalties for misstating the real costs of mortgages, a leading consumer advocacy group contends.

Mortgage Rates Attempt to Recover, December 29, 2010

 

Yesterday was more active for mortgage rates than I had anticipated. Sometimes with very little news and data a relatively minor occurrence can have outsized impact. A poor auction yesterday of 2 Year US Treasury securities, perhaps related to weather issues, caused mortgage-backed securities (MBS) to sell-off rather significantly thereby bumping rates up a meaningful amount. Today is likely to be a day of recovery for rates as the increase yesterday was largely based on non-market factors.

How Convenient is Your HELOC?

Financial institutions are compensating for shortfalls by offering ultra-convenient home equity lines of credit (HELOC).

Boost in Funds for Mortgage Counseling

Nearly $73 million in housing counseling grants have been awarded by the Department of Housing and Urban Development (HUD), with the goal of helping families become first-time homeowners and avoid foreclosure.

Compromise Sale for VA Loans

Military families have been hit particularly hard by the mortgage crisis. The VA offers some relief in the form of a compromise sale.

Mortgage Rates Biding Time, December 28, 2010

We are definitively into the holiday doldrums for market activity. Combined with the major blizzard in the Northeast, trading volumes on all exchanges will continue to be even lighter than normal. With only one official report due out today--Consumer Confidence--mortgage rates will likely stay close to current levels.

Home Prices Show Annual Decline

U.S. home prices are again trending downward, posting their first annual decline in nine months, according to the newest Standard & Poor’s/Case Shiller survey of 20 major metropolitan markets.

Mortgage Rates Headed Back to North (Pole)?, December 27, 2010

 

Christmas is over and the New Year's holiday comes at the end of the week...so where do markets and mortgage rates head? Today news from China and a major snowstorm in the Northeast will impact trading. In general this week is typically the slowest week for trading all year.

Refinance Alternative: Mortgage Recast

You can upgrade an outfit from office attire to evening wear by switching out the shoes. What’s even better is to swap an unaffordable mortgage payment for an affordable one—and all you have to do is ask.

New Homes Sales Show Modest Gain

New home sales posted a modest increase in November, but still remain well below their levels of one year ago, according to figures released by the Census Bureau.

Privatization May Not Cure GSE Ills

Fully privatizing the secondary mortgage market might not protect taxpayers from having to once again underwrite major losses in the mortgage market, the Congressional Budget Office (CBO) has warned.

Mortgage Rates Back Off Slightly

Mortgage rates fell back slightly this past week, breaking a run of five consecutive weekly increases that saw rates increase by more than half a percent across the board.

HAMP Loan Modifications Increase

In a reversal of recent trends, the number of loan modifications granted under the government’s Home Affordable Modification Program (HAMP) rose in November, in a bit of good news for both homeowners and the Obama administration’s much-criticized anti-foreclosure program.

Will Data Offer a Christmas Gift?, December 23, 2010

Data, data and more data! It is a busy morning in the markets today with a plethora of economic reports being released. Durable goods, personal income and spending along with jobless claims will drive market activity during the morning.

Three Ways to Avoid Mortgage Anxiety

You don’t need statistics to tell you that Americans are anxious about their finances. Keep the worry out of mortgages by following these three suggestions.

Big New Home Gains Predicted for 2011

New home sales and construction will bounce back next year, with nearly 20 percent gains projected as part of a broader recovery of the housing market and the economy in general, according to the newest Fannie Mae economic forecast.

Mortgage Modification Survival Kit

An outdoor survival kit might contain a Swiss army knife, a lantern, and a lighter. Unfortunately, these tools are powerless to help you survive a journey through the wild landscape of mortgage loan modification. 

Homes Sales Rise in November

Existing home sales rose in November, increasing a seasonally adjusted 5.6 percent as the housing market continues to shake off the aftereffects of the homebuyer tax credit.

Mortgage Rates and the GDP, December 22, 2010

 

Today, though still impacted by the holiday slowdown in trading, will still see markets react to actual economic data. The final revision to third-quarter 2010 US gross domestic product (GDP) and figures on new home sales will provide a read on the current state of the US economy.

Reduce Refinancing Closing Costs

Bloggers are wondering what’s next for "The Biggest Loser" tough girl trainer Jillian Michaels. The mortgage industry could use her direct style of conflict resolution to hold lenders true to closing cost estimates.

Big Drop in Fannie, Freddie Loan Mods

Mortgage loan modifications by Fannie Mae and Freddie Mac fell off sharply during the third quarter of the year, with ongoing activity down by more than half.

Home Values Hurt Small Business Loans

The decline in housing prices in recent years has been a drag on small businesses, a new study concludes, because it has limited the ability of owners to borrow against their home equity, an important source of capital.

Mortgage Rates Stay In Range, December 21, 2010

A second day in a row with little movement in markets and rates is expected. With no official data and many market participants taking an extended holiday we will likely see a calm trading session and relatively stable mortgage rates.

Home Prices Show Small Annual Decline

U.S. home sales fell 5 percent in November, exceeding the normal seasonal decline heading into winter, although modest price declines raised hopes among realtors hope that the market is stabilizing.

Five Tips for Savvy Mortgage Shopping

Americans love to comparison shop – but apparently not for mortgages. Don’t be afraid – it’s easy to get the best deal on a home mortgage if you know what to look for.

Mortgage Rates Seek Holiday Joy, December 20, 2010

 

Christmas Bells are ringing! The markets are poised for a quiet week prior to the Christmas holiday's. Typically the week of Christmas sees very light volumes in both the equity (stock) market and the debt (bond) market. Some data may push markets on Wednesday and Thursday but no shocks are expected.

Mortgage Rates Weekly Review, December 20, 2010

Mortgage rates endured another difficult journey this past week. A federal reserve that offered no change in their policies or communication combined with better than expected financial news sent rates skyward in the middle of the week, but as the holidays approached rates improved somewhat. Let's take a closer look.

Few Discouraged from Homeownership

Despite plunging property values and waves of foreclosures, the housing crisis has discouraged few people from wanting to own a home, according to a recent study by Fannie Mae.

Warren to Seek Simplified Mortgages

Mortgages and credit cards will be the primary initial focus of the new Consumer Financial Protection Agency because of the major roles they play in people’s lives, the person charged with setting up the new bureau has said.

Single-Family Housing Starts Perk Up

Single-family housing starts picked up in November, rising nearly 7 percent to their highest rate in six months, according to new figures from the Census Bureau.

The Right Rate: Fixed or Adjustable?

Not all simple questions have simple answers. If your grocer asks “paper or plastic,” you must pick convenience or environment. If your lender asks “fixed or adjustable,” you must choose stability or cost savings.

Mortgage Rates: Taxes and Witching, December 17, 2010

It could be an interesting day...or not. After a great day yesterday for mortgage rates, in which a big chunk of the recent run up in rates was reversed, today may have the makings of further drama. Late last evening the US House approved the tax policy extension bill, including extension of unemployment compensation. Today is also quadruple witching Friday in which stock index futures, stock index options, stock equity options and single stock futures all expire prior to the market opening.

Foreclosures Drop, But For How Long?

Foreclosures fell abruptly in November, with total activity down by 21 percent from the month before, but that isn’t necessarily a strong sign for the housing market.

Mortgage Rates Need a Break, December 16, 2010

Mortgage-backed securities (MBS) prices fell off a cliff yesterday afternoon after US Senate passage of the tax compromise bill and a poor municipal bond auction. This has resulted in new recent highs for mortgage rates. Today figures on jobless claims will be the primary driver of the markets. Also, housing starts data and a report from the Philadelphia Federal Reserve bank will also provide an impact in today's trading.

Mortgage Rate Re-Pricing Alert 3:30 PM ET, December 16, 2010

After a volitile morning the mortgage-backed securities market has rallied this afternoon enabling lenders to lower mortgage rates. Unfortunately, it does not appear to be the start of a new trend, but only a response to several days of market movement in the other direction.

Second Mortgage Shopping Tips

Shopping during the holidays is a battle. If you want a Zooble, protective kneepads and goggles are in order. Thankfully, shopping for a second mortgage is a quieter kind of battle—no shoving and pushing required. 

Many Accept First Quote on Mortgages

U.S. consumers, it seems, like to shop around for almost everything – except mortgages. That’s the conclusion from a new survey by Harris Interactive and Lending Tree.

Second Liens Are Getting Paid First

Borrowers who default on their primary mortgage often strive to stay current on secondary liens, despite the difficulty second lien holders face in trying to foreclose on underwater properties, a new report has found.

Mortgage Rates Post Big Jump

Mortgage rates took a big jump last week on prospects of stronger economic growth, sending 30-year loans to their highest rates since early May.

Mortgage Rate Re-Pricing Alert 2:00 PM ET, December 15, 2010

Mortgage pricing may be headed higher this afternoon after the US Senate passed the tax compromise bill this afternoon. After word that the bill contains billions of pork-barrell spending markets have signaled their displeasure. Additionally a wek auction of municipal bonds has spooked investors that state and municipal finances may be the next trouble area for the US economy.

Condos Losing Access to FHA Loans

It’s not easy being a condominium owner. Not only are sales down, but FHA restrictions on mortgages for condos will make it harder for homeowners to sell or refinance.

Mortgage Rates Hit 5%, December 15, 2010

Ouch! Most lenders have moved rates higher on the standard 30 year fixed rate mortgage to 5% for the best customers. While dramatically higher than recent lows rates are still at historically low levels. Today more data will be released that will help determine if the upward move in rates continues or we see some improvement.

Challenges of Refinancing

The pundits are declaring that mortgage rates are likely to begin an upward trend in 2011. There’s no time like the present to refinance – but can you overcome all the obstacles in your way?

Mortgage Rates Settle?, December 14, 2010

The Federal Reserve Open Market Committee meets today and the statement they release this afternoon will be the dominant news moving the markets and mortgage rates unless data released this morning includes a surprise. The Producer Price Index and Retail Sales report will be released this morning and expectations are for modest increases in both.

Panel: HAMP Tripped Up by Servicers

The government’s Home Affordable Modification Program (HAMP) will likely help only 700,000-800,000 homeowners avoid foreclosure, about one-fifth of its original goals, a congressional review has determined.

Private Loan Modifications Decline

Loan modification activity took a substantial drop in October, but it’s too soon to say whether it’s related to the robo-signing controversy or any other ongoing trend, according to at least one leading industry expert.

FHA Home Improvement Rehab

The foreclosure crisis has left many properties abandoned and in a state of disarray. It may be the perfect opportunity to find one, and fix it up with an FHA 203(k) rehabilitation loan.

Fewer Underwater, Due to Foreclosures

The number of U.S. homeowners in negative equity is declining, but that’s mostly due to some of them losing their homes to foreclosure and not to increasing property values or paid-down mortgage debt, according to real estate data firm CoreLogic.

Mortgage Rates at High Altitudes, December 13, 2010

Is this a new week with better results for mortgage rates? Hopefully, but it is not likely to start better today. This afternoon’s vote on the tax compromise bill in the US Congress will probably cause traders to demand higher yields from mortgage-backed securities as stock investments are believed to be better places to put money in a strengthening economy.

Mortgage Rate Re-Pricing Alert 2:45 PM ET, December 13, 2010

You simply never can know for sure which direction mortgage rates are going to move. Today we began the day fearing that the recent uptick in rates would continue--and it may--tomorrow. But thanks to the Federal Reserve's purchasing activity in the bond markets and a Federal judge striking down a key provision of the health care legislation from earlier in the year, we have seen modest improvement in mortgage-backed securities and mortgage rates.

Weekly Mortgage Rate Review, December 10, 2010

The worst week for mortgage rates in a year is now behind us. However, the question for us is whether this was an isolated event or a sign of things to come. We saw significant increases in mortgage rates after a sell-off in the mortgage-backed securities (MBS) markets caused primarily by better economic news in the US. Let’s review the week.

BofA To Resume Foreclosures

Bank of America has announced that it is resuming foreclosures, after a two-month suspension to review documentation problems associated with the robo-signing controversy.

Six Second Mortgage Pitfalls

Mistakes are inevitable. According to George Bernard Shaw, “Success doesn’t consist in never making mistakes, but in never making the same one a second time.” But an educated consumer can succeed without making any.

Gradual Housing Recovery Seen in 2011

The U.S. home prices should bottom out in the first half of 2011, followed by a gradual but sustained recovery with first-time homebuyers drawn back into the housing market by low interest rates and affordable prices.

Markdowns Increase on Homes for Sale

Price reductions on homes listed for sale increased dramatically over the past year, with nearly half of them marked down at least once since going on the market.

Mortgage Rates: Whew What a Week!, December 10, 2010

 Mortgage rates have been on a bumpy ride this week.  Unfortunately, the ride has been mostly higher.  Today we will likely see more volatility to begin with, but perhaps some settling by the afternoon.  Economic reports on trade, import prices and consumer sentiment will provide the energy.

Mortgage Rates Take a Time-Out, December 9, 2010

After a sharp upturn in rates over the past week, rates may take a time out from the wild moves today.  The weekly jobs report detailing first time claims and on-going claims for unemployment compensation will be the driver of markets and mortgage rates today.

Home Values Drop $1.7 Trillion

U.S. home values fell even more in 2010 than they did last year, with an expected $1.7 trillion total decline by year’s end, according to figures released today by the real estate data company Zillow.

Is Refinancing an Option for You?

Santa can deliver many gifts, but a mortgage refinance may not be one of them. If you’re ready to overhaul your mortgage, the first step is to determine whether you’ll qualify.

Lenders Pressed to Write Down Loans

The Obama administration is pressing Fannie Mae and Freddie Mac to participate in a new program designed to reduce mortgage debt for homeowners who owe more than their property is worth, the Wall Street Journal is reporting.

Mortgage Rate Re-Pricing Alert 2:45 PM ET, December 7, 2010

Mortgage pricing has improved substantially after a successful auction of 10 Year US Treasury securities. While not yet back to neutral for the day, and substantially worse than last week, at least the trend in pricing has reversed for the time being.

Few Expect Housing to Rebound Soon

Over half of all Americans think it will take at least two years for the housing market to recover, with more than one in five saying it won’t happen until 2015 or later.

Mortgage Rate Re-Pricing Alert 11:00 AM ET, December 8, 2010

Mortgage pricing is headed up even further than initial expectations this morning. Investors do indeed seem to be demanding higher returns on mortgage-backed securities given the added risks in the US imposed by high deficits and long term budget challenges.

Mortgage Rates Rise Further, December 8, 2010

Yesterday was one of the worst days of 2010 for mortgage pricing.  Today appears headed in the same direction…up.  The tax deal in the US spurred hopes that US economic growth would accelerate in the next few months and continue throughout 2011.

Improve Chances for Loan Modification

Jay Leno called it ironic that “we pick politicians by how they look on TV, and Miss America on where she stands on the issues.” Every selection process has its quirks, including a mortgage loan modification.

More Apply for Home Purchase Loans

Mortgage applications for home purchases inched up again last week, even as interest rates continued their steady rise over the past month.

Mortgage Rate Re-Pricing Alert 1:00 PM ET, December 7, 2010

Mortgage rates are having their worst day in months as the tax deal in Washington and negative news outside of the US have combined to send stock prices up and mortgage-backed securities tumbling. Significant repricing to the negative has been seen today by most lenders.

Top Six Reverse Mortgage Questions

Reverse mortgages are taking America by storm. Here are answers to the top six questions about the lending instrument that can help seniors weather the storms of financial woe by tapping into their home equity.

Big Drop in Delinquencies Forecast

Mortgage delinquencies will decline nearly 20 percent over the coming year, driven by an improving economy, according to a new forecast from credit reporting firm Transunion.

Warren: Make loan terms transparent

Saying there is a limit on what “thou shalt not” rules can accomplish, the head of the new Consumer Financial Protection Bureau is calling for a more proactive approach to ensure than consumers are not taken unfair advantage of in mortgages and other financial transactions.

Mortgage Rates-December 7, 2010-Good News is Bad

Good news for the economy is usually bad news for mortgage rates.  Tuesday is a good news/bad news day.  The anouncement of a deal between the President and Congressional leaders over extension of the current tax rates will likely drive mortgage rates higher.

Weekly Mortgage Rate Review, December 3, 2010

The market week ending December 5, 2010 was not a good week for mortgage rates. Nervous traders sold off mortgage-backed securities (MBS), or perhaps more accurately, choose other investments to place their bets on. Actually, there wasn't really a great deal of action in the MBS markets except for Wednesday. Let's review the week.

Mortgage Rates Get Fresh Start, December 6, 2010

After a volatile and negative week fades into he rear view mirror, today offers a fresh start to reclaim previous lows in mortgage rates.  With no data today, economic and non-economic news from around the world will guide investor's decisions on what to buy.  If they opt for mortgage-backed securities, then mortgage rates will fall.

The Home Equity Savings Plan

American cartoonist Kin Hubbard said “the safest way to double your money is to fold it over once and put it in your pocket.” The truth is, Americans have a hard time making money, and an even harder time saving it.

Mortgage Rates Snap Back on Jobs Surprise, December 3, 2010

Today's market activity and its impact on mortgage rates is all about the results of the Non-farm Payroll report this morning.  Expectations have been building for a strong improvement in the overall job creation trend in the US.  Well, proving that economic forecasting is a highly inexact science, today's report provided a big surprise.

Success with Home Improvement Loans

A home improvement project is not only stressful, but expensive. But if you choose the right home improvement loan, you can focus on the beauty of the project, and not worry about the ramifications to your wallet.

Mortgage Market Trends: New York and Florida Show Increased Mortgage Activity

According to new consumer activity collected by MortgageLoan.com between October 15 and November 15 2010, the New York City metro area and cities in Florida are seeing overall increases in mortgage and refinance requests.  Requests in Boston, Texas, and the Southwest are mixed. 

Cuts to Mortgage Deduction Opposed

Even before the Fiscal Commission voted on whether to approve its controversial deficit reduction plan, the mortgage and housing industries were gearing up in opposition to its proposed elimination of the mortgage interest deduction.

Pending Home Sales Up Sharply

Pending home sales rebounded in October, rising a seasonally adjusted 10.4 percent to reach their highest level since last spring.

Special Factors for Jumbo Mortgages

They say that bigger is better. And that adage may be true with respect to jumbo mortgage loans. With a jumbo mortgage, you generally get a bigger home, bigger debt balance, and bigger monthly payment.

Mortgage Rates Reach Recent Highs, December 2, 2010

Mortgage pricing hit recent highs yesterday as concerns regarding the debt crisis in Europe subsided with comments by the President of the European Central Bank (ECB) that they would be purchasing the debt securities of the troubled member nations. Also, in the US the stock market rallied on strong economic reports sending mortgage-backed securities (MBS) much lower in trading yesterday. Today, additional comments from the ECB President and the important initial jobless claims report will guide markets.

Foreclosure Discount Increases

Buyers of foreclosed homes obtained their biggest discounts in nearly five years during the third quarter of the year, shaving nearly one-third off the price of comparable residential properties.

Mortgage Rates End European Vacation, December 1, 2010

Mortgage pricing has improved in recent days due in large part due to the debt crisis in Europe.  Today however, the European vacation ends as a European Central Bankers (ECB) pledged to purchase the debt of troubled nations for as long as necessary.

Mortgage Rate Re-Pricing Alert 2:45 PM ET, December 1, 2010

Mortgage pricing has increased substantially today in response to the European Central Bank's pledge to buy debt from troubled member nations, stronger than expected economic reports and a big stock market rally.

Impact of Changing Mortgage Rates

Winston Churchill said, “there is nothing wrong with change, as long as it is in the right direction.” Unfortunately, the “right direction” for mortgage rates is down—and that’s not where things are headed.

A Trend for Smaller Homes

In this economic climate, home buyers want smaller homes and it’s not just for the smaller mortgage.
One of the upsides to the current recession is the natural and necessary scaling back that goes along with it. Frankly, your life doesn’t have to look like an episode of Hoarders to benefit from a little bit of downsizing. 
 

Interest in Refinancing Dwindles

Homeowners’ interest in refinancing their mortgages continues to decline, as 30-year loan rates rose for the third consecutive week, according to figures reported today by the Mortgage Bankers Association (MBA).

Residential Construction Picks Up

Spending on private residential construction picked up slightly in October, increasing 2.5 percent over the previous month, according to figures released today from the Census Bureau.

Small Lender Expands into Arizona

Seeing expanded opportunities for smaller banks in the evolving mortgage market, Heartland Financial today announced a significant expansion into the Arizona market by purchasing the residential mortgage arm of a defunct thrift in that state.

Financing a Second Home

If you’re one of the lucky ones who has a steady job and cash in the bank, you may be itching to buy a second home. With low interest rates and sellers dying to sell, this may be the perfect time.

Mortgage Rates Respond to European Issues, November 30, 2010

Mortgage rates today appear headed lower in response to concerns that the debt crisis in Europe may expand to additional countries.  Specific concerns have been raised about Portugal and even Italy's ability to meet their debt obligations.  The impact on mortgage rates is positive because investors seeking safer returns are fleeing the securities of smaller European nations and purchasing other investments such as mortgage-backed securities (MBS).

Increasing Pessimism Over Home Prices

Americans are growing increasingly wary of the housing market, with declining numbers saying they think now is a good time to buy a home, despite depressed prices and record-low mortgage rates.

Home Prices Decline in 3rd Quarter

U.S. home prices fell in the third quarter of the year, as the housing market cooled off following the end of the homebuyer tax credit, according to two major reports released today.

Mortgage Industry Employment Declines

If you need a mortgage or are looking to arrange a loan modification, there are fewer people working in the mortgage industry who might assist you than there were a few months ago.

VA Loans for Civilians

The VA gives loans to military members with far more favorable terms than are offered in the conventional housing market. Did you know there’s also a program for civilians to get VA loans?

Weekly Mortgage Rate Review: November 26, 2010

The Thanksgiving holiday came at a good time. The volatility of the last several weeks and even the normally quiet holiday week left all observers in need of a respite. Two events dominated the markets and influenced mortgage rates this week: the attack by North Korea on its neighbor to the south and the release of the minutes from the last Federal Reserve Open Market Committee meeting.

Week in review

Monday was indeed relatively quiet with no data or significant news. Mortgage rates improved slightly.

Mortgage Rates Seek Holiday Cheer, November 28, 2010

The Turkey is gone, Black Friday has passed, and now the markets get ready for the final push of the year. Mortgage rates, which have seen a recent upward trend could use some holiday cheer.

New Home Sales Fall Back

New home sales unexpectedly fell in October, dropping back toward the record lows posted last summer, according to monthly figures released by the Census Bureau. 

Mortgage Rates Get Happy After Holiday, November 26, 2010

Mortgage rates are poised for improvement the day after the big feast,  US equity and bond markets will close early today, yet the shortened trading day is setting up for a a good one for mortgage rates as the stock market heads sharply lower.  With no economic data available today, traders of mortgage-backed securities (MBS) will be focused on news related to the debt crises in Europe.

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    No economic reports released today

Timing Your Mortgage Refinance

Timing is crucial when you’re planning a meal or planting that first kiss—and refinancing your mortgage. Unfortunately, you can’t always choose the right time to refinance. Sometimes the right time chooses you.

Saving money with a refinance

Conforming Loan Home Prices Decline

U.S. home prices fell again in the third quarter of the year, resuming a three-year downward trend following a brief uptick in the second quarter.

Mortgages to be Thankful For

Thanksgiving means more than turkeys, sweet potatoes, and pumpkin pie. It’s the time to express gratitude for all the blessings in your life. Here are six things in the mortgage industry to be grateful for.

Mortgage Rate Re-Pricing Alert 10:50 AM ET, November 24, 2010

Mortgage pricing is spiking higher from initial levels this morning as stocks have moved much higher on good economic data. This has led to a drop in mortgage-backed securities pricing.

Mortgage Rates Rise on Holiday Cheer, November 24, 2010

The day before the Thanksgiving Holiday is often filled with cheer as hopes for a positive shopping season and simply a positve sentiment influence markets.  Today, while filled with softer influences also provides plenty of hard data with joblesss claims, durable goods orders, consumer income and spending, new home sales and consumer sentiment numbers all being released today.

Mortgage Rate Trend Direction:     Up

Economic Reports/Rate Impact:    Jobless Claims, 8:30 AM ET, Moderate Rate Impact

Shadow Inventory Up 10 Percent

The “shadow inventory” of homes expected to eventually sell as distressed properties increased by approximately 200,000, or more than 10 percent over the past year, according to new estimates.

That means a bigger potential inventory that the housing market must work through before returning to normal levels of supply. All told, the total supply of unsold homes, including shadow inventory, would take 23 months to work through at current sales rates, according to financial data firm CoreLogic, which produced the report.

Home Purchase Applications Jump

Applications for mortgages to purchase a home were up sharply last week, rising a seasonally adjusted 14.4 percent to hit their highest level since last May. 

Home Equity for Technology Upgrades

In this market, your home may sit unsold for months. If you haven’t been keeping up with the latest in home technology, you may be looking at years instead of months, or be forced to drop your asking price.

Keeping technology current

Mortgage Rates Find Positives Despite Concerns, November 23, 2010

Mortgage rates have found some positive energy yesterday and appear headed for another positive day today despite fresh concerns that could impact the world economy.  The conflict between North and South Korea has increased fears that a war in this region could disrupt travel and distribution of goods.  Mortgage pricing will respond to the Korean situation as well as revisions to the third quarter Gross Domestic Product., existing home sales and the minutes from the last meeting of the Federal Reserve's Open Market Committee.

Existing Home Sales Decline

Existing home sales posted a small decline in October, following two consecutive months of substantial gains, according today’s monthly report from the National Association of Realtors. 

Mortgage Delinquencies Show Big Drop

Mortgage delinquencies fell by nearly 3.5 percent in the third quarter of the year, the biggest quarterly decline since the fourth quarter of 2006, according to figures released today by credit reporting company TransUnion. 

New Foreclosure Legal Help for Vets

Military veterans facing foreclosure or other legal problems are getting some new resources to help them get the information and help they need, including access to benefits and free legal help.
 
The new campaign, launched by the Department of Veterans Affairs (VA) and the Legal Services Corporation (LSC), will provide information about legal services and create appropriate referral services to help veterans deal with legal issues such as foreclosure, consumer fraud and employment issues.
 
The first phase of t

Weekly Mortgage Rate Review: Confusion Reigns, November 19, 2010

This week was filled with wild swings in mortgage pricing from Monday through Thursday. Thankfully Friday offered a brief respite as traders and analysts sought better data and information on which to base confident moves. The week offered generally mixed economic data and fresh international concerns in Ireland and China which provided the perfect breeding ground for volatility. In this market it appears that uncertainty is generally bad for mortgage rates---when in doubt raise rates seemed to be the default reaction of lenders.

 

Crossing the Home Loan Bridge

When Simon & Garfunkel lamented hard times in “Bridge Over Troubled Water,” they could easily have been referring to a mortgage instrument to help needy homeowners – the “bridge loan.”

Mortgage Rates Have Been a Turkey, November 22, 2010

Mortgage rates seek improvement this week before the Thanksgiving holiday.  Today has no official data to provide guidance so the news from Europe and China and the strong defense of the quantitative easing plan of the Federal Reserve by its Chairman Ben Bernanke will likely drive mortgage pricing today.

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    No official economic data released today.

Mediation Urged to Limit Foreclosures

The Department of Justice and HUD are promoting expanded use of third-party mediation as a way to prevent foreclosures, saying the approach has proven effective in states and municipalities where it has been tried.
 
More than 25 such programs have been created in at least 14 states, according to a new report from the two government bodies, with some boasting settlement rates of 70-75 percent that allow up to 60 percent of borrowers to reach settlements that allow them to remain in their homes.
 
Although not al

FTC Targets Foreclosure Relief Scams

A new rule protecting at-risk homeowners from foreclosure relief scams has been issued by the Federal Trade Commission. 

Private Loan Modifications Dominate

Government-backed mortgage loan modifications continued to decline in October, even as lenders increased the number of proprietary modifications conducted on their own terms.

Mortgage Rates Search for Terra Firma, November 19, 2010

Mortgage rates have taken all observers on an amusement park ride this week.  I wouldn't call the experience fun however.  New issues in Europe and inflation in China added to the mix of traditional market movers and every couple of hours something else took precedence in the minds of traders.  Today appears no less volatile to begin with hopes for improving rates by end of the day.

Mortgage Rate Trend Direction:    Neutral/Down

Economic Reports/Rate Impact:   No economic reports released today

Refinancing? Quick Credit Fixes

If it’s true that when it rains, it pours, homeowners are getting more than their fair share of inclement weather. There’s a new gloomy forecast – mortgage lenders are raising the bar on their standards. Again.

Mortgage Rates Rebound Sharply

Mortgage rates posted their first increase in two months this week, rebounding from record lows to jump two-tenths of a percentage point over concerns over inflation and signs of a strengthening economy. 

Tap Your Home Equity for Energy Efficiency

What do Brad Pitt, Ed Norton, Leo DiCaprio, and Rachel McAdams have in common? Besides being famous Hollywood personalities, all of them are dedicated environmentalists. And believe it or not, the Federal Housing Administration (FHA) wants you to join their ranks.

Mortgage Rates Continue Volatile Run, November 18, 2010

Mortgage rates continued their recent crazy intra-day moves yesterday. Improved rates in the morning gave way to a neutral position, then back to better and back to neutral again. Today appears more settled with data and news to provide guidance.

Mortgage Rate Trend Direction:     Up

Economic Reports/Rate Impact:    Jobless Claims, 8:30 AM ET, Moderate Rate Impact

Fed Exec: Reduce Gm't Mortgage Role

Saying government involvement in the housing market helped cause the recent economic collapse, the head of the Federal Reserve Bank of St. Louis today urged that the U.S. mortgage market be largely turned over to the private sector, with minimal federal involvement. 

Foreclosure, delinquency rates decline

Both mortgage delinquency and foreclosure rates declined in the third quarter of the year, even as the rate of new foreclosures showed an significant gain, according to figures released today by the Mortgage Bankers Association. 

Rates Jump, Mortgage Applications Fall

Mortgage applications plunged last week, after interest rates on fixed-rate loans jumped about two-tenths of a percentage point, according to figures released today by the Mortgage Bankers Association.

Mortgage Rates 101

American poet Robert Frost described education as “hanging around until you’ve caught on.” If “hanging around” has brought you here to learn mortgage rate basics, congratulations! You’re about to be educated.

Stability advantage

Mortgage Rates Make You Dizzy, November 17, 2010

Yesterday was a dizzying display of the vicisitudes of the market.  Trouble with European debt, inflation in China and quantitative easing in the US have created a volatile mix that is causing wild swings in mortgage-backed securities prices.  Today's news appears calmer and more positive for mortgage rates.

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Consumer Price Index, 8:30 AM ET, High Rate Impact

Robo-Signing Could Affect Loan Mods

The “robo-signing” foreclosure documentation scandal could make it easier for financially distressed homeowners to get a loan modification – if it doesn’t throw a wrench into the entire process first. 

Housing Starts Remain Weak

New home construction fell sharply in October, driven by a big drop in construction starts on multifamily housing such as apartment buildings and condominiums. 

Down Payment Help for FHA Loans

Gone are the days of no-down payment mortgages. As a result, people are turning to friends and family to help with the 20 percent down that most banks currently require.

According to the National Association of Realtors, 27 percent of first-time homeowners depended on gifts from loved ones to help cough up the necessary funds for down payments between July 2009 and July 2010. That’s the highest number in 20 years.

Mortgage Rate Re-Pricing Alert 3:450 PM ET, November 16, 2010

The waves keep rolling and mortgage prices keep changing. Mortgage-backed securities prices have reversed course once again and appear headed for a sharply higher close. This means that mortgage rates will likely finish the day better than yesterday. This has been one of the most volatile days of the year. Hang on!

Scandal a Sign of Deeper Problems?

The robo-signing controversy could be a sign of deeper problems within the mortgage industry, specifically that banks may have lost track of the legal documents needed to prove ownership of mortgage loans.

That might not only undercut their ability to foreclose on delinquent mortgages, but even could even raise questions about their right to collect payments on performing mortgages as well, according to a report released today by the Congressional Oversight Panel.

Mortgage Rates Spike, November 16, 2010

Wow what a crazy market!  Mortgage rates spiked yesterday as investors sold-off mortgage backed securities (MBS) due to fears that inflationary signs were emerging.  Today provides clear data on the inflation question with the release of the Producer Price Index, a measure of inflation in manufacturing.

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Producer Price Index, 8:30 AM ET, Moderate Rate Impact

Mortgage Rate Re-Pricing Alert 11:50 AM ET, November 16, 2010

The volatility of mortgage rates continues. Early pricing improvements have been completely wiped out and mortgage pricing is headed higher. Reports showing that inflation was not an issue and deflation may be a concern were completely overpowered by reports of major default risk from Ireland, Portugal and Greece. Additionally, fears that China will have to respond with interest rate hikes to slow inflation has created a confused market.

Mortgage Rates Seek Firm Start to New Week, November 15, 2010

New week, hopefully new results. Last week was painful for mortgage pricing after signs of inflation in China and a less than stellar beginning of the Fed's quantitative easing program of US Treasury secirities purchases.  Today begins a more traditional week with significant data available to provide guidance.  However, based on early results in mortgage-backed securities trading mortgage rates appear to be be heading higher yet again.

Mortgage Rate Trend Direction:     Up

Low Rates Expected Through 2011

Recent positive signs in the economy suggest that fears of a “double-dip recession have been largely overblown, although the recovery remains too weak to provide much of a boost for employment or the housing market. 

HELOC for a Rainy Day

When sunshine floods your life, preparation for a possible reversal of fortune seems miles away. But that’s the perfect time to get ready for days when financial troubles create downpours.

Weekly Mortgage Rate Review: Unexpectedly Ugly Week, November 15, 2010

This was the week that mortgage rates were supposed to improve due to the initiation of actual quantitative easing by the Federal Reserve.  Yet the leasson from this past week is clear:  sometimes reality plays out differently than we expect.

 

Week in Review

 

Mortgage Rate Re-Pricing Alert 11:40 AM ET, November 15, 2010

Mortgage-backed securities pricing has made a dramatic improvement over the course of the morning and is likely to move mortgage pricing lower than initial levels this morning. The reason appears to be a sense that the sell-off of last week and this morning were too large given current market conditions. The activity for the rest of the day will be interesting--will we begin to erase last week's pricing increase or just reset at last week's closing level?

Underwater Mortgages Still Increasing

The percentage of underwater homeowners continued to rise in the third quarter of the year, with nearly one-quarter of mortgage holders owing more than their property is worth.

Four Worst Reasons to Refinance Your Mortgage

The sting of regret runs deep. You know the feeling if you’ve ever bought a stock because it was hot, and then watched its value go tumbling down. A poorly planned mortgage refinance can end up the same way, and you could be a lot poorer and your ego a lot humbler.

Mortgage Rate Re-Pricing Alert 10:00 AM ET, November 12, 2010

Mortgage pricing is moving higher this morning in reaction to inflation fears, European debt fears and a smaller than expected purchase of US Treasury securities by the Federal Reserve today.

FHA to Offer New Home Energy Improvement Loans

A new program to help homeowners obtain low-cost loans to make energy efficiency improvements to their homes has been unveiled by the FHA and HUD.

Foreclosure Filings Drop in Wake of Robo-Signing Scandal

U.S. foreclosure filings fell by nearly 4½ percent in October, with a 9 percent drop in bank repossessions, as lenders sought to untangle the mess created by the recent “robo-signing” controversy. 

Honoring Veterans by Helping Them with Homeownership

Back in June of 1919, when World War I “officially” ended with the signing of the Treaty of Versailles, President Woodrow Wilson was looking for a way to honor veterans. Because fighting had actually stopped on “the eleventh hour of the eleventh day of the eleventh month” in 1918, he chose November 11th to be the day to celebrate our war heroes.

Mortgage, Other Deductions Targeted to Trim Deficit

The mortgage interest deduction could be trimmed or even eliminated under a set of proposals issued today by the co-chairs of a commission charged with finding ways to reduce the federal deficit.

Thank You Veterans--Market Closed For Veteran's Day, November 11, 2010

Mortgage-backed security markets are closed today in recognition of the Veteran's Day holiday in the US. Our very way of life is possible due to the sacrifices of the Veterans who have served, fought and died. We join the chorus of grateful American's and people around the world in saying, 'thank you for your service".

Fed Announcement Sends Mortgage Rates to New Lows

Mortgage rates fell again to new record lows this week, following the Federal Reserve’s announcement that it plans to buy $600 billion in Treasury bonds to boost lending and the economy. 

A Short History of Home Equity

What does movie meteorologist Todd Gross say when weather patterns foreshadow an unlikely set of circumstances in The Perfect Storm? “It would be a disaster of epic proportions. It would be...the perfect storm.” The U.S. housing crisis has been called a perfect storm in its own right, and home equity’s changing image has played a starring role.

Jumbo Mortgage Lending Up 20 Percent

Jumbo mortgages may be making a comeback, as lenders loosen their purse strings to approve more of the high-value home loans.

Mortgage Rate Repricing Alert, 3:30 PM, November 10, 2010

Rates are improving following an announcement by the Fed that they will purchase approximately $105 million of US Treasury securities through December. Improved pricing should hold through the market's close today.

Mortgage Rate Re-Pricing Alert 11:45 AM ET, November 10, 2010

Mortgage rates may rise this morning after very volatile trading. Early strength in mortgage-backed securities has given way to weakness after continuing worries about European debt and a corresponding rise in the value of the US dollar.

Purchase Applications Rise for a Third Week

Mortgage applications rose nearly 6 percent last week, as interest rates remained stable and borrowers showed increased demand for both home purchases and refinancing existing mortgages.

Applications for home purchase mortgages were up for a third consecutive week, posting a seasonally adjusted 5.5 percent increase, according to the weekly survey from the Mortgage Bankers Association. Purchase applications are up an average of 1.0 percent a week over the past four weeks and were 33.9 percent higher than the same week one year ago.

Mortgage Rates May Stop Rise, November 10, 2010

Mortgage rates have risen the past couple of days with a dearth of data and an abundance of critical commentary from international finance officials regarding US economic moves.  Today we get key economic data and will see an impact from fresh concerns about European debt issues.

Mortgage Rate Trend Direction:     Neutral

Economic Reports/Rate Impact:    Jobless Claims, 8:30 AM ET, High Rate Impact

Mortgage Rate Re-Pricing Alert 11:50 AM ET, November 9, 2010

Mortgage pricing may increase this morning from initial levels. The US dollar has risen in comparison to other curriencies this morning and mortgage-backed securities have lost value.

Using Home Equity for Small Business Loan

Small businesses are the backbone of the U.S. economy. According to the October 2010 “Facts and Trends,” which is published by the Federal Reserve Bank of New York, a small business is a privately-owned company that has fewer than 500 employees, and sales lower than $25 million annually.

Mortgage Rates Remain Steady, November 9, 2010

Today appears a lot like yesterday for the markets--not much data to provide guidance and no significant news to provide momentum. What news there is that could influence traders of mortgage-backed securities and therefore interest rates centers on the upcoming G-20 meeting in Seoul, South Korea.

Mortgage Rate Trend Direction:     Neutral/Up

Economic Reports/Rate Impact:    No economic data released today

Consumer Debt Down $1 Trillion Over Past Two Years

U.S. consumer debt continues to shrink, although at a somewhat slower pace than over the past two years, the New York Federal Reserve has reported. 

Home Prices Down Nearly 7 Percent Since August

U.S. home prices have taken a sharp downturn in recent months, plunging nearly 7 percent since hitting a recent peak in mid-August, according to a new report out today. 

Mortgage Rates Look for New Motivation, November 8, 2010

A new week finds market participants seeking to plot a course in a new environment--one in which political change in the US is certain and liquidity is increasing along with jobs in the economy.  Today, data is limited but mortgage pricing will likely be impacted by the news and the results of a Tresury Securities auction.

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    No economic reports released today

Protect Your Home From Hurricanes

Hurricane season is finally over. Whew! You can now go about your normal life for another six months without giving it a second thought. But maybe you should be thinking about it now, nonetheless. Just because your home is currently out of harm’s way, don’t neglect what needs to be done. If you wait until next hurricane season to fortify you residence, it may be too late. 

Top home improvements

Weekly Mortgage Rate Review: Turn Right and Hit the Gas, November 8, 2010

Well, Well, Well!  Voters and the Federal Reserve said clearly that we need strong action.  Voters turned out Democrats and elected Republicans in record numbers this week.  Coupled with a surprising Non-Farm Payroll report the result for mortgage rates was high volatility from Monday through Friday.  Let's look at the week...

 

Week in review

 

First-time Buyers Account for Half of Home Purchases

Fully half of all homes purchased over the past year were bought by first-time homebuyers, the highest level in at least 30 years of recordkeeping, according to new figures from the National Association of Realtors. 

Mortgage Rates Feel Reality's Bite, November 5, 2010

What a difference a day makes. Yesterday the markets were basking in the pure light of the elections and the certainty of easy money. Today, reality bites back. Don't get me wrong, news that the economy is growing is ultimately far more important than a few basis points in the cost for mortgages.

Mortgage Rate Trend Direction:     Up

Economic Reports/Rate Impact:    Non-Farm Payroll Report, 8:30 AM ET, High Rate Impact

Fed’s Cash Injection to the Economy Likely to Keep Mortgage Rates Favorable

Along with the election results, the big news of the week was the Federal Reserve’s November 3rd announcement that it will attempt to jumpstart the economy by purchasing another $600 billion in long-term Treasury bonds through mid-2011.

Five Ways to Reduce Stress with Low Interest Rates

Americans are stressed. More than 15 million have turned to yoga to help manage the tension from a sluggish economy, high unemployment, political turmoil, and financial woes. According to Dr. David Shukri of Providence Hospital in Southfeld, Michigan, “Americans work harder than any industrialized nation in the world.” And there’s very little relief from the stress. A study by Westin Hotels discovered that more than half of American workers fail to take all their vacation days, and 64 percent of their respondents have canceled vacations due to financial worries.

Pending Home Sales Slip But May Recover in 2011

Pending home sales posted another moderate increase in August, but still lag well behind their rate of one year earlier, according to figures released today by the N

Fixed Mortgage Rates Remain Steady

Fixed mortgage rates remained steady this week, according to the weekly Freddie Mac rate survey.

30-year fixed-rate mortgages averaged 4.24 percent, up slightly from the 4.23 percent they averaged last week. This is down from a 4.98 percent average at this time last year. Averages on 15-year fixed-rate mortgages dropped slightly to 3.63 percent from 3.66 percent last week. This is down from the 4.40 percent that they averaged at this time last year.

Mortgage Rates Like Clarity, Head for Records, November 4, 2010

The market has a much clearer look at the near-term future today in the aftermath of the US elections and the Fed's decision to purchase nearly a trillion dollars of US Treasury securities.  Clarity appears to be bringing confidence today that stocks will rise in value and that interest rates will fall to record levels.

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Jobless Claims, 8:30 AM ET, Moderate Rate Impact

Four Misunderstandings about Reverse Mortgages

If you’ve ever dissected your telephone bill, you know that it’s filled with a bucketload of charges that you never knew existed. You thought you were paying $XX per month, but when the bill comes, you’ll discover additional fees for universal service, subscriber line charges, and excise and communication taxes. If you call to complain, they’ll tell you that you misunderstood the way phone companies charge.

Renée Zellweger’s Apartment For Sale: Mortgage Breakdown

As reported by the New York Times, Renée Zellweger just put her New York City home on the market.

Mortgage Rates Digest Election, Anticipate the Fed, November 3, 2010

The mortgage industry will react to the reality of split government in the US early today as they also anticipate the Federal Reserve decision this afternoon on expanding its balance sheet.  Rates will likely anticipate good news until it hears otherwise.

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Factory Orders, 10:00 AM ET, Moderate Rate Impact

Serious Delinquencies Trending Down

Serious delinquencies among conforming mortgages have posted another monthly decline, continuing a trend since last February, according to new data from government-backed lenders Fannie Mae and Freddie Mac. 

Refinancing Declines for Third Straight Week

Mortgage refinance activity declined for the third consecutive week, as interest rates remained stable, according to this week’s market survey by the Mortgage Bankers Association. 

Home Ownership Rates Lowest in a Decade

The economy keeps hitting home for Americans—at least what used to be their homes.

According to a U.S. Census Bureau report released on Tuesday, home ownership remains at a low of 66.9%. The last time home ownership was this weak was nearly a decade ago in 1999 when it dropped to 66.7%.

Foreclosures, job losses, plunging prices, and a generally weak economy can take credit for these declining percentages. Despite low mortgage rates, it’s questionable whether home ownership rates will increase with continued high unemployment and consumer caginess.

Fed Expected to Announce New Stimulus Wednesday

The last time the Federal Reserve announced that it would make a big purchase of government securities to boost the economy, mortgage interest rates plummeted and homeowners rushed to refinance their loans. This time, the reaction might just be a big yawn. 

Fed Seeks to Give Economy a $600 Billion Jolt

As expected, the Federal Reserve announced today that it will purchase another $600 billion in long-term Treasury securities in an effort to boost the stagnant economy. 

Mortgage Rate Re-Pricing Alert 2:20 PM ET, November 3, 2010

The Federal Reserve as expected announced that it will pursue additional economic stimulus by purchasing long-term Treasury securities in amounts consistent with analyst expectations. Reaction was somewhat delayed, yet mortgage-backed securities pricing has declined from morning levels and will likely result in higher mortgage pricing.

Alternatives to Mortgage Loan Modification

If you’ve been unable to secure a mortgage loan modification, you may be humming bars from the ’65 hit single “Nowhere to Run” by Martha & the Vandellas. But rest assured -- modification isn’t the end-all solution to mortgage troubles. A permanent mortgage modification may not be available to you, so it’s important to know your next best option. You can then settle on an appropriate back-up plan. 

Temporary income loss

Last Chances to Refinance?

Being stuck in traffic is annoying. But it’s devastating if it gets you to the station at 10:26 AM for a train that was scheduled to leave at 10:25 AM. You stand there like a dummy, watching the train pull away – without you on it – and kicking yourself for not leaving a few minutes earlier.

Foreclosure Backlog Could Take Three Years to Clear

Clearing out the backlog of distressed housing inventory will likely take more than three years, dragging down housing prices and delaying the overall recovery of the housing market, according to a new analysis from Fitch Ratings.
 
With an estimated 7 million U.S.

Foreclosures Rise as Loan Mods Show Slight Decline

Slightly fewer homeowners were granted long-term foreclosure protection in September, at the same time the number of new foreclosures ticked upward as well. 

Mortgage Rates Vote for Change. November 2, 2010

Mortgage Rates are poised to drop modestly as a sign that traders view the changes expected today in the mid-term elections and tomorrow with the Federal Reserve's decision to pursue further purchases of US Treasury debt.

Mortgage Rate Trend Direction:     Neutral/Down

Economic Reports/Rate Impact:    No Economic Reports Released Today

Mortgage Rate Re-Pricing Alert 3:00 PM ET, November 2, 2010

Mortgage pricing has been very volatile today. Initial improvement gave way to a more neutral position while the afternnoon has sent us to an even better position than we saw early in the day. We really don't know what split government and more quantitative easing will bring. Perhaps the news that really matters won't even be know until Friday--the Non-Farm Payroll Report for October.

Residential Construction Rose in September

Residential construction spending picked up in September, increasing a seasonally adjusted 1.8 percent from August, according to figures released this morning by the Commerce Department. 

Mortgage Rate Re-Pricing Alert 11:00 AM ET, November 1, 2010

Better than expected manufacturing activity in the US, following on the heels of a similar report in China has hurt mortgage-backed securities prices. Mortgage pricing may worsen as signs of economic growth accelerating may shift investor focus and dampen the Federal Reserve's resolve for more fiscal stimulus.

Fixing Your Credit Report for Mortgage Lenders

When you’re applying for a mortgage refinance, there are many things that you can’t control, like the underwriters’ decision, the length of time your application will be stuck in a mortgage lender’s pipeline, and the amount of money the appraisal says that your home is worth. But one thing you can control is the accuracy of your credit report. This is essential, because errors could be detrimental to your profile as a good borrower, and possibly derail your ability to get the lowest available mortgage rate.

Mortgage Rates Want Clarity. November 1, 2010

With the US mid-term election now one day away today will not likely move too far from current levels.  Some data will be available to provide guidance to traders but no surprises are expected.  Rates will likely remain range-bound at least through Wednesday's Federal Reserve policy announcement with some improvement possible.

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Personal Income/Spending, 8:30 AM ET, Moderate Rate Impact

Weekly Mortgage Rate Review, October 29, 2010--"She Loves Me, She Loves Me Not"

Watching the mortgage market this week has been similar to watching a teenage boy playing that legendary game in which an innocent flower--a daisy by tradition--is destroyed one petal at a time. The purpose of the exercise is to determine whether the object of the flower plucker's affection shares the same emotions. In my version this week, traders of mortgage-backed securities (MBS) are the would-be lovers, the US Federal Reserve is the object of the affection and the MBS market itself is the flower.

New Appraisal Rules Could Help Free Up Lending

Along with tight credit and unstable home values, a new set of rules governing home appraisals have been blamed for making it hard to buy a home or refinance a mortgage over the past year. Now those rules are being replaced, which hopefully will lead to more accurate valuations and make home loans a bit easier to obtain as well. 

Mortgage Rates Seek Strong Finish, October 29, 2010

Following yesterday's strong activity in the mortgage-backed securities market, today begins with hopes for a strong finsih to the rocky week. An advance look at the third quarter GDP will be the primary guide to markets this morning.

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Advance GDP, 8:30 AM ET, High Rate Impact

Fixed Mortgage Rates: Trends and Outlook

Tarot cards may be great fun, but they won’t shed any light on the future of mortgage rates. If you want to know how rates are trending, slip on your reading glasses and start taking notes.  

Looking back

Housing Market a Drag on GDP Growth

The U.S. economy grew at a modest 2.0 percent annual rate in the third quarter of the year, but was restrained by weakness in home construction, the Commerce Department is reporting. 

Foreclosure Actions Up in Third Quarter

U.S. foreclosure activity increased in the third quarter of the year, with many metropolitan areas reporting double-digit percentage increases, including several in the hard-hit Florida market, according to figures released today by RealtyTrac.

Fixed Mortgage Rates Up Slightly

Fixed mortgage rates remained stable this week, easing up just slightly, according to the weekly Freddie Mac rate survey. 

Mortgage Rate Re-Pricing Alert 1:25 PM ET, October 28, 2010

Mortgage pricing is headed lower this afternoon following a strong auction of 7 Year US Treasury securities. The stock market has turned negative despite better than expected Jobless Claims figures this morning. Mortgage-backed securities have benefited from change in sentiment.

Be Wary of the Scary in Second Mortgages

During Halloween, everything spooky becomes kooky. From phony vampire blood, to skeletons trick or treating at your door, nothing is particularly scary on one day of the year – the 31st of October. The opposite, however, can be said about second mortgage loans every day of the year. While they don’t look dangerous on the outside, frightening things lurk below their non-menacing exterior.

What’s a second mortgage?
   

Mortgage Rates Like the News, October 28, 2010

Mortgage rates look for improvement today after several days of struggle given uncertainty related to next week's action by the Federal Reserve.  Today Jobless Claims data are poised to be the biggest driver of market activity.  Volatility has been high lately, but today appears to be beginning more settled.

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Jobless Claims, 8:30 AM ET, High Rate Impact

Mortgage Rates Caught in Waiting Game, October 27, 2010

Mortgage rates are caught in a waiting game this week.  Waiting for the results of two significant events: the mid-term Congressional elections and the expected initiation of asset purchases by the US Federal Reserve.  The result has been a choppy start to the week that appears likely to continue today.  Concerns over the size of the Fed's asset purchases seem to be the key driver of market activity today.

Mortgage Rate Trend Direction:     Up

Why Mortgage Rates Differ from Advertised Rates

In mortgage lending, what you see is not always what you get. The mortgage rates that are advertised by lenders aren’t always available to average consumers. Even so, there’s a very good reason not to ignore them. Understanding the assumptions behind advertised mortgage rates can help you budget your home loan more effectively.

New Home Sales Up, But Still Weak

New home sales edged up in September, but remain at their weakest levels in at least half a century, according to figures released by the Commerce Department today. 

Mortgage Applications Up Slightly

Mortgage applications for both refinancing and home purchases increased last week, as interest rates backed off a brief spike, according to the Mortgage Bankers Association. 

MBA: Fed Action Unlikely to Lower Mortgage Rates

Don’t expect to see any further declines in mortgage rates, despite whatever steps the Federal Reserve may take to boost lending and the economy.

Mortgage Rates Bounce Around, OCtober 26, 2010

Yesterday brought us continuing volatility in the mortgage-backed securities (MBS( markets. Today could continue the trend with stocks poised for a sharp decline at the market open, yet MBS also looking week due to a rise in the value of the US dollar. When financial instruments that typically move counter to each other are moving in the same direction (stocks and MBS), it can be a sign of a major change in direction ahead.

Mortgage Rate Trend Direction:     Up

Home Prices Show Signs of Cooling

Home prices continued to lose steam in August, posting their first decline in five months, according to the Standard & Poor’s/Case-Shiller monthly survey of 20 major U.S. housing markets. 

Understand Your Credit Score for a Mortgage Refinance

In Dancing with the Stars, celebrities are paired with professional ballroom dancers to compete for the highest scores for their weekly routines. If the celebrity trains hard and has some skill on the dance floor, he or she is likely to get a high score from the judges.

Mortgage Rate Re-Pricing Alert 2:45 PM ET, October 25, 2010

Mortgage rates are likely going to increase this afternoon following a sharp decline in mortgage-backed securities pricing. A stock market rally due to a lower value for the US dollar seems to be subsiding as well.

Financing Your Home Improvement Project

There’s good news afoot for home improvement contractors. According to the Leading Indicator of Remodeling Activity, home improvement projects will be seeing an upward trend in activity in 2011.

Mortgage Rates Guided by the Dollar, October 25, 2010

A sharp decline in the value of the US dollar is causing a strong reaction in both equity (stock) and debt (bond) markets.  Mortgage pricing appears headed lower as investors are encouraged about impending action by the the Federal Reserve to purchase US Treasury debt.

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Existing Home Sales, 10:00 AM ET, Moderate Rate Impact

Weekly Mortgage Rate Review, October 22, 2010

Mortgage rates were quite volatile this past week as markets reacted to various reports and comments regarding the probability of purchases of US Treasury debt by the Federal reserve.  Some data and earnings reports also had influence this past week, yet it was the expectations of further quantitative easing (QE) that provided the energy.

 

Week in review

 

Deficit Panel May Suggest Trimming Mortgage Deduction

The mortgage interest tax deduction could fall victim to efforts to reduce the federal deficit, the Wall Street Journal is reporting.

Home Sales Up 10 Percent in September

Existing home sales rose 10 percent in September, a second consecutive monthly increase although the housing market remains weak overall. 

Mortgage Rates Remain "In the Zone", October 22, 2010

Mortgage rates remain "In the Zone" today. The zone is the neighborhood of all-time lows. With little data to guide markets today, mortgage pricing is not likely to see much movement. Some upward pressure could result in marginal price increases.

Mortgage Rate Trend Direction:     Neutral

Economic Reports/Rate Impact:    No economic data released today

Mortgage Bankers and Brokers: Which One's for You?

A treasure hunt is a game in which players receive a variety of clues in a quest to find something of value. Shopping for a home loan can be like a treasure hunt. Before you can find your treasured mortgage, you’ll first have to find a mortgage lender who’ll provide the best rates, and also be trustworthy and easy to work with. On your quest, one of the clues that you’ll need to decipher is whether you want to work with a mortgage broker or directly with a bank.

Advantages of mortgage brokers

SF Bay Area Tops List of Hot Housing Markets

The San Francisco area continues to have some of the hottest real estate markets in the nation, topping a list of places where homes are selling for more than the asking price. 

Mortgage Rates Stay In Sweet Spot, October 21, 2010

Golfers talk of hitting the ball with the "sweet spot" of the club--that perfect part of the club that leads to maximum distance on the shot. Mortgage rates are in a "sweet spot" at the moment where further drops are possible. Today however rates are likely to be neutral to slightly higher at the open of trading.

Mortgage Rate Trend Direction:     Neutral/Up

Economic Reports/Rate Impact:   Jobless Claims, 8:30 AM ET, High Rate Impact

Freddie Mac Reports Small Rise in Mortgage Rates

Mortgage rates rose slightly this week, according to today’s Freddie Mac weekly rate survey, easing off last week’s record lows. 

Fed Sees Pockets of Improvement in Housing, Mortgage Markets

The Federal Reserve’s most recent snapshot of the economy shows housing and mortgage markets that are generally stagnant, although with a few areas showing signs of improvement. 

Protecting Women from Mortgage Disaster

Calling all women! There’s a little known fact that can have devastating consequences if you’re not adequately protected. If your name is not on the promissory note along with your husband’s when a mortgage loan or refinance closes, you’re potentially jeopardizing your financial security, and will have no defense against a possible foreclosure.

Seven Reasons to Pay Off Your HELOC

When Dire Straits sang about “Money for Nothing” in the ‘80s, the British rock band couldn’t have known it was almost a prediction. Today’s rock-bottom interest rates may be tempting you to borrow more against your HELOC, but think twice -- and maybe three or four times -- before doing it. Even in this low-interest rate environment, there are good reasons to pay off your HELOC balance once and for all.

More financial stability

Mortgage Rate Re-Pricing Alert 11:45 AM ET, October 20, 2010

Mortgage pricing may improve as the mortgage-backed securities (MBS) market has turned from early negative trading. A movement lower in the US Dollar versus other currencies is credited with causing the movement in MBS.

Mortgage Defaults Lowest in Over Two Years

Mortgage default rates fell to their lowest levels in over two years in September, amid a general decline in consumer credit defaults, according to new figures from Standard & Poor’s and Experian.

Mortgage Rates Post First Increase in Six Weeks

Mortgage interest rates jumped last week, posting their first increase in six weeks and cooling demand for new mortgages. 

Feds Open Investigation Into Robo-Signing Controversy

A federal task force is reported to be looking into whether mortgage companies may have committed fraud or violated other federal laws by falsifying documentation used in home foreclosures. 

Mortgage Rates Find a New Neighborhood, October 20, 2010

Mortgage-backed Securities (MBS) are moving into a new neighborhood that could allow rates to reach new lows. Today rates may bump slightly higher, however, in response to US corporate earnings news,

Mortgage Rate Trend Direction:     Up

Economic Reports/Rate Impact:    Fed Beige Book, 2:00 PM ET, Moderate Rate Impact

Single-Family Housing Starts Increase

Construction starts on single-family homes perked up in September, but continue to trail their levels of one year ago. 

Challenges of VA Loans

Illinois Congressman Dan Lapinski once said, “On the battlefield, the military pledges to leave no soldier behind. As a nation, let it be our pledge that when they return home, we leave no veteran behind.” The American desire to take care of its veterans dates back to 1636. The Pilgrims were at war with the Pequot Indians, and they passed a law that their colony would take care of all disabled soldiers. And in this spirit, the Department of Veteran’s Affairs (VA) guarantees home loans for military men and women.

Mortgage Rates Respond to Earnings, October 19, 2010

Today a plethora of earnings reports give a picture of how well American corporations are handling the choppy economic conditions.  Mortgage pricing improves when investments in mortgage-backed securities (MBS) are more popular than other investment alternatives.  Stocks are likely going to open sharply down, yet mortgage pricing seems to be heading for a neutral open.  The pace of stock losses could ultimately move mortgage rates down later in the day.

Mortgage Rate Trend Direction:     Neutral

Mortgage Rates Move on Comments, October 18, 2010

Mortgage rates are moving this morning based on comments from Dallas Federal Reserve President Richard Fisher.  Responding to Fed Chairman Bernanke's comments from Friday, President Fisher expressed doubts that action by the Federal Reserve alone could solve US economic woes.  Data later in the morning may offer a more lasting motivation for markets.

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Industrial Production, 9:15 AM ET, Moderate Rate Impact

Looking for a San Francisco Bank Alternative? Try a Credit Union!

Large commercial banks have been getting press as the bad guys of the mortgage industry. Some critics have cited them for being partly responsible for the recent collapse of the mortgage market. From the looks of things, it would seem as if these bankers would be sulking with their tails between their legs. But they’re not. While ordinary Americans are jobless and stifled by a 10 percent unemployment rate, employees of U.S.

Past-Due Mortgages Edged Up in September

The percentage of homeowners who are behind on their mortgage payments edged upward in September, according to preliminary figures released by Lender Processing Services (LPS). 

Homebuilders See Slight Improvement in Market Conditions

Homebuilders are seeing a slight improvement in market conditions, although their outlook for the months ahead remains strongly pessimistic, according to new figures released today. 

Weekly Mortgage Rate Review: The "Oracle" Speaks, October 15, 2010

Some market observers have called Federal Reserve Chairman Ben Bernanke "the Oracle" for the likliehood that his words will accurately foretell the future with regard to the US economy and action by the Federal Reserve.  In ancient Greece leaders would consult with oracles such as the Oracle at Delphi prior to making major decesions that affected the State.  In this case our oracle is even more powerful.  Not only is Chairman Bernanke wise in economic policy and theory, but he is also the leader of the decision-making body.  

Mortgage Rates: The Chairman Speaks and Data Flows, October 15, 2010

Chairman of the Federal Reserve, Ben Bernanke spoke this morning and gave markets clear evidence of Fed action in the near term.  Also, economic data provided a picture of economic growth in the US that is sustainable but relatively weak.

Mortgage Rate Trend Direction:     Neutral/Up

Economic Reports/Rate Impact:    Retail Sales, 8:30 AM ET, High Rate Impact

Help for Homeowners with Second Mortgages

Second mortgages have been a fickle friend to U.S. homeowners. First they freed-up cash, but then they became an increasing burden as unemployment rose, and home values faltered.

Help for your second mortgage is out there, but be ready to do some legwork to find it. First, get to know the Second Lien Modification Program (2MP), which works with President Obama’s Home Affordable Refinance Program (HAMP). While 2MP has been slow to assist homeowners since its 2009 launch, it’s gaining traction with a growing list of participating servicers. 

Refinancings Boost Quicken to Mortgage Record

Quicken Loans reports that it closed the largest volume of mortgage loans in the company’s 25-year history in September, with approximately 15,500 home loans totaling $3.4 billion in loan volume.

Foreclosures Top 100,000 for First Time

The number of homes lost to foreclosure topped 100,000 for the first time in September, as lenders continued to work through a backlog of distressed properties. 

Mortgage Rates Hit Lowest in Six Decades

Mortgage rates fell to their lowest level in nearly 60 years this week, with average rates on 30-year fixed-rate loans falling to 4.19 percent, according to the current Freddie Mac survey. 

Mortgage Rates Keep the Faith, October 14, 2010

Mortgage rates are likely to keep their position near record lows today as economic data raflects an economy that is continuing to slow.  Anticipation of action from the Federal Reserve helps mortgage-backed securities traders keep the faith and yeilds low.

Mortgage Rate Trend Direction:     Neutral/Down

Economic Reports/Rate Impact:    Producer Price Index, 8:30 AM ET, Moderate Rate Impact

Make a HELOC Work for You

When you purchase a new appliance, it comes with a manual that explains all the dos and don’ts of operating the equipment so you can tailor its functions to serve your needs. When you shop for a home equity line of credit (HELOC), you’ll need to know the ins and outs before you commit, because you’ll find no manual attached to your closing documents. However, if you know what to look for, you’ll know how to tailor a HELOC that’s right for you.

What’s a HELOC?

Falling Rates Spark Renewed Interest in Refinancing

Applications to refinance existing mortgages surged last week, after weeks of decline despite falling interest rates, according to new figures from the Mortgage Bankers Association. 

Freddie Mac: Low Rates Likely to Stick Around

Mortgage rates will likely remain below 5 percent for about another year, but should gradually start rising toward that mark as economic growth picks up and home sales rebound, according to the latest Freddie Mac economic forecast. 

Find the Right Term for your Mortgage Refinance

There are many terms to describe the process of refinancing your home. Cumbersome and stressful are two that come to mind. But there’s another type of term that you should focus on -- the one that determines when you’ll finally be debt-free.

All 50 State Attorneys General Join Foreclosure Probe

State attorneys general in all 50 states are launching a coordinated investigation into whether lenders misrepresented foreclosure claims through a practice known as robo-signing. 

Mortgage Rates Import Direction, October 13, 2010

This week has been slow for mortgage rates with the Columbus Day Holiday on Monday, followed by no economic data yesterday. Today Import Prices are released by the Department of Labor and will provide evidence of whether inflation is present in the market.

Mortgage Rate Trend Direction:     Neutral/Up

Economic Reports/Rate Impact:    Import Prices, 8:30 AM ET, Moderate Rate Impact

Mortgage Rates React to the Minutes, October 12, 2010

Today markets are poised to respond to the minutes of the Federal Reserve's Open Market Committee. Speculation is that it will provide further evidence of their intention to add to their balance sheet through the purchase of US Treasury debt through a practice known as quantitative easing.

Mortgage Rate Trend Direction:     Neutral/Down

Economic Reports/Rate Impact:    No Economic Data Released Today

California Has Six of 10 Priciest Home Markets

California has the nation’s most expensive real estate markets, with four of the five highest average listing values, and six of the highest 10, according to recent figures from Coldwell Banker.

Most Affordable Time in 40 Years to Buy A Home

U.S. home affordability is at its highest level in more than 40 years, according to a new assessment from Beacon Economics. 

San Francisco: A Mecca for Mortgage Fraud

San Francisco has a lot to boast about. In addition to its 3,480 acres of parks, 2,870 bars, and a bridge of renowned beauty, it’s one of the most expensive housing markets in America, and one of the top five cities with the highest credit scores. It’s not a cheap city in which to live, but residents wouldn’t give it up for the world—well, maybe the World Series.

With all its affluence and beauty, the San Francisco Bay area is also one of the most popular places nationwide for home equity fraud.

Mortgage Rates: "The Pause That Refreshes"?, October 11, 2010

Happy Columbus Day! Perhaps using a Coca-Cola slogan from 1929 is not the best thing to do in a column that tries to anticipate the direction of financial markets.  Yet, today with US debt markets closed, we are indeed taking a break.  Rates could still move today as lenders anticipate market activity later in the week.

Mortgage Rate Trend Direction:     Neutral/Up

Economic Reports/Rate Impact:    No reports released today.  Federal Offices closed.

Weekly Mortgage Rate Review--"Visions of Sugar Plums Danced in their Heads", October 8, 2010

It's not Christmas yet, but Wall Street traders are having visions of gifts dancing in their heads.  With the expectation of further purchases of government debt securities by the US Federal Reserve Bank (quantitative easing), traders have been driving mortgage-backed securities prices down.  This led mortgage rates to new all-time lows this week with most lenders offering the best customers rates below 4.0%.  Let's see how it played out.

 

Week in review

 

HUD Seeks to Force Lenders to Repay Mortgage Losses

The U.S. Department of Housing and Urban Development (HUD) is seeking new authority to require lenders to repay the government for losses on FHA loans that did not meet the agency’s guidelines. 

Conservative Mortgage Ideas to Save Anyone Money

Elections can be polarizing, especially when each side does its maximum to minimize their opponent’s strengths. When it comes to saving money and getting great deals, though, it doesn’t matter whether you’re a Democrat or a Republican. Both parties boast conservatives, who often have goals of cutting costs and saving money. No matter what your political affiliation is, if you want to keep financial surprises to a minimum and get the best deals around, here are some conservative ideas to help you manage your mortgage.

Get it fixed

Weak Jobs Report Could Spur Fed to Action

Employment fell by 95,000 jobs in September, as a modest rise in private-sector hiring was wiped out by layoffs of Census workers and by local governments, according to the latest figures from the Labor Department. 

Mortgage Rates Move to New Lows, October 8, 2010

How low can they go?  Mortgage rates have reached new historic lows and are poised to reach even better levels today.  The all-important Non-Farm Payroll report has clearly demonstrated that the US economy is slowing from already sluggish levels and is in danger of falling back into recession.

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Non-Farm Payroll Report, 8:30 AM ET, High Rate Impact

Bank of America Suspends Foreclosures in All States

Bank of American announced today that it is suspending foreclosures in all 50 states, the first major lender to do so in the wake of the growing foreclosure documentation scandal. 

Mortgage Rates At All-time Lows, October 7, 2010

Mortgage rates have reached new all-time lows as concerns over the direction of the US economy have persisted.  However, jobless claims and the beginning of earnings season could move the markets.  The question is will the move be up or down?

Mortgage Rate Trend Direction:     Neutral

Economic Reports/Rate Impact:    Jobless Claims, 8:30 AM ET, High Rate Impact

Mortgage Rates Still Falling

Mortgage rates continue to fall, hitting record lows for both fixed- and adjustable rate mortgages in the weekly Freddie Mac survey. 

Fewer Delinquencies, But More Foreclosures

New loan modifications and the number of serious mortgage delinquencies both fell in August, even as foreclosures were on the rise, according to figures released today by the Hope Now Alliance.

Foreclosure Freeze Said Not Likely to Boost Home Prices

Quarterly home prices fell slightly in September, suggesting a possible early start to the usual market slowdown of fall and early winter, according to the real estate data company Clear Capital. 

Introduction to Jumbo Mortgages

You won’t bump into a jumbo mortgage at a cocktail party, but your lender might be able to arrange an introduction. If so, be prepared to meet a real estate loan that’s suffering from a jumbo identity crisis.

Theory and practice

Texas AG Orders Halt to Foreclosures

The Texas attorney general has ordered a suspension of foreclosures in that state as part of an investigation into widespread reports that lenders routinely failed to properly document their claims in repossessing residential properties.

Purchase Applications Rise Ahead of FHA Changes

Mortgage applications for buying a home rose last week to their highest level since the end of the homebuyer tax credit program, according to survey figures from the Mortgage Bankers Association (MBA). 

Mortgage Rate Re-Pricing Alert 1:45 PM ET, October 6, 2010

Mortgage pricing may improve further as mortgage-backed securities (MBS) have extended their gains from early this morning. The poor result from the ADP Payroll report and concerns over world currency values have traders seeking safety in bonds and MBS.

How FHA Loans Can Help You

America has always been considered the land of opportunity. But if you don’t have great credit or money to contribute to a down payment, you may feel that the opportunity to buy a home is passing you by. But there’s good news that you might not know about, and it’s called the Federal Housing Administration (FHA), which was created in 1934 during the Great Depression to stimulate the housing market.

Mortgage Rates Hold Levels Despite Stock Rally, October 6, 2010

Today is going to be an interesting day in the markets with only one, unofficial economic report being released.  Yesterday, mortgage rates held near all-time lows despite a big rally in stocks.  Activity by cnetral bankers around the world in support of their currencies are likely to move markets.

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    ADP Payroll Report, 8:15 AM ET, Low Rate Impact

Cash-out Refinancing Credit Traps

Once upon a time in the not too distant past, homeowners could snap their fingers and withdraw money from the unused equity in their properties via a cash-out refinance. Since the mortgage crisis, however, doing a cash-out finance has become more like a fairy tale -- both Fannie Mae and Freddie Mac have reported that the numbers for cash-out refinancings have recently hit record lows.

Homes for Sale Jump in San Francisco

Housing inventories rose in September for the ninth consecutive month, including sharp increases in San Francisco, Las Vegas, Los Angeles and several other metropolitan areas that were hardest hit by the collapse of the housing market.
 
The San Francisco area posted the sharpest one-month increase in homes for sale, a 5.4 percent rise from August. Las Vegas was close behind with a 5.3 percent gain, followed by Los Angeles at 4.6 percent. The Phoenix metropolitan area was not far behind at 4.2 percent.

Mortgage Rates Secure for Now, October 5, 2010

Mortgage rates appear secure close to their current position today.  Action by the Bank of Japan will likely be the key driver of market activity today.  Service sector data due out this morning will also have a say in mortgage rate dorection today.

Mortgage Rate Trend Direction:     Neutral/Up

Economic Reports/Rate Impact:    ISM Services Index, 10:00 AM ET, Moderate Rate Impact

San Francisco Avoids Worst of Mortgage Delinquency Rise

Everyone knows the California real estate market has been pummeled in recent years. But San Francisco Bay Area, at least, seems to be holding its own among the nation’s major metropolitan areas when it comes to serious delinquencies and foreclosures. 

Getting to Know the Federal Reserve Bank of San Francisco

When ordinary people think of the Federal Reserve, they imagine a wizard hiding behind a curtain in Washington, D.C., who has his hands on the pulse of our monetary system and the power to make interest rates rise or fall. In reality, the Federal Reserve is the central bank of the U.S., and consists of a Board of Governors and 12 regional banks that are situated throughout the country.

Mortgages Reach for History, October 4, 2010

Mortgage rates may set new all-time lows this week with any improvement.  Today data may provide the impetus to move rates into record territory with the release this morning of factory orders results and pending home sales.

Mortgage Rate Trend Direction:    Down

Economic Reports/Rate Impact:   Factory Orders, 10:00 AM ET, Moderate Rate Impact

Weekly Mortgage Rate Review, October 1, 2010

Mortgage rates reclaimed all-time low status this week as we entered the duldrums of the economic/political season.  With economic data mixed, pointing no clear end to the recent slowdown and policy questions still unanswered prior to the US mid-term elections, uncertainty ruled the week.  As has been the norm since the economic crisis began in late 2007, uncertainty and mixed data is interpreted by the markets as a negative sign for the future. This is good for mortgage rates. Lets review the week in mortgage rates.

Pending Home Sales Show Gradual Rise

Pending home sales posted another moderate increase in August, but still lag well behind their rate of one year earlier, according to figures released today by the National Association of Realtors (NAR). 

Foreclosure Documentation Crisis Could Cloud Title for Homebuyers

Thousands of homeowners and investors who purchased foreclosed properties during the current downturn could find their ownership in question owing to growing concerns over improprieties in how those foreclosures were handled. 

Legislation Would Ban Controversial Transfer Fees

Should real estate developers and investors get paid off every time a property they created changes hands? That’s the basic question behind legislation introduced this week in Congress that would ban a controversial practice known as real estate transfer fees.

Mortgage Rate Re-Pricing Alert 10:00 AM ET, October 1, 2010

Mortgage pricing may improve following a rally in mortgage-backed securities. The ISM Manufacturing Index showed another drop in activity for the past month offsetting more positive data early in the day.

Four Popular Reasons to Tap Your Home Equity

According to the Board of Governors of the Federal Reserve, total mortgage debt for the second quarter of 2010 was $14,019,735,000,000. That’s a lot of zeros. Add that to the total debt per person of $10,168 -- not including mortgages and home equity loans – and you can conclude that Americans are big-time debtors.

Foreclosures Nearly One-Quarter of All Home Sales

Nearly a quarter million homes in some stage of foreclosure were sold to new owners in the second quarter of 2010, accounting for nearly one-fourth of all home sales. 

Mortgage Rates Head Up on Reports, October 1, 2010

Friday's are usually interesting days for mortgage rates.  Often rates will move in one direction initially then ease back to neutral by the end of the day.  Today that initial direction for rates will be up in response to personal income and spending reports.

Mortgage Rate Trend Direction:     Up

Economic Reports/Rate Impact:   Personal Income, 8:30 AM ET, Moderate Rate Impact

Second Lender Halts Foreclosures Over Document Issues

JP Morgan Chase has announced it is temporarily suspending foreclosures, becoming the second major bank to do so over concerns about improperly signed affidavits. 

Tax Consequences of a Second Mortgage

Everyone loves to hate income taxes. So one aspect of the U.S. tax code that’s enormously popular is the mortgage interest deduction, which provides sizeable tax breaks on first and second mortgages.

Mortgage deduction basics

Mortgage Rate Re-Pricing Alert 2:40 PM ET, September 30, 2010

Mortgage pricing has improved this afternoon. Mortgage-backed securities prices have returned to neutral for the day after showing a step decline early this morning. Analyst credit the reversal in the stock market for the change. Traders appear to have cashed in the gains that were achieved in early trading today after three positive economic reports.

Mortgage Rates Move on Better News, September 30, 2010

The markets and in-tun, mortgage rates respond to new economic data.  Good news for the economy is typically bad for mortgage rates and vice versa.  With two key economic reports released today signaling better than expected news, rates are headed up.

Mortgage Rate Trend Direction:     Up

Economic Reports/Rate Impact:    Final GDP, 8:30 AM ET, High Rate Impact

Mortgage Rates Continue to Fall

Mortgages interest rates hit record lows again this week, according to the Freddie Mac Primary Mortgage Market Survey.
 
Average interest rates on the 30-year fixed-rate loan dropped to 4.32 percent, matching the record low set four weeks ago, and the 15-year fixed-rate loan fell to 3.75 percent, a new record low.

Home Purchase Mortgage Applications Edge Up

Mortgage rates continued to fall to new lows last week, accompanied by a small increase in the number of people seeking to buy a home. 

S&P Survey Suggests Softening Housing Market

Annual gains in home prices have slowed in recent months, raising concerns over possible weakening of the housing market. 

HUD Help for Seniors: A Lower-Cost Reverse Mortgage

When William Shatner played Captain Kirk on the Starship Enterprise, he was a young hunk guiding people to “boldly go where no man has gone before.” Now, the 79-year old senior citizen is guiding people to better financial sense by saying, “If saving money is wrong, I don't want to be right!” The Federal Housing Administration (FHA) must be listening, because they’ve just lowered the upfront costs of reverse mortgages, which will help seniors save money when they tap their home equity.

Understanding reverse mortgages

Mortgage Rates Approach Records--Again, September 29, 2010

Mortgage rates being offerred by the largest lenders to the best borrowers are approaching the all-time lows they reached in late August.  Two reasons seem to explain the drop: the possibility of more quantitative easing by the Fed and a lack of borrowers at higher rates.  Today should not see much movement in mortgage rates.

Mortgage Rate Trend Direction:     Neutral

Economic Reports/Rate Impact:    No Official Economic Data Released Today

Mortgage Rates Still Excellent, September 28, 2010

Mortgage Rates appear headed for slight improvement at initial pricing this morning.  The stock market is opening down while mortgage-backed securities are popular this morning.  Limited data will be available to guide markets today.

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Consumer Sentiment, 10:00 AM ET, Moderate Rate Impact

Survey Shows Big Gap in Credit Scores

There’s a big gap among Americans when it comes to credit worthiness and the ability to obtain mortgages and other consumer loans.

Minneapolis, Midwest Have Best Credit Scores

If you’re looking for a mortgage or other type of loan, it might not hurt to be from Minneapolis, at least on average.

Taking Advantage of a Cash-in Refinance

When retail stores open early on Thanksgiving weekend, bargain hunters line up for hours to take advantage of great deals. If you follow the trend of those in the know, you, too, can find great opportunities. Mortgage industry professionals are noticing a trend that can help borrowers who have a chunk of cash in the bank get a great deal, as well – the cash-in refinance.

The trend is your friend

No Promises in Mortgage Loan Modification

President Obama’s mortgage modification program has reached out to distressed homeowners, but it’s left many of them with nothing but broken promises.

Chicago Home Sales Post Small August Gain

Chicago-area home sales inched up in August, but barely made a dent in the sharp dropoff that followed the end of the homebuyer tax credit program. 

Weekly Mortgage Rate Review--Economy Putting One Foot in Front of the Other, September 24, 2010

The US economy's movement can be described as "putting one foot in front of the other".  While it may not be pretty and may more closely resemble a sailor staggering back to the ship following a night of liberty, the direction is definitively forward.  There are continuing signs that markets are moving in a sustainable direction over the mid-to-longer term.  For stocks this means higher levels.  For mortgage-backed securities (MBS) this means lower levels.  Mortgage rates still appear headed higher. 

Mortgage Rates Head Down to Start the Week, September 26, 2010

Mortgage rates seem to want to head lower to begin the week.  Most economic data will come toward the end of the week.  Today appears to be a "trader's day", trading the opposite of recent trends to generate more commissions.

Mortgage Rate trend Direction:     Down

Economic Reports/Rate Impact:   No economic reports released today

New Foreclosures Down, Mortgage Performance Steady

New foreclosures initiated in the second quarter of the year were at their lowest rate since the final months of 2008, according to a new government report issued today. 

New Home Sales Unchanged in August

New home sales remained flat in August, with the seasonally adjusted rate unchanged from July, according to estimates released this morning by the Commerce Department. 

Mortgage Rates Guided By Durable Goods, September 24, 2010

Durable goods orders and existing real estate sales will provide direction to the markets and mortgage rates today. Additionally, analysts will watch the currency markets for signs of Japanese intervention to support the yen.

 

Mortgage Rate Trend Direction:     Up

Economic Reports/Rate Impact:    Durable Goods Orders, 8:30 AM ET, Moderate Rate Impact

Home Equity Loan vs. HELOC: Know the Differences

Before any big fight, boxing fans will size up the contenders on strength, size, and endurance. You should do the same when you step up to the ring to convert your home equity into cash.

Mortgage Rates Largely Unchanged This Week

Mortgage rates were largely unchanged this past week, despite signals that the Federal Reserve may take new steps to reduce the cost of credit and boost the economy. 

Existing Homes Sales Trend Upward

Existing home sales in August regained some of the ground they lost the previous month, rising 7.6 percent to a seasonally adjusted annual rate of 4.13 million, according to figures released this morning by the National Association of Realtors. 

New MHA Trial Modifications Inch Up

The number of homeowners receiving permanent loan modifications under the government’s Making Home Affordable Program continued to shrink in August, even as the number of new admissions to the program ticked upward for the first time in nearly a year.
 
According to the government’s monthly Housing Scorecard and Making Home Affordable (MHA) program report, 33,342 homeowners were approved for permanent loan modifications in August, down from 36,695 the month before.
 
At the same time, the number of n

Mortgage Rates Are Expecting Poor Data, September 23, 2010

A good cross-section of economic data will be available today to guide markets.  Additionally, comments from investor Warren Buffet and from Chinese Premier Wen Jiabao could impact markets and mortgage rates today.

 

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Jobless Claims, 8:30 AM ET, High Rate Impact

Protection from Reckless Mortgage Lenders

In every shipment of McIntosh and Granny Smith, there’s bound to be a few bad apples. Finding them can be challenging, though, because they’re well hidden among many good pieces of fruit. It’s the same situation when it comes to mortgage lenders. While an overwhelming majority of them are honest, there are bad apples in the group, and the Federal Housing Administration (FHA) is having trouble weeding them out.

Fed Hints at Economic Stimulus

The Federal Reserve is hinting it may soon take new steps to inject more cash into the economy if the weak recovery falters and deflation becomes a threat. 

Mortgage Applications, Rates Both Decline

Mortgage application activity has fallen for the third consecutive week, despite declining interest rates that are at or near record lows. 

FHFA Reports Home Prices Fell in July

U.S. home prices fell half a percent from June to July, according to new figures from the Federal Housing Finance Agency. 

Simplified Mortgage Disclosures is Warren's Goal

Simplifying mortgage disclosure forms so that borrowers get a clearer picture of the costs and obligations involved will be a primary goal of the new Consumer Financial Protection Bureau and Elizabeth Warren, the consumer advocate appointed to oversee its creation. 

Small Home Improvements Make a Big Difference

“Save money, don’t spend” is the current American mantra. With the housing market in a slump, the unemployment rate hovering at 10 percent, and significant loss of value in most homes, it’s difficult to spend money on anything but necessities. Is that home renovation you’ve been dreaming about light years away? Don’t give up -- with a little creativity, you can spend a relatively small amount of money and make significant changes to your environment.

Lighting up your life

Mortgage Rates Respond to Fed, September 22, 2010

The Federal Reserve's statement yesterday that it is willing to consider additional purchases of US Treasury debt is the dominant driver of market activity today.  This practice is known as quantitative easing and should drive mortgage rates lower.

 

Mortgage Rate Trend Direction:    Down

Economic Reports/Rate Impact:   No Economic Reports Released Today

Housing Starts Rose in August

New housing construction starts rose 10.5 percent in August, exceeding economist’s projections and raising hopes the market may be coming back from last summer’s declines. 

Are You a Candidate for a 15-Year Mortgage?

The old saying that bigger is better doesn’t always hold true when it comes to mortgage terms. In the past, many financial planners discouraged choosing a 15-year mortgage over a 30-year one for two very good reasons. First, your monthly payment would be much higher with the shorter term. And second, your money would be locked up in mortgage payments, which meant that if, heaven forbid, a financial emergency occurred, you might be short on funds.

Mortgage Rates Move with Housing Data, FOMC Comments, September 21, 2010

Mortgage rates will have early directional guidance from housing starts data.  This afternoon the Federal Reserve Open Market Committee will release a statement that will impact mortgage rates.

 

Mortgage Rate Trend Direction:         Down

Economic Reports/Rate Impact:        Housing Starts, 8:30 AM ET, High Rate Impact

GMAC Denies Halting Foreclosures in 23 States

GMAC Mortgage is denying a report that it has suspended foreclosures in 23 states, saying all new foreclosures are continuing as usual. 

Mortgage Rate Re-Pricing Alert 2:20 PM ET, September 20, 2010

Mortgage pricing is improving this afternoon following comments from President Obama.  The President did not signal any new policies or strategies to address the economy. The result is a mixed market--higher stocks and higher bond yeilds. That is contrary to the common relationship between these two investment classes and indicates uncertainty.  I would not be surprised for mortgage pricing to move back towards neutral by the end of the day.

Home Builders Remain Pessimistic

Homebuilders remain pessimistic about the outlook for their industry, overwhelmingly viewing market conditions over the next six months as poor. 

Fall Popular Season for San Francisco Homebuyers

Fall is in the air. Time for football, pumpkins, hayrides and – at least in the San Francisco area – shopping for a home.

Celebrity Real Estate Meltdown: Learn How to Sell Your Home

If you’re selling your home, you may have a lot more in common with Jamie Dimon, Chairman and CEO of JPMorganChase, than you think. All his wealth and power isn’t helping sell his mansion on Chicago’s Gold Coast. He’s just slashed the asking price from $9.5 million to $6.95 million.

Mortgage Rates Depend on Response to President, September 20, 2010

Limited data push presidential comments during town hall today to the top of potential movers of mortgage rates.  Rates are expected to open neutral with potential for some improvement following the President's comments.

 

Mortgage Rate Trend Direction:      Neutral

Economic Reports/Rate Impact:     No Economic Reports Released Today Key

Weekly Mortgage Rate Review--Much Ado About Nothing, September 17, 2010

Yawn!--This week appeared at the outset to have the potential for dramatic moves in mortage rates due to the quantity of economic data released.  Yet, in the end, after moves down and up, we find ourselves essentially back where we began.  I suppose it really shouldn't be that surprising given the time of the year and lack of clarity in both the data and the political environment.

 

Consumer Advocate to Head New Financial Product Regulator

Ending months of speculation, President Obama has asked consumer advocate Elizabeth Warren to lead efforts to establish an agency intended to protect consumers against hidden hazards in mortgages, credit cards and other financial products. 

Five Ways to Preserve Your Home Equity

Home equity is an endangered species. According to Bloomberg, housing prices have dropped 26 percent since 2006. A report earlier this year claimed that 11.3 million homeowners -- almost a quarter of all U.S. mortgage holders -- were underwater on their loans. If you’re one of the lucky ones who still has equity in your home, do everything in your power to retain it. Here are five tips to preserve your home equity.

Mortgage Rates Surprise, September 17, 2010

Important data on inflation will be released this morning and may move mortgage rates.  Also, political comments by Speaker of the House Nancy Pelosi have the potential to effect mortgage rates for some time to come.

 

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Consumer Price Index, 8:30 AM ET, High Rate Impact

Refinancing? Get on Top of the Lock

Canada’s first native-born Prime Minister, Sir John Abbott, was known for telling the following story: “How do you know so much about everything?' was asked of a very wise and intelligent man; and the answer was 'By never being afraid or ashamed to ask questions as to anything of which I was ignorant.’”
   

Most Think Housing Market Has Bottomed Out: Fannie Mae

Most Americans believe the housing market has hit bottom and that home values will either hold steady or increase over the next year, according to a new Fannie Mae survey. 

Completed Foreclosures Hit New High in August

A record number of homes were lost to foreclosure in August, even as the number of homeowners initially defaulting on their mortgages continued to decline.

Mortgage Rates Look to Move Higher, September 16, 2010

Action by the Bank of Japan yesterday and the possibility of further action to support the yen could move mortgage rates today.  Additionally, a series of economic reports could move rates.

 

Mortgage Rate Trend Direction:     Up

Economic Reports/Rate Impact:    Producer Price Index, 8:30 AM ET, Moderate Rate Impact

Finding a Jumbo Mortgage Lender

Locating a reputable jumbo mortgage lender can make you feel like Lt. Gerard in The Fugitive. If you aren’t careful, your search may be fraught with dead ends, unexpected circumstances, and even potential criminal activity.

Demand for Mortgage Refinancing Sags

Mortgage applications fell this past week, driven by declining demand for mortgage refinancing among consumers.

Mortgage Rates Manufacture Change, September 15, 2010

Data on inflation and manufacturing could move mortgage rates today.  Additionally, a move by the Bank of japan in support of their currency has the potential to impact US dollar values and mortgage rates in turn.

 

Mortgage Rate Trend Direction:     Up

Economic Reports/Rate Impact:    Import Prices, 8:30 AM ET, Low Rate Impact

Most Expect Stagnant Home Prices Over Coming Year

Short-term confidence in the housing market is sagging, even as homeowners are becoming somewhat more optimistic about the long-term picture.

Freddie Mac Sees No Double Dip in Housing

Recent declines in home sales do not appear to indicate a weakening of the underlying housing market, but instead reflect sales pulled forward by the homebuyer tax credit, according to a new analysis by Freddie Mac. 

Mortgage Rates Move With Data, September 14, 2010

Today for mortgage rates, it's all about the consumer as the monthly retail sales figures for August are released.  Also, the US government is increasing pressure on the Chinese government to allow the value of its currency to increase.

 

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Retail Sales, 8:30 AM ET, High Rate Impact

Private Company Offers Incentives for Underwater Homeowners

A private company is proposing a new approach to keep underwater homeowners from walking away from their mortgages. Pay them to stay current on their loan. 

Three Best Reasons for a Second Mortgage

Second mortgages have been accused of playing the role of bad boy in the mortgage crisis. Many borrowers, who wanted to buy homes with no money down, were piggybacking second mortgages on top of first ones. In addition to new homes, they were acquiring massive amounts of debt. Since everyone “knew” that housing prices would continue to climb, no one was worried about paying those loans back. They could always refinance and get more money out of the increased home equity to cover whatever financial woes they encountered.

Katherine Hepburn’s Brownstone: Lessons in Buying and Renting

Have you ever wondered what it would be like to live like a movie star? You’ll get your chance if you can afford to rent the former New York City home of four-time Academy Award winner Katherine Hepburn, which is currently for rent at $27,500 per month.

Moody's: Most Mortgage Losses Already Incurred

U.S. banks have already written off over two-thirds of the losses they are expected to take on soured mortgage loans during the current economic downturn, according to an analysis by Moody’s Investors Service. 

Mortgage Rate Re-Pricing Alert 1:00 PM ET, September 13, 2010

Mortgage pricing has improved today and lenders are likely to pass this along to consumers. The move appears to simply be trading related and not based on any specific economic data or news.

Mortgage Rates Wait for Data, September 13, 2010

At the start of a new week mortgage rates appear poised for a neutral opening with no new data available to traders.  Over the weekend new international banking regulations were announced that will require banks to raise additional capital.

Different "Mortgage" Rules Apply for NYC Co-ops

If you’re thinking about buying a home in New York City, there’s a good chance you’ll be getting a co-op rather than a condo or a house. According to the official figures from the city, co-ops make up 43 percent of the non-rental housing in the city, but private sources put the figure even higher, as much as 75-85 percent. 

Mortgage Rates Continue Climb, September 10, 2010

Mortgage Rate Trend Direction:     Up

Economic Reports/ Rate Impact:   No Economic Reports Released Today

Key News:                                           Bank Capital Concerns, China's Economy

 

Summary

 

Weekly Mortgage Rate Review--The Climb Begins, September 10, 2010

Mortgage Rates Climb for First Week in 3 months

 

Shopping for the Best Mortgage Rate

When Smokey Robinson sang “You better shop around” back in the Motown era, he shared advice from his mother that applies to mortgages as well as women. The singer’s mom told him: “Get yourself a bargain son, don’t be sold on the very first one.” Here’s how to shop for the best mortgage rates.

Comparison shop

Step number one is to contact a variety of lenders. There are five places to check:

Mortgage Refinances Slow Under HARP

The pace of mortgages refinanced under the government’s Home Affordable Refinance Program (HARP) slowed in the second quarter of the year, despite falling interest rates that made refinancing more attractive to homeowners. 

Funds Again Flow to USDA Mortgage Program

Funding has been restored for the USDA’s Guaranteed Rural Housing Loan Program, meaning that lenders can once again begin issuing mortgages under the popular government program. 

30-Year Rates Edge Up After Long Decline

Interest rates rose on 30-year fixed-rate mortgages rose slightly this past week, ending nearly three months of consecutive declines, according to the weekly rate survey from Freddie Mac. 

IRS May Wrongly Seek Tax Credit Repayment

Nearly 60,000 individuals who purchased homes in 2009 could get a notice from the IRS improperly demanding that they repay their homebuyer tax credit, according to the Treasury Department. 

Mortgage Rate Re-Pricing Alert 4:00 PM ET, September 9, 2010

Mortgage pricing has increased this afternoon as traders react to a poor result from today's auction of 30 Year US Treasury bonds. With no official data released before next Tuesday, this trend could continue for the next couple of days.

Mortgage Rates' Slow Move, September 9, 2010

Mortgage Rate Trend Direction:     Up

Economic Reports/Rate Impact:    Jobless Claims, 8:30 AM ET, Trade Balance, 8:30 AM ET

Key News:                                           Economist Argues Against European Austerity Measures

 

Summary

 

The Changing Face of FHA Mortgages

Halloween is just around the corner, but that isn’t why FHA loans are about to have a whole new face. The housing crisis has caused problems for the FHA, and the mortgage insurer must make some changes to avoid saddling taxpayers with another bailout.

Mortgage Rates Get Tanned, September 8, 2010

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Federal Reserve Beige Book, 2:00 PM ET

Key News:                                           Portuguese Bond Auction

 

Summary

 

Mortgage Applications to Buy Homes Show Modest Increase

Mortgage applications to buy homes inched upward last week, as the housing market struggles to regain its footing following the end of the homebuyer tax credit program. 

Saving Money on a Mortgage Refinance

The key to successful financial management is saving money wherever possible. That’s one of the reasons that mortgage refinancing has become extremely popular. Rates are lower than they’ve been in 50 years, and savvy homeowners are taking advantage of this opportunity by jumping on the refinance bandwagon. In addition to lowering your rate, there are additional ways to save even more money when you refinance your loan.

Cut your closing fees

Lenders Agree to Give Communities First Crack at Foreclosures

In an effort to stabilize neighborhoods with high foreclosure rates, bank-owned properties in certain targeted areas will be offered for sale first to state and local governments, along with selected nonprofit organizations before they are made available to private investors. 

Mortgage Rates Head Down After Holiday, September 7, 2010

Mortgage Rate Trend Direction:    Down

Economic Reports/Rate Impact:   No Economic Reports Released Today

Key News:                                          European Bank Issues

 

Summary

 

Protect Yourself from HELOC Disaster

Sometimes, something that you think is safe can turn into something quite dangerous. Like golfing, one of the safest sports known to man. Or is it? A golfer in California recently hit a routine stroke. The ball hit a rock and actually started a fire, which enflamed 25 acres and required 150 firefighters to tame it.

FHA Short Refinance Offers New Option for Underwater Homeowners

Starting Sept. 7, 2010, underwater homeowners have a new option for refinancing their mortgages. The question is, how many will be able to take advantage of it?

Borrowing from a 401k to Refinance an Underwater Mortgage

A lot of homeowners would love to refinance at today’s rock-bottom rates but can’t because they’re underwater on their mortgages. One possible solution: borrowing from a 401k plan to pay down the difference. 

Weekly Mortgage Rate Review--End of the Rate Records?, September 3, 2010

Have we Seen the Last Record Low in Mortgage Rates?

 

Evidence is mounting that the trend of ever-lower mortgage rates may be coming to an end.  I will consider the evidence and give you my thoughts after we review mortgage rate activity for the week.

Mortgage Rates Heading Higher, September 3, 2010

Mortgage Rate Trend Direction:     Up

Economic Reports/Rate Impact:    Non-Farm Payrolls, 8:30 AM ET, High Rate Impact

                                                              ISM Services Index, 10:00 AM ET, Moderate rate Impact

More Expect Home Values to Decline

U.S. consumers are taking an increasingly pessimistic view of home values, in the wake of plunging home sales and other bad news from the housing market. 

Mortgage Rate Mania – Can’t Trust the Prognosticators

If you’ve been thinking about a mortgage refinance or the purchase of a home, you’ve probably been watching the direction of mortgage rates, along with the pundits in the news media. But beware what you read when financial professionals start predicting the future. As legendary CBS-TV newsman Edward R. Murrow said, “A reporter is always concerned with tomorrow.” Therefore, it’s a trap of the trade to assume what lies ahead.

Pending Home Sales Show Modest Increase

Pending home sales rose modestly in July, two months after taking a steep plunge that put the housing market into the doldrums.

Mortgage Rates Respond to the Market, September 2, 2010

Mortgage Rate Trend Direction:     Up

Economic Reports/Rate Impact:    Jobless Claims, 8:30 AM ET, High Rate Impact

                                                              Productivity, 8:30 AM ET, Low Rate Impact

VA Loans and Natural Disasters

According to the Center for Research on Epidemiology of Disasters, natural disasters were up 233 percent during the period 2000 to 2009 as compared to 1980 to 1989, and up 67 percent from 1990 to 1999. Whether it’s hurricanes, earthquakes, tornadoes, floods, or lava eruptions, if you’re a homeowner with a Veteran’s Administration (VA) loan, your property is at risk if the unexpected occurs.  Here’s what to do if disaster strikes.

Subdued Inflation Sends Mortgage Rates to New Lows

Low inflationary pressures allowed mortgage rates to fall to new lows again this week, according to today’s weekly rate survey from Freddie Mac.

New Disclosures to Help Explain Reverse Mortgages

Reverse mortgages can be complicated financial products that many borrowers find hard to understand. To help clear things up, the Federal Reserve is proposing a new set of disclosures to provide a better understanding of the costs and risks associated with them.

Low Rates Fail to Spur Home Purchases

Mortgage applications for home purchases declined in August, despite falling interest rates that continued to set record lows and suggesting that home sales remain weak following July’s sharp declines.

The four-week moving average for home purchase mortgage applications is down 0.2 percent, the Mortgage Bankers Association reported this morning, despite a 1.8 percent gain last week. Compared to the same week one year ago, purchase applications are down 37 percent.

Private Loans Modifications Continue Briskly

Roughly two-thirds of the more than 1 million homeowners who have obtained permanent mortgage loan modifications this year did so outside of the government’s Home Affordable Modification Program (HAMP), according to a new report.

Through the end of July, nearly 760,000 homeowners have obtained private mortgage loan modifications through their lenders so far this year, according to figures from the Hope Now Alliance. Another 368,000 were approved for permanent loan modifications under HAMP.

Mortgage Rates Roll, September 1, 2010

Mortgage Rate trend Direction:     Up

Economic Reports/Rate Impact:  Construction Spending, 10:00 AM ET, Low Rate Impact

                                                            ISM Index, 10:00 AM ET, Moderate Rate Impact

Mortgage Rate Re-Pricing Alert 11:00 AM ET, September 1, 2010

Mortgage pricing is worsening after a big rally in the US stock market. A surprising result from the ISM Manufacturing Index sent already higher stock prices even higher. Call me cycnical, but August opened with a huge rally, only to end up down more than any August since 2001.

Consequences of a Second Mortgage Default

Being late is good for making dramatic entrances at cocktail parties, but the advantages stop there. Arrive late to work and you could get fired. And if you slip behind on your second mortgage payments, you risk losing your home.

Default sets the wheels in motion

Home Prices Show Strong 2nd Quarter Increase

U.S. home prices increased 3.1 percent the second quarter of the year, spurred by seasonal factors and the expiring federal tax credit, according to figures released today by secondary mortgage lender Freddie Mac.

Home Prices Up, But Show Signs of Slowing

U.S. home prices posted significant gains in June, but other recent signs are pointing to what could be a bumpy road ahead for the housing market.

Mortgage Rates Feed on Data, August 31, 2010

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Chicago PMI, 10:00 AM ET, Moderate Rate Impact

                                                              Consumer Confidence, 10:00 AM ET, Moderate Rate Impact

Five Reasons to Refinance Your Home

Winston Churchill once said, “there is nothing wrong with change, if it is in the right direction.” The same reasoning applies to home refinancing. You can improve your financial situation with a mortgage refinance -- as long as you pursue this change for the right reasons.

Lowering the rate 

Mortgage Rates: New Week, New Inspiration, August 30, 2010

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Personal Spending/Income, 8:30 AM ET, Moderate Rate Impact

Key News:                                           National Association for Business Economics Survey

 

Summary

 

One in Four Opt for 15-Year Mortgage When Refinancing

Homeowners able to refinance their mortgages are increasingly looking to shorten up the term by converting to a 15-year loan, according to the financial data company CoreLogic. 

Budgeting for Your Jumbo Mortgage

Planning ahead has its advantages. It can keep you out of trouble with the IRS, protect you from financial disaster, and help you retire in style. More immediately, thoughtful planning can bolster your confidence about purchasing that expensive home you’ve been eyeing.

Mortgage Rate Re-Pricing Alert 1:20 PM ET, August 30, 2010

Mortgage pricing is improving this afternoon as the stock market has continued to move lower while mortgage-backed securities (MBS) have gained. Following President Obama's Rose Garden statement on the economy, the MBS markets continued higher. The president said very little that could be interpreted as new or encouraging relative to our economy.

Mortgage Rate Re-Pricing Alert 11:00 AM ET, August 27, 2010

Mortgage rates may re-price higher this morning. As expected the stock market and the mortgage-backed securities (MBS) market reacted immediately to the downward revision of 2nd quarter GDP.  Then the markets reacted to the comments of Federal Reserve Chairman Ben Bernanke this morning at the Jackson Hole Economic Summit.  Initially, the reaction was negative as no new initiatives were announced to stimulate the economy.  But as predicted, further review of his comments resulted in a more positive assessment by analysts and traders.

Mortage Rates Respond to GDP, August 27, 2010

Mortgage Rate Trend Direction:    Up

Economic Reports/Rate Impact:   Revised GDP, 8:30 AM ET, High Rate Impact

                                                            Consumer Sentiment, 10:00 AM ET, Low Rate Impact

Mortage Rates Weekly Review, August 27, 2010

"Double, Double Toil and Trouble" are Bonds in America Headed for a Bubble

 

In Act 4 of Shakespear's Macbeth, three Scottish witches are making a potion designed to heap double the amount of "toil and trouble" on the new King Macbeth.  They create their potion by combining all sorts of nasty and disgusting items into a veritable stew of vileness.  Some of the ingredients are familiar to those who have read or listened to the passage: eye of newt, toe of frog, and the like. 

Foreclosures Leave Fewer Mortgages Underwater

The number of “underwater” mortgages declined in the second quarter of the year, but that’s mainly because some of those borrowers lost their homes to foreclosure, according to a new report out this week. 

Chicago Fed Chief: Educate Borrowers to Avoid Defaults

Educating borrowers to make better financial decisions might be a better way to protect them from risky mortgage products rather than banning such products entirely, one of the governors of the Federal Reserve has proposed. 

Mortgage Delinquencies, Foreclosure Starts Decline

Rates of mortgage delinquencies and foreclosure starts fell in the second quarter of the year, raising hopes that economic pressures on homeowners may be easing. 

Four Ways Home Equity can Help Fund Retirement

It was soon after ’64 when the Beatles imagined what life would be like when they were 64. They saw a simple life -- knitting a sweater by the fireside, mending a fuse when the lights were gone, and renting a cottage every summer in the Isle of Wright. But with retirement accounts shriveling up, where will today’s seniors find the funds for life’s simple pleasures? The answer may be found in their home equity.

Mortgage Loan Modification? Beware of Impact on Credit Score!

When a tornado veers towards your neighborhood, you must choose the course of action with the fewest negative consequences. Generally, this means grabbing some canned foods and heading for the basement. The same rule applies when you can’t keep up with your mortgage payments. To keep your home, you may have to proceed with a loan modification, even if that means your credit score (FICO) will suffer. 

Long-term Mortgage Rates Keep Falling

And they keep going down, with no bottom in sight.

Mortgage Rates Like the Environment, August 26, 2010

Mortgage Rate Trend Direction:     Neutral/Down

Economic Reports/Rate Impact:    Jobless Claims, 8:30 AM ET, High Rate Impact

Key News:                                          Jackson Hole Economic Summit

 

Summary

 

Mortgage Rate Re-Pricing Alert 2:20 PM ET, August 26, 2010

Mortgage pricing may improve this afternoon. The stock market has turned negative and the mortgage-backed securities market has rallied in anticipation of a major negative revision to Gross Domestic Product figures for the second quarter and lowered forcast for the balance of 2010.

Newer Loan Modifications Less Likely to Redefault

Fewer homeowners with mortgage loan modifications are falling back into default, casting doubt on predictions that most of these borrowers will eventually go into foreclosure anyway.

A new report found that homeowners who obtained loan modifications in 2009 were about half as likely to become seriously delinquent within six months as were borrowers whose mortgages were modified the year before. That’s according to the State Foreclosure Prevention Working Group, which released the report Tuesday.

Recent modifications more likely to reduce payments

 

Benefits of Fixed-Rate Mortgages

In the gambling world, it’s a bad thing if a race is fixed. But in the mortgage world, it can be extremely beneficial if a loan’s rate is fixed. There are multiple benefits that make this type of borrowing the total opposite of a gamble.

How a fixed-rate mortgage works

New Home Sales Fall to Record Low

New home sales fell to their lowest rate on record in July, falling to an annual rate of 276,000 units, according to figures released this morning by the Commerce Department. 

Mortgage Rates Look to Fall Further, August 25, 2010

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Durable Goods Orders, 8:30 AM ET, Moderate Rate Impact

                                                              New Home Sales, 10:00 AM ET, Low Rate Impact

Handling a HELOC Freeze

The mortgage crisis and subsequent tightening of credit by lenders has made tapping home equity more challenging. People who took out a home equity line of credit (HELOC) before the crisis occurred have been thanking their lucky stars that they still have access to funds, especially if they lost their jobs, had emergency medical expenses, or experienced a reduction in the value of their portfolios. Unfortunately, some banks started to freeze those credit lines, making that last lifeline unavailable to those who needed it most.

Mortgage Rates Run for the History Books, August 24, 2010

Mortgage Rate Trend Direction: Down

Economic Reports/Rate Impact: Existing Home Sales, 10:00 AM ET, Moderate Rate Impact

Key News: US Political Primaries

 

Summary

 

Home Sales Plunge in July

Existing home sales plummeted in July, dropping 27.2 percent to an annual rate of only 3.83 million, according to the National Association of Realtors. 

Americans Scale Back Desires for Home Ownership

Americans’ aspirations about homeownership are becoming more modest, envisioning smaller homes for themselves when they think about buying a home at all. 

Reverse Mortgages and Second Marriages

When Frank Sinatra crooned “Love is lovelier the second time around…just as wonderful, with both feet on the ground,” he extolled the virtues of second marriages. Falling in love later in life, when you’ve accumulated significant assets, can be complicated, especially when it comes to protecting your loved one in case your time is up before hers. This is especially true if you have a reverse mortgage, because if it’s jointly held in the name of you and your first spouse, your newly beloved may lose your home if you were to pass first.

New Web Site Helps Sort Through Loan Modification, Refinance Options

Financially pressed homeowners have a new tool to help them sort through their options for reducing their mortgage payments and avoiding foreclosure. 

Mortgage Rates Start Week Quietly, August 23, 2010

Mortgage Rate Trend Direction:     Neutral

Economic Reports/Rate Impact:    No economic reports released today

Key News:                                           M&A Activity

 

Summary

 

Mortage Rates Weekly Review, August 20, 2010

It has been said by somebody's Moma, I suppose, that "sometimes you've simply got to take your medicine".  Usually such an admonition would come during a period in which a child is dealing with the consequences of making a poor choice.  Such is the case, I believe with the US economy.

Home Refinancing Checklist

Italian composer Gioacchino Rossini once said, “Give me a laundry list and I’ll set it to music.” Imagine the composition he could have been inspired to create with a list of documentation needed for a mortgage refinance!

Mortgage Rates Continue Record Run, August 20, 2010

Mortgage Rate Trend Direction:     Neutral/Down

Economic Reports/Rate Impact:    No official economic reports released today

Key News                                            Global economic slowdown fears  

 

Summary

 

Homeowners More Pessimistic About Housing Market

Homeowners have grown more pessimistic about the direction of the U.S. housing market, with one-third saying they believe home prices have yet to hit bottom. 

Enrollments in Loan Mod Program Dwindle

The number of homeowners entering the government’s Making Home Affordable mortgage loan modification program has fallen to a new low, even as new foreclosures are increasing. 

Understanding Credit Scores: FICO vs. VantageScore

Checking your credit score is one of the first things borrowers are urged to do when shopping for a mortgage. But these days, you need to know which type of credit score you’re getting. 

Mortgage Rate Re-Pricing Alert 10:00 AM ET, August 19, 2010

As indicated in our mortgage rate overview this morning, a surprise to the downside in the Philadelphia Fed Index could result in mortgage pricing improvements. The report was far more negative than anticipated and mortgage-backed securities rallied significantly. Mortgage pricing is improving as a result.

Getting Answers: Seven Questions for your Mortgage Lender

Mortgage rates are low, and applications are up. If you’re shopping for a mortgage, you’re entering a world where there’s a lot of information you may know little about. Don’t feel embarrassed -- information about mortgage rates and closing costs aren’t taught in school, so unless you’ve worked in the industry, it’s perfectly normal for you not to know what to look for. Remember that you’re the customer, and the mortgage lender is trying to get your business.

Mortgage Rates Hover Near Records, August 19, 2010

Mortgage Rate Trend Direction:     Neutral/Down

Economic Reports/Impact:              Jobless Claims, 8:30 AM ET, High Rate Impact

30-Year Rates Fall for 9th Straight Week

Fixed-rate mortgages fell to new lows again this week, edging slightly downward in the weekly Freddie Mac rate survey. 

Debt, Delinquencies Down, But Foreclosures Up

U.S. consumer debt, including mortgages and home equity loans, declined again in the second quarter of the year, as declines in home values and high unemployment continued to put the squeeze on household budgets. 

Mortgage Rates Remain Outstanding, August 18, 2010

Mortgage Rate Trend Direction:     Down

Economic Reports/Impact:              No Economic Reports Released Today

Key News:                                           US Companies Earnings, Conference of Future of Freddie/Fannie

 

Refinance Applications Jump 17 Percent

Applications to refinance an existing mortgage surged last week, hitting their highest point since May 2009.
 
Refinance applications jumped 17.1 percent for the week, according to the weekly survey from the Mortgage Bankers Association, as rates rose slightly from the previous week’s record lows.

Inflation Risk and Mortgage Rates: A Primer

The psychic at the county fair could give you an outlook on mortgage rates — and she might even turn out to be right. But over-reliance on a crystal ball gazer probably isn’t the best fiscal strategy. You’re better off learning about the factors that influence mortgage rates, such as inflation risk.  

Geithner: Government Support for Mortgages Still Needed

Saying that it’s time to “begin the process of weaning the markets away from government programs and make room for the private sector to get back into the business of providing mortgages,” Secretary of Treasury Tim Geithner this morning opened a conference focused on overhauling the way home purchases are financed in America. 

Private Loan Mods Up 10 Percent in June

Private sector mortgage loan modifications rose 10 percent in June, more than doubling the number of modifications completed through the government’s Home Affordable Modification Program (HAMP), according to new figures from the Hope Now Alliance. 

Mortgage Rates Take a Breath, August 17, 2010

Mortgage Rate Trend Direction:     Up

Economic Reports/Rate Impact:    Housing Starts, 8:30 AM ET, Moderate Rate Impact

                                                              Producer Price Index, 8:30 AM ET, Moderate Rate Impact

Defray College Tuition Costs with a Mortgage Refinance

Horror films like Scream 2, Sorority House Massacre, and Night of the Creeps take place on college campuses. But as frightening as these films are, nothing is quite as scary as not finding enough money to pay for college tuition. With the cost of a four-year education ranging anywhere from $26,000 to $140,000 annually, it’s no wonder that parents are having nightmares. If you have equity in your home, you may be able to use a cash-out mortgage refinance to help raise necessary funding to give your child the education she deserves.

Mortgage Rates Benefit from Economic Blues, August 16, 2010

Mortgage Rate Trend Update:     Down

Economic News/Rate Impact:     NY Empire State Index

Key News:                                        US Companies Earnings, Japanes Economic Woes

 

Summary

 

Quell Financial Insecurity with Home Equity

Have you been feeling nervous about your financial situation lately? If so, you’re not alone. According to a recent report from the Rockefeller Foundation and Prof. Jacob Hacker of Yale University, economic insecurity in this country is at its highest point in 25 years.

Fed Announces New Mortgage Rules to Protect Consumers

New rules designed to prevent loan originators from steering borrowers into more costly mortgages in order to increase their own compensation have been issued by the Federal Reserve.
 
The Fed also issued temporary rules requiring that borrowers be informed how their mortgage rates and payments may vary over time, and proposed new rules establishing enhanced consumer protections and disclosures on reverse mortgage products.
 
The various rules, announced today, amend or would amend regulations implementing the Truth in Lending Act.

Weekly Mortgage Rate Review--Quantitative Easing Returns, August 13, 2010

Quantitative Easing Take Two

 

Fannie, Freddie May Prohibit Private Transfer Fees

Private transfer fees would practically be banned under a new rule proposed by the Federal Housing Finance Agency (FHFA) that would prohibit Fannie Mae and Freddie Mac from backing mortgages that feature them.
 
Such covenants require the buyer and/or seller to pay a fee to the original developer, a home association or other party each time the property is resold. Since Fannie Mae and Freddie Mac guarantee the vast majority of U.S. mortgages, such a ban would effectively eliminate such covenants from all but the highest end of the U.S.

Home Improvement: Eight Tips for Finding a Contractor

Have you been contemplating a serious home improvement project lately? Then you may be hearing the words of Voltaire resonating in your head: “God gave us the gift of life; it is up to us to give ourselves the gift of living well.” With mortgage interest rates at record lows, living well may mean giving yourself the gift of home renovation.

$3 Billion Designated for Foreclosure Prevention Aid

The Obama administration has announced it will provide another $3 billion in mortgage assistance for unemployed and financially stressed homeowners through two foreclosure assistance program. 

Will Mortgage Rates Freak Out on Friday the 13th?, August 13, 2010

Mortgage Rate Trend Direction:       Down

Economic Reports/Rate Impact:      Consumer Price Index, 8:30 AM ET, Moderate Rate Impact

Foreclosures Head Back Up in July

U.S. foreclosure filings rose 4 percent in July after three months of declines, while bank repossessions edged close to an all-time high, according to new figures released today by RealtyTrac.
 
More than 325,000 residential properties, or one out of every 397 U.S. housing units, were subject to a foreclosure filing in July.

Potential Problems with FHA Mortgages

When you’re low on cash reserves, FHA loan programs look like icy cool lakes in the center of a blazing hot desert. This vision isn’t a mirage exactly — but there may be some unfriendly terrain between you and that refreshing FHA oasis.

Mortgage Rates Continue To Find New Lows, August 12, 2010

Mortgage Rate Trend Direction:     Neutral/Higher

Economic Reports/Impact:              Jobless Claims, 8:30 AM ET, High Rate Impact

Key News:                                           US Companies Earnings, International Reaction to Fed Comments

 

Shock Protection: Be Prepared for Refinance Settlement Costs

When Oprah Winfrey gave everyone in her studio audience a free car, TV Guide named it one of the greatest moments in television history. But once the recipients got over their amazement, they were in for a different kind of sticker shock – each winner was required to pay up to $7,000 in taxes for the grand prize. While it was a great deal for the 276 winners, it still came with a hefty price tag.
   

Mortgage Rates Tumble, August 11, 2010

Mortgage Rate Trend Direction:     Down

Economic Reports/Impact:              Trade Balance, 8:30 AM ET, Low Rate Impact

Key News:                                            Reaction to Federal Reserve Statement

 

Home Prices Edge Up in Second Quarter

National home prices edged up in the second quarter of 2010, posting a 1.5 percent increase over the same period one year before, according to new survey data from the National Association of Realtors (NAR). 

Mortgage Rates Drop Again, But Applications Flat

Mortgage activity remained relatively flat last week, despite the lowest interest rates ever reported by the Mortgage Bankers Association (MBA). 

Mortgage Rates Anticipate Fed, August 10, 2010

Mortgage Rate Trend Direction:     Neutral/Down

Economic Reports/Impact:             Productivity, 8:30 AM ET, Low Rate Impact

Take Advantage of Energy Tax Credits Before it’s too Late

If you’ve caught the home improvement bug, but have been putting it off until the economy recovers, it may be time to take action. There are many tax credits that expire at the end of 2010, so if you procrastinate, you may lose out on juicy rebates for the greening of your personal environment.

It’s easy being green

Maryland Mortgage Program Boosts Homebuyer Aid

The state of Maryland is cutting the interest rate and boosting down payment assistance for its primary homebuyer assistance program. 

Guidelines Unveiled for Underwater Refinance Program

Details of a new program designed to help underwater homeowners refinance into an FHA mortgage have been released by the U.S. Department of Housing and Urban Development. 

Mortgages Up, But Home Values Continue Decline

U.S. mortgage lenders originated more loans in the second quarter of the year than the first, even as home values continued to decline, according to a pair of reports issued today. 

Mortgage Rates Seek New Driver, August 9, 2010

Mortgage Rate Trend Direction:     NeutralUp

Economic Reports/Impact:              No Economic Reports Released Today

Key News:                                           US Companies Earnings, Alan Greenspan Comments

 

Mortgage Rates and the Good Life

When Aristotle wrote Nicomachean Ethics back in 350 BC, he said that “eudaimonia” – happiness – meant “doing well” and “living well,” and coined the concept of the “good life.” More recently, MetLife did a study and discovered that the concept of a “good life” means different things to different people. One common thread was shared, though – the good life meant living with purpose, having a clear vision of your path, and focusing on what you need to get you there.

Mortgage Rates Weekly Review, August 6, 2010

Mortgage Rates Play Waiting Game Before Improving

 

Summary

 

Mortgage Rates Respond Positively, August 6, 2010

Mortgage Rate Trend Direction:    Down

Economic Reports/Impact:            Monthly Non-farm Payroll, 8:30 AM ET, High Rate Impact

Key News:                                         Change in US Administration's Economic Team     

 

Watch Out for Fraudulent Mortgage Loan Modification Services

Motivational speaker Tony Robbins once said, “In life, you need either inspiration or desperation.” Unfortunately, in this era of mortgage loan scams, desperate con men are being inspired to peddle fraudulent mortgage loan modification services, and causing trouble for struggling homeowners who are doing everything in their power to avoid foreclosure.

Mortgage Refinance or Second Mortgage?

In the summer blockbuster Inception, one hopeful decision changes everything for dream extractor Dom Cobb. There’s no arguing that making a short-sighted choice exposes you to unintended consequences — not only in dreamscapes, but also in the concrete world of home mortgages.

Mortgage Rates React to Jobs, August 5, 2010

Mortgage Rate Trend Direction:     Neutral/Down

Economic Reports/Rate Impact:    Jobless Claims, 8:30 AM ET, Moderate Rate Impact

Key News:                                          European Central Bank Rates, China Real Estate Rules

 

Mortgage Rates Play Waiting Game, August 4, 2010

Mortgage Rate Trend Direction: Neutral

Economic Reports/Impact:          ISM Services Index, 10:00 AM ET, Moderate Rate Impact

Key News:                                       Congressional decision on tax cuts

 

Refinancing Mistakes to Avoid

There are lots of facts to focus on when you’re shopping for a mortgage refinance. If you overlook some key points, though, you may be making the same mistakes as many mortgage shoppers before you. You can avoid getting caught in traps now that could have negative consequences later by knowing what these potential pitfalls are and avoiding them.

Control your cash-out

Four Reasons to use Home Equity to Buy a Car

Back in 1909, you could purchase the first car, the Ford Model T, for $850. That’s such a bargain, you could probably afford that out of your pocket! Unfortunately, that number doesn’t take inflation into account, which means that if you purchased that same car now, it would cost $20,513 in today’s dollars. (Not such a bargain after all.)

Mortgage Rates Seek to Regain Downward Push, August 3, 2010

Mortgage Rate Trend Direction:     Down

Economic Reports/Impact:             Personal Income, 8:30 AM ET, Moderate Rate Impact

Mortgage Rate Re-Pricing Alert 3:00 PM ET, August 3, 2010

Lenders may improve mortgage pricing this afternoon as mortgage-backed securities (MBS) have improved in pricing. Negative personal income, factory orders and home sales data moved stocks lower and sent investors into MBS.

Mortgage Rates Step Back, August 2, 2010

Mortgage Rate Trend Direction:     Up

Economic Reports/Rate Impact:    Construction Spending, 10:00 AM ET, Moderate Rate Impact

                                                              ISM Index, 10:00 AM ET, High Rate Impact

VA Loans for Short Sales

Some people theorize that our military men and women get the short end of the stick when they return home to their normal lives. The Veteran’s Administration (VA), however, rewards veterans for their service to this country by offering programs to make their lives easier, including the VA home loan program. One way for an American who has given military service to make maximum use of a VA mortgage is to buy a home through a short sale.

What’s a short sale?

Soon to Return: USDA Zero-Down Mortgage

Zero-down payment mortgages are almost impossible to find these days, unless you’re a veteran who can obtain one through the VA. But that’s about to change, with the revival of another popular zero-down payment program that’s available to non-vets.
 
The U.S. Senate this past week gave final approval to a bill that restores funding for the USDA Single Family Housing Guaranteed Loan Program.

California, Florida Account for Two-Fifths of Suspected Mortgage Fraud

California and Florida led the nation in incidents of suspected mortgage fraud last year, with Los Angeles and Miami heading the list of metropolitan areas with the most reported incidents. 

Refinancing: Credit Scores can Make or Break You

With mortgage rates at historic lows, it’s tempting to jump on the refinancing bandwagon. It seems unlikely that homeowners will get another chance to take advantage of such desirable rates in their lifetimes. Sure the refinancing climate is challenging, because banks are being very selective as to who will receive funds at these rates.

Mortage Rates Weekly Review, July 30, 2010

Mortgage Rates Reach All-time Lows

 

This past week has provided a great deal of news and data for the stock and bond markets to analize.  Fortunately for mortgage borrowers, the analysts have focused on the data showing economic slowing in the US rather than the mostly positve earnings reports from US companies.

Week in review

 

Mortgage Rates Aim for New Records, July 30, 2010

Mortgage Rate Trend Direction:     Down

Economic Reports/Impact:             Advance GDP, 8:30 AM ET, Moderate Rate Impact

Homeownership Continues to Decline

The U.S. homeownership rate continued to decline in the second quarter of the year, falling to 66.9 percent, the lowest level since the end of 2009.

Mortgage Rates Hold, July 29, 2010

Mortgage Rate Trend Direction:     Up

Economic Reports/ Impact:            Jobless Claims, 8:30 AM ET, Moderate Rate Impact

Key News:                                          US Companies Earnings, European Comapny Earnings

 

More Properties Lost to Foreclosure

The number of U.S. homes in foreclosure continues to decline, even as the number of properties actually lost through the process is on the rise, according to figures released today by real estate data firm RealtyTrac. 

Mortgage Rates Set Record Lows for Sixth Straight Week

Mortgage interest rates once again fell to new record lows this week, according to the weekly Freddie Mac rate survey. 

Mortgage Rate Re-Pricing Alert 11:20 AM ET, July 29, 2010

A reversal in the markets from early trading has erased initial losses in mortgage-backed securities and pushed them into positive territory. This should result in lowered mortgage pricing.

Achieve Homeownership with an Owner-Carried Second Mortgage

Motivational speaker Zig Ziglar once said, “Failure is a detour, not a dead-end street.” Remember those words if your lender doesn’t approve your mortgage loan. With a little creativity and a motivated seller, you can still buy that dream home.

Homeowners Putting Up Extra Cash to Refinance

Looking to refinance your mortgage? You might have to bring some cash to the table. 

Purchase Applications Rise for Second Week

Mortgage applications for home purchases have increased for the second week in a row, following 10 weeks of almost unbroken declines.

Smarten Up: Learn About Fixed Mortgage Rates

Are you surprised to learn that on the game show “Are you Smarter than a Fifth Grader?” there have only been two people who have won the million dollar grand prize? Almost all adults have completed high school – 12th grade – so it’s somewhat surprising that there aren’t more people who have as much knowledge as someone in fifth grade.

Common Reverse Mortgage Mistakes

The American Indian Traditional Code of Ethics says, “special respect should be given to elders.” But in our society, getting older is anything but desirable, as seniors flock to plastic surgeons to help their faces and bodies defy the aging process. Marketers target 18 to 34 year olds as the only money worth attracting.

How Much Is Your Home Worth Today?

What’s your home worth today? That’s a key question if you’re looking to refinance your mortgage or take out a home equity loan. 

Home Prices Up, But Significance Questioned

U.S. home prices rose in May, according to new figures out today, despite declining home sales linked to the expiration of the homebuyer tax credit at the end of April.

Mortgage Rate Re-Pricing Alert 11:20 AM ET, July 27, 2010

Lenders may lower mortgage pricing as mortgage-backed securities have risen in price after Consumer Confidence for June was much lower than expected.

Mortgage Rates to Move Higher Initially, July 27, 2010

Mortgage Rate Trend Direction:     Neutral/Higher

Economic Reports/Rate Impact:    Consumer Confidence, 10:00 AM ET, Moderate Rate Impact

Key News:                                           US comapnies earnings

 

Summary

 

Mortgage Rates Nudged from Friday's Position, July 26, 2010

Mortgage Rate Trend Direction:     Neutral/Lower

Economic Reports/Impact:             New Home Sales, 10:00 AM ET, Moderate Rate Impact

Key News:                                          European Bank Stress Tests, US Companies Earnings

 

New Home Sales Bounce Back in June

New home sales rebounded in June, increasing 23.6 percent from the all-time low reported for May, according to figures released this morning by the Commerce Department. 

Family Matters: Discussing Home Equity with your Spouse

Homer Simpson once made a huge financial decision -- taking out a home mortgage -- without consulting his wife, Marge. This scenario parallels the lives of many non-cartoon couples, as well. A recent survey by American Express, in fact, discovered that 91 percent of Americans find reasons to avoid talking about money with their partners.

Weekly Mortgage Rate Review, July 23, 2010

Mortgage Rates Survive the Stress

 

Mortgage Rate Special News Alert 12:25 PM ET, July 23, 2010

7 of 91 European banks have failed the "stress" tests performed by banking regulators. While this is a relatively small number, and the total capital shortfall of the failing institutions was also very small, analysts will be focusing for the rest of the day and into next week on the rigor of the tests. If the tests are viewed as valid, then stock markets will rise and bond markets, including the US mortgage-backed securities (MBS) market will likely fall. Falling MBS prices lead to higher mortgage rates.

California Mortgage Defaults at Three-Year Low

New mortgage defaults in California have fallen to their lowest level in three years, even as the number of homes actually lost to foreclosure continues to rise. 

Mortgage Rates Awaiting "Stress" Tests, July 23, 2010

Mortgage Rate Trend Direction:     Neutral

Economic Reports/Rate Impact:    No official economic reports today

Key News:                                          US companies earnings, European Bank Stress Tests

 

Summary

 

Future of Conforming Jumbos Uncertain

Jim Morrison, the legendary voice of the Doors, made pessimism cool among fast crowds when he sang, “the future’s uncertain and the end is always near.” Now, 40 years later, 21st century home shoppers can relate to his negativity. The jumbo conforming mortgage, created during the heart of the real estate crisis, may be facing its final days.

Consequence of crisis

Existing Home Sales Fall Less Than Expected

Sales of existing homes fell in June, as the housing market continues to feel the effects of the end of the homebuyer tax credit. 

Rates Hit New Lows for Fifth Straight Week

Interest rates on 30- and 15-year fixed-rate mortgages hit new record lows again this week, according to the weekly rate survey by government-supported lender Freddie Mac.

The average rate on 30-year fixed-rate mortgages fell slightly to 4.56 percent this past week, down from 4.57 percent the week before. The average rate on 15-year fixed-rate loans declined to 4.03 percent, down from 4.06 percent the week before. Both include an average 0.7 origination and discount points.

HUD to Investigate Possible Discrimination Against Pregnant Borrowers

An investigation into whether lenders may have illegally denied mortgages to pregnant women and persons on temporary disability is being launched by the Department of Housing and Urban Development (HUD). 

Mortgage Rates Fluctuate in Narrow Band , July 22, 2010

Mortgage Rate Trend Direction:     Neutral/Up

Economic Reports/Rate Impact:    Jobless Claims, 8:30 AM ET, Moderate Rate Impact

                                                             Existing Home Sales, 10:00 AM ET, Low Rate Impact

Finding the Best Mortgage Lender

Mortgages have been stealing the headlines these days, from the beginning of the crisis through the anticipation concerning current financial reform. But there’s one thing that hasn’t changed – if you want a mortgage loan, you need to find a lender. With so many banks to choose from, you may feel confused and overwhelmed.  If you’re looking for your mortgage lender, here are some tips to help you find the one that’s right for you.

Mortgage lender search   

Mortgage Rates Respond to Markets, July 21, 2010

Mortgage Rate Trend Direction:      Up

Economic Reports/Rate Impact:     No economic reports of signifigance released today

Key News:                                            US Companies earnings, Federal Reserve Chairman's Testimony

 

Summary

 

Rates Hit New Lows; Purchase Applications Perk Up

The real estate market showed a small glimmer of life last week, as mortgage applications for home purchases picked up slightly after hitting a 13-year low the week before. 

Backlog of Trial Loan Modifications Shrinks

The government’s Making Home Affordable anti-foreclosure program is either picking up the pace or losing steam, depending on which end of the process you’re looking at. 

FHA Loans Tighter, but Available to Homeowner Wannabes

Democrats and Republicans are forever embroiled in a debate over how much power the government should wield. When it comes to the Federal Housing Administration (FHA), however, both parties agree on one thing – this government agency, which provides mortgages to people who may not qualify for conventional mortgages, is a good thing.

History of the FHA

Mortgage Rate Re-Pricing Alert 10:20 AM ET, July 21, 2010

It looks like it may be one of those days! An early reversal in the stock market has improved the demand for mortgage-backed securities and improved mortgage pricing. Technology stocks (other than Apple) and retail stocks are selling lower this morning. Additional mortgage rate changes may be in order as earnings reports are released and Chairman Bernanke continues his testimony in Congress.

Mortgage Rate Re-Pricing Alert 3:30 PM, July 21, 2010

Lenders are repricing for the better this afternoon in response to comments made by Federal Reserve Chairman Ben Bernanke in Congressional testimony. Chairman Bernanke said that we are facing "unusual uncertainty" in our economic outlook. Uncertainty is not a word that traders like and the stock market has responded with a large decline.

Housing Starts Fall Again in June

Housing starts fell another 5 percent in June, as demand continued to shrink following the end of the homebuyer tax credit.
 
Total housing starts fell to an annual rate of 549,000 units, according to monthly figures released this morning by the Commerce Department, with most of the decline in multiunit dwellings such as apartment buildings and condominiums.

Second Mortgages: What You Need to Know

Oliver Twist, Charles Dickens’ fictional character who’s known for requesting more food, appreciated the meaning of seconds. He had a need – he was hungry – and he knew that a second helping of food would satisfy him. Second mortgages fill a need, as well. If you need cash, and have accumulated equity in your home, a second mortgage can be the perfect financial food, thanks to their relatively low interest rates, and the comparatively simple application process.

Flavors of second mortgages

Loan Modification Help for Chicago-Area Homeowners This Weekend

Chicago-area homeowners  in need of a loan modification to avoid foreclosure can obtain help in doing so a “Fix Your Mortgage” event this Saturday, July 24, in southwest Chicago.
 
The event will bring together volunteer real estate attorneys, HUD-certified debt counselors and staff from the City of Chicago and Neighborhood Housing Services of Chicago to help homeowners determine if they qualify for a mortgage loan modification under the government’s Making Home Affordable Program.

Rates Improve with Mixed Corporate Earnings, July 20, 2010

Mortgage Rate Trend Direction:    Down

Economic Reports/Rate Impact:   Housing Starts, 8:30 AM ET, Moderate Rate Impact

Key News:                                          US Companies Earnings

 

Summary

 

Mortgage Rate Re-Pricing Alert 2:00 PM, July 20, 2010

Mortgage pricing may increase this afternoon as mortgage-backed securities prices have fallen. The stock market has turned around from big early losses and is now trading in positive territory. It has been a volatile day and further changes may occur.

Financial Reform will Benefit Mortgage Refinancing

Back in 1776, John Adams, a member of the Continental Congress, and the future first Vice President and second President of the U.S. wrote, “Each individual of the society has a right to be protected by it in the enjoyment of his life, liberty, and property.” Fast forward 234 years later, and today’s Congress, in their financial reform package, is taking steps to ensure that homeowners are protected from losing their properties.

Mortgage Rate Re-Pricing Alert 2:00 PM, July 19, 2010

Lenders may reprice higher this afternoon as the stock market has rebounded somewhat, hurting demand for mortgage-backed securities.

Mortgage Rates Follow the Markets, June 19, 2010

Mortgage Rate Trend Direction:     Up

Economic Reports/Rate Impact:    No economic reports of signifigance released today

Key News:                                           US Companies Earnings, European Debt Crisis

Summary

 

Homebuilders Getting More Pessimistic

Homebuilder confidence fell in June to its lowest level in over a year, as consumer demand for housing continued to shrink following the end of the homebuyer tax credit. 

Can You Really Get a 125 Percent Refinance?

For underwater homeowners, the 125 percent refinance offered through the government’s Home Affordable Refinance Program (HARP) sounds like a great deal. But how hard is it to qualify for? 

Increasing Your Home Equity

Anyone who’s ever started a business knows that you start small, with the ultimate goal of making it as successful as possible. Your home is similar to a small business. When you buy it, you share ownership with a partner—the bank—who most likely holds a substantial stake. Your goal is to buy out your partner—the bank—so that, ultimately, you own 100 percent of the home equity, free and clear of any partners.

Importance of home equity

Weekly Mortgage Rate Review, July 16, 2010

Mortgage rates liked the weather

 

Mortgage Rate Re-Pricing Alert 10:15 AM ET, July 16, 2010

Mortgage rates may decline this morning from yesterday afternoon’s levels. As we predicted, mortgage-backed securities traders waited until the Consumer Sentiment report was released at 10:00 AM to determine their pricing inclination. The Consumer Sentiment report showed the lowest consumer confidence in 11 months raising fears that a further slowdown in consumer spending could push a slowing economy into recession

Mortgage Rates Poised to Move, July 13, 2010

Mortgage Rate Trend Direction:      Neutral/Lower
Economic Reports/Rate Impact:     Consumer Price index, 8:30 AM ET, High Rate Impact
                            &n

Senate Approves New Mortgage Rules, Other Reforms

The U.S. Senate passed a sweeping financial reform bill on Thursday, establishing new rules for mortgages as well as imposing new regulations on Wall Street and providing enhanced protections for consumers and investors. 

Are you Eligible for A Mortgage Loan Modification?

It’s tough being a homeowner who needs mortgage help. There’s a lot of information out there about the government’s Home Affordable Modification Program (HAMP), which offers a loan modification option for struggling homeowners who are likely to lose their properties because they’re falling behind on their loan payments. But when you search the Internet for ways to get started, it can sometimes be so confusing, your feeling of helplessness grows even stronger.

Bank Repossessions Up, But New Foreclosures Decrease

The number of homes lost to foreclosure hit a new high in the second quarter of the year, even as the total number subject to the foreclosure process declined, according to new figures released today. 

Mortgage Rates Hold Steady

Mortgage rates held steady this past week, with the standard 30-year fixed-rate mortgage unchanged from last week’s record low of an average rate of 4.57 percent, according to the weekly Freddie Mac survey.

Mortgage Rates Ride the Wave of Data, July 15, 2010

Mortgage Rate Trend Direction:     Down

Economic Reports/Rate Impact:    Jobless claims, 8:30 AM ET, Moderate Rate Impact

Home Purchase Mortgage Applications at 13-Year Low

Mortgage applications for home purchases fell to their lowest level in more than 13 years last week, amid concerns that the housing market may be entering a second downturn, or “double dip.”
 
The Mortgage Bankers Association (MBA) reported this morning that applications for home purchase mortgages fell a seasonally adjusted 3.1 percent last week, to their lowest level since December 1996.

How a HELOC can Save your Home

The lifestyles of the rich and famous aren’t as appealing these days, as the mortgage crisis takes its toll on the well heeled. The face of foreclosure is now being represented by celebrities, such as actor Nicholas Cage, overspending real housewife Teresa Giudice, and rapper Chamillionaire, who’s doing the cha cha away from his mortgage obligation. More than one in seven homeowners with properties worth in excess of $1 million are delinquent on their loans.

Preparing for emergencies   

Mortgage Rate Re-Pricing Alert 4:00 PM ET, July 14, 2010

Lenders may lower mortgage rates this afternoon from their initial pricing as the minutes of the Federal Open Market Committee meeting show a heightened sense of worry regarding an economic slowdown. Mortgage-backed securities prices have rallied in response and this could lead to favorable re-pricing.

Mortgage Rates Inclined to Move, July 14, 2010

Mortgage Rate Trend Direction:          Neutral/Down
Economic Reports/Rate Impact:           Import Prices, 8:30 AM ET, Moderate Rate Impact
                                                  &nb

One-Fourth of Americans Now Have Sub-600 Credit

Over one-quarter of Americans now have credit scores below 600, ranking them as a poor risk for lenders and making it difficult or even impossible for them to obtain mortgages, car loans, credit cards or other consumer loans. 

Making the Most of Low Mortgage Rates

According to Kenny Rogers in his song, The Gambler, “you gotta know when to hold ‘em, and know when to fold ‘em,” if “you’re gonna play the game” of poker. The same holds true for taking advantage of low mortgage rates. Considering that rates haven’t been this low in 50 years, it’s unlikely that you’ll see them again in your lifetime. In order to win at the mortgage rate game, you need to master the tricks to making the most of the current opportunity.

Mortgage Rates Respond, July13, 2010

Mortgage Rate Trend Direction:      Higher
Economic Reports/Rate Impact:     Trade Balance, 8:30 AM ET, Moderate Rate Impact
Key News:                            &nb

Mortgage Rates “Earn” their level, July12, 2010

Mortgage Rate Trend Direction:      Neutral
Economic Reports/Rate Impact:     No Economic Reports Released Today
Key News:                              &nb

Michigan Launches Mortgage Aid Program, Despite Gaps

The state of Michigan is rolling out a new anti-foreclosure program today, but many, if not most, at-risk homeowners will still have to wait to take advantage of it. 

Refinancing for the Self-employed

If you’re your own boss, you’re fully cognizant of the benefits – no one telling you what to do or when to do it, no time card to punch, to say nothing of working in your pajamas. That’s the life! But if you want to refinance your mortgage, being self-employed has a whole set of disadvantages that a nine-to-fiver doesn’t experience.

Don’t give up—the same hard work and discipline that have made you a successful businessperson can help you navigate the mortgage refinance waters. Here are five tips that will help:

Mortgage Rates Stay the Course, July 9, 2010

Journey on a switchback trail
 
The shortened holiday week saw big swings in the stock market and sharp changes in direction in
mortgage-backed securities (MBS) pricing.

Low Mortgage Rates Stick, July 9, 2010

Mortgage Rate Trend Direction:   Neutral

Economic Reports/Rate Impact:   No official reports released today

Key News:                                    China Currency Value, European Debt

Summary

Home Improvement on a Budget

If a man’s home is his castle, it’s important to keep it updated. Sure you want things to last forever, but reality has a different plan. If you’ve been dreaming about updating your outdated kitchen, there’s no time like the present to beautify.

Price and plan

NYT Study: Wealthy Far More Likely to Default on Mortgages

Wealthy homeowners are far more likely to be delinquent on their mortgages than less affluent borrowers, according to a new study by the real estate analysis firm Core Logic. 

Mortgage Rate Re-Pricing Alert 3:10 PM ET, July 8, 2010

Lenders may lower mortgage rates this afternoon from their initial pricing as financial and technology stocks have given up earlier gains. The result has been increased interest in mortgage-backed securities which leads to lower mortgage rates.

Mortgage Rates Get Bumped, July 8, 2010

Mortgage Rates Get Bumped, July 8, 2010               
 
Mortgage Rate Trend Direction:         Up
Economic Reports/Rate Impact:         Jobless Claims, 8:30 AM ET, Moderate Rate Impact
Key News:                         

Home Prices Show Strong Quarterly Increase

Boosted by the homebuyer tax credit, U.S. home prices posted a 5.2 percent gain in the most recent quarter of the year and are up 8.8 percent from one year ago.

Another Week of Record Low Mortgage Rates

Mortgage rates fell to new record lows yet again this week, the third consecutive week that interest rates have set new record lows in the weekly Freddie Mac rate survey. 

Second Mortgage: Choosing the Right One

If you need money and you have accumulated equity in your home, a second mortgage may be a good choice, as long as you clearly understand the various options available. It’s important to become an educated consumer, though, and carefully study the costs versus the benefits. Otherwise, you may become as confused as Yogi Berra who said, “When you get to the fork in the road, take it.”

Home equity loan versus HELOC

Low Rates Spur Interest in Refinancing

Mortgage refinance applications rose more than 9 percent last week, as consumers sought to take advantage of interest rates that remained near record lows.

Finding a Trustworthy Reverse Mortgage Counselor

With the recession of the past few years causing retirement funds to disappear more quickly than Lily Tomlin in The Incredible Shrinking Woman, many seniors are extremely nervous about keeping up their standard of living. The lucky ones, who have accumulated substantial equity in their homes, have the luxury of tapping into that equity with a reverse mortgage if their financial situation becomes precarious.

Mortgage Rate Re-Pricing Alert 3:45 PM ET, July 7, 2010

Lenders may increase mortgage rates again as the stock market rally has accelerated. Analysts attributed the rally in stocks and the corresponding sell-off in mortgage-backed securities to a brighter outlook for financial-related companies and bargains among industrial and technology companies.

Mortgage Rates Seek Direction as Refinance Activity Soars, July 7, 2010

Mortgage Rate Trend Direction:         Neutral
Economic Reports/Rate Impact:       No data released today
Key News:                                              European Bank Stress Tests
 
Summary
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Mortgage Rate Re-Pricing Alert 1:35 PM ET, July 7, 2010

Lenders may increase mortgage rates from their initial morning pricing as a rally in the stock market has made bonds and mortgage-backed securities (MBS) less popular in trading today. After a string of down days in the stock market, traders are finding good opportunities to purchase shares of companies at lower prices.

Mortgage Rate Re-Pricing Alert 3:55 PM ET, July 6, 2010

Lenders may provide a second round of price improvements today as mortgage-backed securities have risen in value after a dramatic reversal in the stock market.

Mortgage Rate Re-Pricing Alert 1:00 PM ET, July 6, 2010

Lenders may lower mortgage rates from their initial morning pricing as concerns about economic growth across the world have made mortgage-backed securities (MBS) popular in trading today. A downgrade of retail stocks by Citigroup has led the stock market to give up much of its earlier gains.

Mortgage Rates to Hold Levels, July 6, 2010

Mortgage Rate Trend Direction:         Neutral
Economic Reports/Rate Impact:        ISM Services Index, 10:00 AM ET, Moderate Rate Impact
Key News:                                               European Debt, China and US Economic We

The Trouble with HELOCs

The beautiful and fragrant rose has a dark side—if you’re unprepared when you touch the stem, you’re bound to be wounded by a prickly thorn. Like the rose, a home equity line of credit (HELOC) can be a beautiful financial instrument, especially if you need funds for home improvements or unanticipated medical expenses. But if you’re not careful, your finances may get pricked by a painful thorn, and you may bleed for years to come.

Home equity line of credit

Mortgage Help for Unemployed Homeowners

Unemployed homeowners can now get help with their mortgage payments while they look for new work, under the federal Home Affordable Unemployment Program.

Massachusetts Soft Second Mortgage Boosts Purchasing Power

For potential first-time homebuyers, affordability can be a big challenge. In addition to coming up with a down payment and money for closing costs, even being able to afford the monthly payments on a decent home can be a major obstacle.
 
But suppose you could take a big chunk out of that mortgage payment for the first few years of the loan?

Refinance before Window of Opportunity Closes

Many people were kicking themselves last year because they thought they had missed the opportunity to refinance into historically low rates. What no one realized, however, was that mortgage rates would continue to drop, continue to make history, and continue to give people who couldn’t close the refinancing window a chance to refinance into an even better mortgage rate. If you’ve been on the sidelines, it may be time to step out onto the playing field, and make your move.

If you’re ready to take action, here are some tips for success.

Mortgage Rates Get the “Jobs” Treatment, July 2, 2010

Mortgage Rate Trend Direction:      Up
Economic Reports/Rate Impact:     Non-Farm Payroll Report, 8:30 AM ET, High Rate Impact
                             &nbs

Mortgage Rate Re-Pricing Alert 10:45 AM ET, July 2, 2010

Lenders that may have initially increased mortgage rates today, may reverse course. Mortgage-backed securities prices have strengthened, though like yesterday, volatility has been high. This up and down pattern may continue throughout the day. A report on new factory orders, released at 10:00 AM ET showed a much larger drop than anticipated. Mixed data brings mixed results in the market.

Weekly Mortgage Rate Review, July 2, 2010

Mortgage Rates— Walking Up the Down Escalator
 
 As a child, despite the admonitions of our parents, most of us found a way to try a “reversal”, going down an escalator then—before reaching the bottom—heading back up. The challenge was too much to resist—to overcome the forces of a machine (not to mention gravity) and prove our strength superior.

Census Layoffs Mean Economy Shed Jobs in June

The economy shed 125,000 jobs in June, as moderate growth in private employment was offset by scheduled layoffs of large numbers of temporary workers hired to conduct the 2010 Census. 

Mortgage Rates Set Record Lows for Second Week

Mortgage interest rates fell to new lows again this week, with 30- and 15-year fixed-rate loans and 5-year adjustable rate mortgages (ARMs) all breaking their previous records set just last week. 

Mortgage Rates Hold Lows at Start of 3rd Quarter, July 1, 2010

Mortgage Rate Trend Direction:      Neutral
Economic Reports/Rate Impact:    Jobless Claims, 8:30 AM ET, Moderate Rate Impact
                              &nb

Mortgage Rate Re-Pricing Alert 3:00 PM ET, July 1, 2010

Lenders may lower mortgage rates from their initial morning pricing as mortgage-backed securities prices have risen in late trading. It appears that the volume of negative economic news today has convinced traders that the US economy is weakening rapidly.

Supporting our Warriors with VA Loans

There isn’t enough gratitude in the world to give thanks to the men and women who sacrifice their lives to defend our freedoms. Our first President, George Washington, who said that “When we assumed the Soldier, we did not lay aside the Citizen,” would be very proud of one way that America supports its veterans—by helping them get mortgage loans, no matter what kind of challenging lending environment exists.
   
Understanding Veteran’s Administration loans

Does Home Value Affect Your Ability to Refinance?

What are your chances of refinancing your mortgage? Is it going to be a struggle if you’ve got a starter home at the lower end of the market? Are banks more willing to work with someone who has a pricey, custom-built home?

Not necessarily. On both counts.

Homebuyer Tax Credits Deadline Extended

The U.S. Senate has voted to extend the deadline for the homebuyer tax credits another three months, giving buyers until Sept. 30 to close home sales qualifying for the credit. 

Pending Home Sales Plumment in May

Pending home sales dropped sharply in May, falling 30 percent following the deadline for signing sales contracts to qualify for the federal homebuyer tax credits. 

Refinance Applications Climb as Rates Drop

Mortgage refinance applications hit their highest level in over a year last week, as interest rates on fixed-rate loans fell to record- or near-record lows, according to figures released today by the Mortgage Bankers Association (MBA).

Well-Heeled Borrowers More Likely to Opt for Strategical Default

It may seem strange, but borrowers with outstanding credit and expensive homes are more likely than other homeowners to strategically default on their mortgages after falling behind on their payments. 

Mortgage Rate Re-Pricing Alert 12:00 PM ET, June 30, 2010

Lenders may raise mortgage rates from their initial morning pricing as mortgage-backed securities prices have fallen. Today is the end of the 2nd quarter and some volatility in the markets is expected as traders adjust their mix of investments going into the 3rd quarter.

Do Mortgage Rates Continue Fall or Hit a Wall? , June 29, 2010

Mortgage Rate Trend Direction:       Down
Economic Reports/Rate Impact:      Case-Shiller Home Price Index, 9:00 AM ET, Moderate Rate Impact
              &n

Home Prices Up in April: Standard & Poor's

Housing prices turned upward in April, posting a seasonally adjusted monthly gain of 0.4 percent, according to the Standard & Poor’s/Case-Shiller Home Price Index of 20 major U.S.

Mortgage Rate Re-Pricing Alert 12:35 PM ET, June 28, 2010

Lenders may lower mortgage rates from their initial morning pricing as concerns about economic growth have made bonds and mortgage-backed securities (MBS) popular in trading today. Commitments by world leaders to curtail government spending coupled with uncertainty regarding the unemployment situation in the US, are causing investors to increase their purchases of “safe” investments like MBS. Mortgage rates continue to hit new all-time lows.

Mortgage Rates Begin Week at Records, Head Even Lower, June 28, 2010

Mortgage Rate Trend Direction      Down
Economic Reports/Rate Impact     Personal Income and Spending, 8:30 AM ET, Moderate Rate Impact
Key News                          &nbs

Incomes Up, But Spending Weak

Personal incomes rose 0.4 percent in May, but consumers held the lid on spending, driving up the savings rate while limiting the increase in personal consumption to 0.2 percent for the month.
 
The increase in incomes was largely in line with what economists had expected, but the boost in savings was not.

Delinquencies Down, But Foreclosures Up

Fewer homeowners are falling behind on their mortgage payments, but those already delinquent are being foreclosed upon at a sharply higher rate as well.
 
The percentage of homeowners who are current on their mortgage payments increased for the first time in two years during the first quarter of 2009, according to a new report by the Office of Thrift Supervision (OTS) and Office of the Comptroller of the Currency (OCC).

Fannie Mae Cracking Down on Walk-Away Defaults

Fannie Mae, the nation’s largest secondary mortgage lender, is taking steps to discourage borrowers from simply walking away from a mortgage where they owe more than the property is worth. 

Mortgage Rates to See Modest Improvement, June 25, 2010

Mortgage Rate Trend Direction           Down
Economic Reports/Rate Impact          Final GDP 8:30 AM ET, Moderate Rate Impact
                                                     &nbs

Mortgage Rates to Hold Levels, June 25, 2010

Mortgage Rate Trend Direction           Neutral
Economic Reports/Rate Impact          Final GDP 8:30 AM ET, Moderate Rate Impact
                                                     &

Mortgage Rates Bounce Around, Regain Lows, June 25, 2010

Follow the bouncing ball
 
Keeping up with mortgage pricing this week could have made you queasy.

Mortgage Rate Re-Pricing Alert 10:50 AM ET, June 25, 2010

Lenders may lower mortgage rates from their initial morning pricing. In a volatile market mortgage-backed securities have rallied while stocks have declined. Concerns over economic growth are positive for mortgage rates.

Mortgage Rate Re-Pricing Alert 1:15 PM ET, June 24, 2010

Lenders may raise mortgage rates from their initial morning pricing as early morning gains in the mortgage-backed securities (MBS) market have reversed. Following a 1:00 PM ET auction of 7-Year US Treasury Notes, the MBS markets are losing strength. In an unusual contradiction, the auction was strong, demonstrating demand for “safe” investments such as bonds, but MBS prices and the 10-Year US Treasury bond have dropped, nevertheless. Adding to the unusual market activity, the stock market has continued to be weak throughout the day.

$1.5 Billion Released to 5 States for Mortgage Relief

The Obama Administration has authorized the release of $1.5 billion for foreclosure prevention efforts in the five states hardest hit by the housing crisis, beginning almost immediately.
 
The funds will be divided among programs in Arizona, California, Florida, Michigan and Nevada that were specifically developed for the purpose.

Mortgage Rates Hit New Record Lows - Again

Mortgage rates fell to new record lows across the board this past week, according to the new survey out this morning by Freddie Mac.
 
The average rate on 30-year fixed-rate loans fell to an all-time low 4.69 percent, down from 4.75 percent last week.

Mortgage Rates: New Lows Again Today?, June 24, 2010

Mortgage Rate Trend Direction           Down
Economic Reports/Rate Impact          Durable Goods, 8:30 AM ET, High Rate Impact
                                                     &nb

Fed Decision to Guide Mortgage Rates, June 23, 2010

Mortgage Rate Trend Direction      Neutral/down
Economic Reports/Rate Impact     New Home Sales, 10 AM, Moderate Rate Impact
                              

Mortgage Rate Re-Pricing Alert 10:15 AM ET, June 23, 2010

Lenders may lower prices this morning as the new home sales report showed the lowest volume of transactions ever recorded since the report was first published in 1963. Mortgage-backed Securities have rallied as this report signals a weakness in the US economy which means companies may have difficulty generating revenue. Stock prices have fallen sharply in response to the news.

Mortgage Applications Back Down Again

Mortgage applications fell last week after a brief surge, despite a slight relaxation in interest rates, according to figures released this morning by the Mortgage Bankers Association.
 
Applications were down a seasonally adjusted 5.9 percent, after a brief  jump of 17.7 percent the week before.

Mortgage Rate Re-Pricing Alert 2:00 PM ET, June 23, 2010

Lenders who improved their pricing early this morning after the news that new housing sales had dropped to their lowest level since 1963 may take back the improvement. The reason was a poor auction of US Treasury 5-Year Notes at 1:00 PM. Treasuries fall into the same category as mortgage-backed securities in the eyes of investors. They are considered relatively “safe” investments. Any lack of demand for treasury notes can be interpreted as potentially a sign that mortgage-backed securities may not be as desirable. This has caused mortgage pricing to worsen.

New Opportunities for Refinancing?

Mortgage rates are way down again – and refinancing is up. If you missed out on last year’s ultra-low rates, are your chances any better of refinancing this time around?

Mortgage Rates Seek Direction, June 22, 2010

Mortgage Rate Trend Direction      Down
Economic Reports/Rate Impact     Existing Home Sales, 10 AM, Moderate Rate Impact
Key News                             

Existing Home Sales Drop Unexpectedly

Existing home sales fell 2.2 percent in May, surprising experts who had expected a continued increase from sales spurred by the homebuyer tax credits. 

Mortgage Rate Re-Pricing Alert 2:15 PM ET, June 22, 2010

Lenders may lower mortgage rates from their initial morning pricing after mortgage-backed securities have rallied. A very successful auction of 2 year notes by the US Treasury has demonstrated a continuing appetite for “safer” investments. Mortgage-Backed Securities fall into this category.  

Big Changes in Mortgage Rates Ahead?, June 21, 2010

Mortgage Rate Trend Direction      Up
Economic Reports/Rate Impact     No economic data of significance released today
Key News                             &nb

Mortgage Rate Re-Pricing Alert 12:35 PM ET, June 21, 2010

Lenders may lower mortgage rates from their initial morning pricing as the stock market has lost much of its early strength and bond prices are sharply higher from their levels when lenders initially priced. These conditions make favorable rate changes possible at midday.

Total Denials Exceed Permanent Loan Modifications

Nearly half of all borrowers denied permanent loan modifications under the Making Home Affordable Program (MHAP) have been able to arrange for alternative modifications through their lenders, the government announced today. 

Will Mortgage Rates Be-Witched?, June 18, 2010

Mortgage Rate Trend Direction      Neutral/Up
Economic Reports/Rate Impact     No economic data of significance released today
Key News                            &

Mortgage Rates Up Slightly for the Week, June 18, 2010

Data, News and Witching Drives the Market
 
The ups and downs of mortgage pricing continued this week driven in large measure by the economic reports released in the US, by economic news from Europe and the quadruple witching expiration of futures and options.

Mortgage Frauds Rise With Soft Economy

Incidents of suspected mortgage fraud increased 5 percent during Fiscal Year 2009, according to the FBI, including emerging trends of perpetrators targeting foreclosed properties and government economic stimulus programs.

Senate Votes to Extend Tax Credit Deadline

The U.S. Senate has approved a three-month extension for closing home sales that qualify for the federal homebuyer tax credit.
 
The measure would extend until Sept. 30 the current June 30 deadline for homebuyers to close sales to qualify for either the $8,000 first-time homebuyer or $6,500 repeat homebuyer tax credits.

Mortgage Rates Stable, Applications Up

Fixed-rate mortgages edged up slightly this week, but still remained near all-time lows, according to this morning’s weekly rate survey from Freddie Mac.

Mortgage Rate Re-Pricing Alert 12:15 PM ET, June 17, 2010

Continued improvement in prices for mortgage-backed securities may enable lenders to improve their pricing to consumers even more. After higher than expected Jobless Claims and a very poor report from the Philadelphia Federal Reserve Bank on manufacturing activity in its region, investors have sought the relative safety of bonds over stocks. When economic news shows signs of weakness, investors grow concerned over companies’ ability to earn revenue or profits. In this environment they tend to sell stocks and buy bonds which returns are more certain.

Mortgage Rate Re-Pricing Alert 10:30 AM ET, June 17, 2010

Lenders may lower mortgage rates from their initial morning pricing as bond prices have rallied. After CPI data and Jobless claims data caused initial pricing to be improved, the Philadelphia Fed Index came in very poor and has moved mortgage-backed securities (MBS) even higher. The higher MBS prices, the lower the rate on mortgages. Continued volatility may move markets again today.

Mortgage Rates Impacted by Data, June 17, 2010

Mortgage Rates Impacted by Data, June 17, 2010
 
Mortgage Rate Trend Direction       Down
Economic Reports/Rate Impact     CPI, 8:30 AM ET, High Rate Impact

New Bill Could Make FHA Loans Less Appealing

New legislation intended to shore up FHA finances could end up making the agency’s home mortgages a lot less attractive to the people they’re supposed to help. 

Fannie, Freddie to Delist from NYSE

Government-supported lenders Fannie Mae and Freddie Mac have been directed to withdraw their stock from listing on the New York Stock Exchange (NYSE), after continued weak performance of their common stock.
 
The order came from the Federal Housing Finance Agency, which has been the two lender’s parent agency since they were placed in conservatorship in September 2008.

Single-Family Housing Starts Down Sharply

Housing construction starts fell 10 percent in May, including a 17.2 percent drop in single-family homes, as buyer interest waned following the end of the federal homebuyer tax credit.
 
According to the Commerce Department’s monthly new residential construction report, released this morning, construction starts on single-family homes in May were at an annual rate of 468,000, down from an adjusted rate of 568,000 in April.
 
At the same time, construction starts on buildings of five units or more, includin

Mortgage Rates Move Lower on Data, June 16, 2010

Mortgage Rate Trend Direction      Down
Economic Reports/Rate Impact     Housing Starts, 8:30 AM ET, Moderate Rate Impact
                              &n

Mortgage Rates Steady to Better, June 15, 2010

Mortgage Rates Steady to Better, June 15, 2010
 
Mortgage Rate Trend Direction      Neutral/Down
Economic Reports/Rate Impact     Import Prices, 8:30 AM ET, Low Rate Impact

Mortgage Rate Re-Pricing Alert 12:45 PM ET, June 15, 2010

Mortgage Rate Re-Pricing Alert 12:45 PM ET, June 15, 2010
 
Lenders may increase mortgage rates from their initial morning pricing as bond prices have declined. Today continues to be extremely volatile in the bond markets. The rise in stocks has taken over as the primary driver of bond prices downward. Mortgage-backed securities which are bonds backed by pools of mortgages have lost their popularity at midday resulting in potential mortgage rate re-pricing.

Demographics Will Spur Housing Recovery: Study

Although the housing market is likely to remain weak for some time, pent-up demographic factors will likely spur a return to former rates of growth within the next few years, according to a new study released today.

The United States will likely add another 12.5 million to 15 million households this decade, equaling or exceeding the housing boom years of 1995-2005 and boosting home sales and new construction. That’s according to the new report released this morning by Harvard University’s Joint Center for Housing Studies.

Mortgage Rate Re-Pricing Alert 3:15 PM, June 14, 2010

Mortgage Rate Re-Pricing Alert 3:15 PM ET, June 14, 2010
 
Lenders may lower mortgage rates from their initial morning pricing as bond prices are sharply improved from this morning. Today has been extremely volatile in the bond markets.

Mortgage Rates Start Week at Record Lows, June 14, 2010

Mortgage Rates Start Week at Record Lows, June 14, 2010

Mortgage Rate Trend Direction      Up

Poor Math Skills Linked to Mortgage Defaults

Was the subprime mortgage crises caused by poor math skills?

A recent study suggests that borrowers who do poorly on a basic math test are more likely to miss mortgage payments and eventually fall into foreclosure. Persons who performed poorly on the test were about four times as likely to go into foreclosure as those who performed best.

Legislation Would Extend Tax Credit Deadline

Legislation to extend the closing date to Sept. 30, 2010 for home purchases to qualify for the homebuyer tax credits has been introduced in the U.S. Senate.

House Approves Higher Premiums for FHA Loans

It looks like FHA mortgages are about to become more costly, now that the U.S. House of Representatives has approved a bill authorizing an increase in the annual premium paid by borrowers. 

Mortgage Rates End Week Lower Despite Higher Rate Expectations June 11, 2010

 

Mortgage Rates End Week Lower Despite Higher Rate Expectations  June 11, 2010

Mr. Toad’s Wild Ride

Mortgage Rates Continue Volatility, June 11, 2010

Mortgage Rates Continue Volatility, June 11, 2010                      

 

Mortgage Rate Re-Pricing Alert 12:30 AM ET, June 11, 2010

Mortgage Rate Re-Pricing Alert 12:30 AM ET, June 11, 2010

Banks Repossesions Rise, New Foreclosures Down

Overall foreclosure activity fell in May, even as the number of homes actually repossessed by lenders hit an all-time high that month, according to today’s monthly report from RealtyTrac. 

30-Year Rates Barely Above Record Low

Mortgage rates fell to within a whisker of all-time lows across the board this past week, according to new figures this morning from Freddie Mac.
 
Both the 15-year fixed rate mortgage and one-year adjustable rate mortgage (ARM) fell to all-time lows, while only a single basis point – one hundredth of a percent – separated the 30-year fixed rate mortgage and 5-year ARM from matching their all-time lows in the Freddie Mac survey.
 
The average 30-year fixed rate mortgage was at 4.72 percent for the week ending today, wit

Mortgage Rates Reach New Lows, More Records Ahead?, June 10, 2010

Mortgage Rates Reach New Lows, More Records Ahead?, June 10, 2010

Mortgage Rate Trend Direction      Up

Economic Reports/Rate Impact     Jobless Claims, 8:30 AM ET, Moderate Rate Impact

Mortgage Rate Re-Pricing Alert 2:00 PM ET, June 10, 2010

Mortgage Rate Re-Pricing Alert       2:00 PM ET, June 10, 2010

 

June 30 Deadline Looms for Tax Credit Closings

The biggest date on the mortgage calendar right now is June 30. That’s the deadline for closing a home sale to qualify for the federal homebuyer tax credits. Miss it, and homebuyers are out up to $8,000 they could have taken right off the top of their 2010 tax bill. 

Mortgage Refinances Decline Despite Low Rates

Applications to refinance existing mortgages took a big drop last week, even as long-term mortgage rates declined slightly, according to figures released today by the Mortgage Bankers Association (MBA).
 
The seasonally adjusted MBA Refinance Index dropped 14.3 percent from the previous week, part of a 12.2 percent decline in overall mortgage applications.

Mortgage Rate Re-Pricing Alert 2:00 PM ET, June 9, 2010

Mortgage Rate Re-Pricing Alert 2:00 PM ET, June 9, 2010

Mortgage Rates Historically Low, But Can it Last?, June 9, 2010

Mortgage Rates Historically Low, But Can it Last?, June 9, 2010

Mortgage Rate Trend Direction        Neutral/Up

Mortgage Rates Try to Hold Record Lows, June 8, 2010

Mortgage Rates Try to Hold Record Lows, June 8, 2010

Mortgage Rate Trend Direction      Neutral/Up

Economic Reports/Rate Impact    No Reports released today

Key News                                        European Currency and Debt status

Summary

IAS Reports Home Prices Up in April

U.S. housing prices rose for the second consecutive month, according to real estate data firm Integrated Asset Services (IAS), posting a 0.9 percent gain in the month of April.

Mortgage Rates Steady to Start the Week, June 7, 2010

 

Mortgage Rate Trend Direction Neutral/Down

Economic Reports/Rate Impact No Reports released today

Key News    Decline in value of Euro Currency 

Summary 

Mortgage Rate Re-Pricing Alert 4:15 PM ET, June 7, 2010

Lenders may lower mortgage rates from their initial morning pricing as the stock market is sharply lower in late trading and bond prices are sharply higher. These conditions make favorable rate changes possible at the end of the day. The lack of a stock market rebound earlier in the day after last Friday’s big losses was given by analysts as a reason for the sell-off at the end of the day. Also, the US dollar rose to its highest level in over four years today, demonstrating continued worries about European country debt.

Countrywide to Pay $108 Million Settlement for Overcharges

Two subsidiaries of former mortgage lender Countrywide Financial will pay out $108 million to settle an claims that they charged excessive fees to borrowers in default or Chapter 13 bankruptcy, the Federal Trade Commission (FTC) announced today.
 
According to the FTC, Countrywide charged inflated fees to borrowers who were behind on their mortgage payments for default-related services meant to protect the lender’s interest in the property.

Weak Jobs Report Raises Concerns for Economy

A weaker-than-expected jobs report sent stocks tumbling this morning, despite an improvement in the unemployment rate. 
 
Although bad news for the economy in general, this morning’s news does suggest that mortgage interest rates will remain subdued for at least a while longer.
 
The Labor Department reported this morning that nonfarm payroll employment grew by 431,000 in May, largely due to 411,000 temporary government workers hired for the 2010 Census.

Delinquent Borrowers May Qualify for Principal Reductions

Bank of America is offering to reduce the principal on certain mortgages where the borrower owes more than the home is worth as part of a program to help homeowners avoid foreclosure, the lender announced today.
 
The bank said it has begun contacting borrowers with certain types of loans to determine their eligibility for the program, beginning with those who are at least 120 days delinquent on their loans.
 
The initiative, the National Homeownership Retention Program (NHRP), is being conducted as part of the company’s effo

Mortage Rates Hold Steady

Mortgage rates held steady this past week, remaining near all-time lows, according to the weekly rate survey from Freddie Mac.

Fixed-rate mortgages were virtually unchanged, with both 30-and 15-year rates moving only a single basis point. In the case of 15-year loans, the average rate declined to 4.20 percent, a new all-time low, with 0.7 points paid.

Home Prices Up, Fewer Foreclosures for Sale

U.S. home prices are up 6.8 percent from one year ago, while the share of foreclosed properties on the market has dropped significantly, according to figures released today by real estate valuation company Clear Capital. 

Pending Home Sales Up for Third Straight Month

Signed contracts for home sales rose 6.0 percent in April, as homebuyers sought to take advantage of expiring tax credits before an April 30 deadline, according to figures released today by the National Association of Realtors (NAR).
 
It was the third consecutive monthly increase reported by the NAR, and slightly stronger than analysts had expected.

Residential Construction Rises in April

Private residential construction rose a seasonally adjusted 4.4 percent in April, as homebuyers moved to take advantage of an expiring federal tax credit. 

Why Are Mortgage Rates Still So Low?

Why are mortgage interest rates still so low? According to conventional wisdom, interest rates were supposed to begin creeping up in April, right after the Fed quit buying mortgage-backed securities. Instead, they’ve lower than ever. 

Incomes Up, But Spending Flat

Consumers held the line on spending in April, putting more into savings even as incomes rose.

So You're Ready to Use a Professional Mover?

Ok, so you’ve done all the work of finding a house, arranging for a mortgage and closing the sale. Now all you have to do is move in. So how do you go about finding a good moving company? 

Mortgage Rates At or Near Record Lows - Again

Mortgage rates fell again this past week, hitting record or near-record lows, according to the weekly Freddie Mac survey. 

New Homes Sales at Two-Year High

New home sales surged in April to their highest rate in two years, as purchasers took advantage of expiring tax credits for new and repeat homebuyers. 

Conventional Thinking About Strategic Defaults May be Wrong

Why do homeowners choose to deliberately default on a mortgage? The common wisdom is that it’s a purely calculated choice, made by carefully weighing the financial pros and cons. But much of that common wisdom is wrong, according to the person who put the spotlight on so-called “strategic defaults” in the first place. 

Home Prices Decline Despite Tax Credit

Home prices fell in the first quarter of the year, despite tax incentives and continued low interest rates, suggesting renewed weakness in the housing market, according to figures released today by Standard & Poor’s/Case-Shiller.

Home Sales Post Third Consecutive Gain

Existing home sales rose for the third consecutive month in April, as buyers took advantage of a soon-to-expire tax credit, according to a report out this morning by the National Association of Realtors (NAR). 

HAMP Rejections Soar; New Modifications Dwindle

New borrowers admitted to the government’s Home Affordable Modification Program (HAMP) fell in April to their lowest level since the program began, while the number of homeowners rejected for permanent assistance continued to climb. 

Delinquencies Rise, Foreclosure Rate Sets Record

More than one borrower in 10 is behind on their mortgage payments, according to a new report, as mortgage delinquencies continue to rise despite signs of an economic recovery. 

Do You Need an Inspection On a Newly Built Home?

One of the mistakes that many people make when buying a newly built home is to skip the home inspection. After all, they reason, it’s a brand new house – everything should be perfect. And the city or other local government will inspect it anyway in order to issue a certificate of occupancy. 

Low Rates Make ARMs an Attractive Option Again

There’s a lot of talk going around about how borrowers should once again consider adjustable rate mortgages (ARMs). And no wonder –interest rates on ARMs are astonishingly low right now, with many lenders offering initial rates well below 4 percent. 

Mortgage Rates Fall, But So Do Home Purchase Applications

Mortgage applications for home purchases fell to their lowest level in 13 years last week, as home buying activity dried up following the end of a popular tax credit.

Senate Approves Rule Authorizing Free Credit Scores

An amendment adopted by the U.S. Senate on Monday would give consumers free access to their credit scores – but only in limited situations.

Mortgage Rate Increases Likely to Be Modest: Fannie Mae

Fixed rate mortgages will rise this year, but not enough to choke off home buying activity by consumers, according to a new forecast out today by Fannie Mae.
 
The average rate on 30-year fixed rate mortgages should rise by about half a percent, the lender predicts, to around 5.5 percent, by year’s end.

How Much Time Should You Spend Mortgage Shopping?

How much time should you spend shopping for a mortgage? How much effort do you need to put in to be sure of getting the best deal?
 
A recent report by the mortgage data company Zillow made minor waves when it found that one-third of borrowers spent only two hours or less researching their mortgage. That’s the same amount of time the average consumer spends shopping for a TV.
 
On average, borrowers spent five hours researching mortgages.

30-Year Rates Fall Back Below 5 Percent

Mortgage rates dropped to their lowest levels of 2010 this week, with 5-year adjustable rate mortgages hitting an all-time low, according to the Freddie Mac weekly rate survey. 

Avoiding Foreclosure Through a Reverse Mortgage

With foreclosures continuing to rise, a lot of financially stressed homeowners are looking to loan modifications and similar measures to save their homes. But there’s one fairly effective strategy that hasn’t been getting a lot of attention – a reverse mortgage.
 
Of course, a reverse mortgage can’t help everyone – they’re pretty much limited to homeowners age 62 and above (although there are exceptions).

Foreclosures Post First Annual Decline in Three Years

Foreclosures posted their first annual decline in at least three years in April, providing a hopeful sign that the nation’s housing crisis is bottoming out.
 
A total of 333,387 homes were subjected to foreclosure filings during the month, according to figures released today by the foreclosure marketing firm RealtyTrac, representing a 2 percent decline from one year ago.

Understanding and Shopping for Title Insurance

If you buy or refinance a home, you’re going to need title insurance. And if you’re going to get title insurance, you ought to understand what you’re getting. 

Most Cities Show Annual Gains in Home Values

A majority of U.S. cities are seeing gains in housing prices, even home values nationwide have remained flat, according to new figures from the National Association of Realtors (NAR).
 
Single-family home values in three out of five U.S. metropolitan areas surveyed were higher in the first quarter of 2010 than they were one year before, according to the NAR, with one in five posting double-digit increases.

Signs of Improvement in Commercial Real Estate

Senior real estate executives are beginning to see signs of improvement in the commercial real estate market, according to a new survey by a leading industry group.

Nearly One-Fourth of Mortgages Now Underwater

Nearly one-quarter of all U.S. mortgages are now underwater, according to figures released today by real estate data company Zillow. 

Frozen Jumbo Loan Market Beginning to Thaw

Spring is in the air – for the jumbo mortgage market. With last week’s announcement of the first securities sale backed by jumbo loans in two years, there are encouraging signs that high-value loans are becoming easier to obtain.

Arranging for Your Own Home Value Appraisal

An appraisal isn’t something most homeowners worry about. When you buy a home, the lender typically arranges for an appraisal and the buyer pays for it, but otherwise, it’s not something that most homeowner pay a lot of attention to.

Home Prices Down 5 Percent in Most Recent Quarter

U.S. home prices fell 5 percent in the last quarter reported, as foreclosures posted a slight increase in their share of the home sales market, according to new figures from real estate data company Clear Capital.

Mortgage Rates at Six-Week Low

Mortgage rates fell again this past week, with 30-year fixed rate loans averaging an even 5.0 percent, according to the newest Freddie Mac weekly rate survey.

Mortgage Applications Rise as Tax Credit Ends

Applications for home mortgage rose in the final week of April, as borrowers sought to take advantage of the expiring home purchase tax credits for new and repeat home buyers. 

Pending Home Sales Up Again

Pending home sales rose in March, as the spring homebuying season got underway and buyers sought to take advantage of a soon-to-expire tax credit. 

Mortgage Credit Certificate Offers Tax Savings for First-Time Homebuyers

If you’re a first-time homebuyer, there’s a good chance you’ve never heard of the Mortgage Credit Certificate Program. Many aspiring homeowners have not. And that’s too bad, because it can save you some serious money – not just right now, but in the years to come as well. 

Consumer Spending, Incomes Rise

Consumer spending and personal incomes both rose in March for the sixth consecutive month, raising hopes of a sustained, though weak, economic recovery.

Web Site Helps Identify Potential Loan Modification Scams

Mortgage fraud is a growing problem. But there are some new tools that can help you avoid becoming a victim or help catch the scammers if you do get burned.

New Mortgage Possible Two Years After Short Sale

Financially pressed homeowners who voluntarily surrender their homes instead of going through foreclosure could buy a new home in as little as two years under new guidelines set by Fannie Mae. 

Home Prices Up, But Weakness Remains

Home prices have posted their first annual increases in three years, according to two leading surveys released this week, but month-to-month figures are showing signs of weakness in the housing market. 

Home Vacancy Rates Decline Slightly

Vacancies for both homeowner and rental housing declined in the first quarter of 2009, according to figures released today by the Census Department.

Choosing a Mortgage Lender

Choosing a mortgage lender can be one of the most intimidating parts of getting a home loan. A quick check online will show there are literally thousands to choose from. So how do you decide whom to pick? 

New Home Sales Post Biggest Increase in 50 Years

New home sales posted their biggest monthly increase in half a century in March, bouncing back from an all-time low in February with a whopping 27 percent increase.

Home Sales Post First Increase in Four Months

Existing home sales posted a strong increase in March, rising a seasonally adjusted 6.8 percent as home buyers moved to take advantage of a soon-to-expire federal tax credit. 

Lenders Cutting Fees on Reverse Mortgages

There’s renewed interest in reverse mortgages these days, as many lenders have slashed the fees associated with them. But is it enough to make them a good deal for older homeowners looking to tap the equity in their homes?

Mortgage Rates Down, Applications Up

Mortgage applications surged last week, as borrowers sought to take advantage of a drop in interest rates and qualify for a soon-to-expire homebuyer tax credit.

Leading Economic Indicators Rising Steadily

The Conference Board Leading Economic Index (LEI) rose again in March, reaching an all-time high after a year of steady increases. But consumers still remained pessimistic about the direction of the economy, as the Board’s gauge of consumer expectations fell for the third month in a row.

Should You Hire an Attorney When Buying a Home?

One part of the homebuying and mortgage process that many people forgo is hiring an attorney to review everything to make sure it’s all in order. But how much of a risk are they taking by doing so? 

Housing Starts, Building Permits Looking Stronger

New home construction starts have risen in each of the first three months of the year, following a small increase in March and revised data that turned a previously reported sharp downturn in February into a small increase.

Mortgage Rates Fall Back After Spike

Mortgage rates cooled off last week, backing down from an abrupt spike that followed the end of a Federal Reserve program that had kept rates low for more than a year.

Can a Mortgage Audit Fend Off Foreclosure?

Mortgage audits are a strategy that’s growing in popularity as a way for financially pressed homeowners to avoid foreclosure. The idea is that, by uncovering legal errors or other problems with the mortgage, a homeowner can gain leverage to renegotiate the loan and perhaps even reduce the amount owed.

Bank Repossessions Rise Sharply

Foreclosure actions have risen sharply in the early months of 2010, as lenders appear to be moving toward clearing out a backlog of distressed properties.

Vacation Home May Bring Tax Advantages

A vacation home can be a great investment from both a financial and recreational standpoint. And with tax day at hand, it’s a good time to consider some of the tax implications and benefits of owning a second home, if you’re thinking of taking the plunge in the next year or so.

Forgiven Mortgage Debt May Still Be Taxable

Did you go through a foreclosure or obtain a loan modification in the past year? Do you expect to do so in the near future? You could wind up with an unexpected and unwelcome tax bill.

Foreclosure Prevention Efforts Lagging: Gov't Report

Government efforts to stem the foreclosure crisis are struggling, with only a small fraction of at-risk homeowners actually receiving help, according to an official report released today. 

Settlement Proposed in Countrywide Suit

Customers of the former Countrywide financial services and mortgage corporation will begin receiving letters today informing them of a proposed settlement regarding an alleged theft of personal and financial information. 

Worst-hit Markets May Not Rebound Until 2025

Home prices in some major markets may not fully recover for 15 years, although other parts of the country could rebound fairly quickly, according to a new study by Fiserv.

Rate of Distressed Home Sales Increasing

Distressed home sales are rising, reaching 29 percent of all U.S. sales in January, according to the mortgage and real estate data firm First American Core Logic. 

Mortgage Assistance for Recent Graduates

Recent college or university graduates are not usually considered prime candidates for home ownership. But for those fortunate few for whom buying a home is a realistic possibility, there are a few programs available that can help you out.

Does Your Job Qualify You for a Discount Mortgage?

Can you get special assistance or qualify for a low-cost mortgage based on the type of job you have? Does working as a teacher, nurse, police officer, firefighter or other career in public service let you qualify for special mortgage programs not available to other borrowers? 

Freddie Mac Reports Sharp Increase in Mortgage Rates

Fixed-rate mortgages jumped to their highest level in eight months this past week, hitting an average of 5.21 percent on 30-year loans in today’s Freddie Mac weekly rate survey.

Understanding Different Types of Mortgage Lenders

One of the most confusing parts of the mortgage process can be figuring out all the different kinds of lenders that deal in home loans and refinancing. There are direct lenders, retail lenders, mortgage brokers, portfolio lenders, correspondent lenders, wholesale lenders and others.

Recession Shrinks Number of Independent Households

The number of households in the United States shrank by 1.2 million from 2005 to 2008, as the recession drove people to give up independent living and move in with relatives and friends.

Two-thirds Still Prefer Home Ownership to Renting

Nearly two-thirds of Americans still regard home ownership as preferable to renting, despite the sharp downturn in the housing market and widespread foreclosures, according to a new survey by Fannie Mae.

Pending Home Sales Post Big Jump

Pending home sales posted a healthy increase in February, reversing three months of weak sales, according to figures released today by the National Association of Realtors (NAR).

New Free Credit Report Rules Take Effect

Starting today, companies advertising so-called “free” credit reports online must include prominent disclosures ensuring that their products are not confused with the official federally authorized source for free credit information.

Interest-Only Loans Drying Up as Mortgage Option

If you’re looking to purchase a home or refinance a mortgage, your options are getting a bit slimmer.

Fixed Mortgage Rates Head Up

Fixed mortgage rates headed higher this past week, with the standard 30-year fixed-rate mortgage rising back above 5 percent for the first time in a month.

Low Mortgage Rates May Stick Around

Midnight has struck. The low-interest coach is turning back into a pumpkin. Borrowers who did not refinance or purchase a home by stroke of twelve have lost forever their opportunity to get a handsome prince of an interest rate.

Home Prices Up, But Trend Uncertain

Home prices rose in January, according to a leading survey, although not enough to blunt concerns over signs of renewed weakness in the housing market.

Five More States to Receive Mortgage Assistance

The Treasury Department has announced an additional $600 million in aid to help homeowners avoid foreclosure in states that have been hardest hit by the economic downturn.

New Rules Taking Effect for FHA Mortgages

If you’re thinking about taking out an FHA mortgage to buy or refinance a home, there are some new rules you need to be aware of.

Consumer Spending Up Five Straight Months

Consumer spending rose in February for the fifth consecutive month, though at a somewhat lower rate than in previous months, the Commerce Department reported today.

Should You Pay Off Your Mortgage Early?

Should you pay off your mortgage early? If you’ve come through the recent economic crisis in a position to be able to make additional payments on your home loan, this may sound like an attractive option. It’s a safe, conservative financial strategy that many find appealing after being put through the financial wringer the past few years.

Mortgage Assistance for Unemployed Announced

The Obama administration today announced new measures to provide mortgage assistance for unemployed homeowners and encourage lenders to reduce principal on “underwater” mortgages when modifying loans for at-risk borrowers.

Is Your Local Real Estate Market Overvalued?

Home prices appear to be very attractive right now, after sharp declines following the collapse of the housing bubble. It would seem to be a good time to buy, but what if prices fall still further? Is there a good way to tell if your area is overvalued?

Bank of America to Write Off Principal on Some Mortgages

Bank of America (BofA) will forgive up to 30 percent of the balance owed on certain at-risk mortgages as part of its loan modification efforts to assist homeowners in avoiding foreclosure, the bank has announced.

New Home Sales Decline Again

Sales of new single-family homes fell for the fourth month in a row in February, with the annual rate dropping to an all-time low of 308,000, according to figures released today by the Commerce Department.

Major Tax Credits and Deductions for Homeowners

With tax time approaching, the big mortgage-related issue this year is the homebuyer tax credits. But there are also a lot of other mortgage- and real-estate tax matters to be aware of as well.

Home Sales Down Slightly in February

Existing home sales stabilized in February, following two months of steep declines.

Chase Agrees to Modify Second Liens

JP Morgan Chase has become the third major lender to announce it will modify second-lien mortgages under the Obama Administration’s Home Affordable Modification Program (HAMP).

Buying a Short Sale About to Get Faster, Easier

Looking for a great deal on a home? Buying through a short sale may soon become a lot faster and easier to do, thanks to a new federal program.

Wells Fargo Joins Second Lien Modification Program

Wells Fargo has become the second bank to agree to modify second-lien mortgages under the government’s Home Affordable Modification Program (HAMP) providing mortgage relief for at-risk homeowners.

Mortgage Rates Mostly Unchanged

Mortgage rates remained stable this past week, posting only slight increases despite the approaching end of the Federal Reserve’s purchases of mortgage securities that have served to keep rates low over the past year.

Pros and Cons of Using a Mortgage Broker

Shopping for a mortgage can be an intimidating process. If you think you’d like some help, you might consider going through a mortgage broker.

Non-HAMP Loan Mods Hit 100,000 in January

Nearly 100,000 homeowners obtained private mortgage loan modifications in January, the HOPE NOW alliance has announced.

Walk-Away Foreclosure May Not Eliminate Debt

With sharp declines in home values leaving millions of homeowners “underwater” on their mortgages, there is a growing clamor that many such borrowers would be better off to simply walk away and let their property go into foreclosure.

Multiunit Housing Starts Down Sharply

New housing starts fell 5.9 percent in February, as builders cut way back on initiating construction of apartment buildings and condominium developments.

More Permanent Loan Modifications Approved

An additional 54,000 homeowners received permanent loan modifications in February under the government’s Home Affordable Modification Program (HAMP), bringing the total to 170,000.

Financing the Purchase of a Second Home

Thinking about buying a second home? If you’ve been fortunate enough to come through the economic downturn relatively unscathed, you can get some real bargains on vacation properties these days. But getting a mortgage may be a challenge, even if your own finances are in good order.

"Creative Financing" Could Hide Fraud

In the current real estate market, lots of potential home buyers are looking to pick up a great deal. But beware – some deals that look great on the outside could have a rotten core.

Retail Up, But Consumer Sentiment Down

Consumer sentiment fell in early March, despite coming on the heels of an unexpected jump in retail spending in February.

Foreclosures Down in February

U.S. foreclosure filings fell 2 percent in February, but still remain 6 percent over their rate of one year before, according to new data released today by RealtyTrac.

States Offer Low-Cost Mortgages, Down Payment Help

Do you want to buy a home but are worried about being able to get a mortgage? Don’t forget to look to your state for help.

State Unemployment Rates Slow

The number of states reporting increased unemployment declined in January, with the majority reporting a net increase in jobs, according to figures released today by the Labor Department.

Industry Report Finds Little Impact from Appraisal Rules

A widely disparaged set of new rules affecting home appraisals has actually had relatively little negative effect on real estate appraisers, according to a new study by an appraisal management company (AMC).

Consider a Credit Union for a Mortgage Loan

If you’re looking for a mortgage these days, either to buy a home or refinance your current home loan, one option you should definitely consider is a credit union.

Frank Urges Banks to Write Off Second Liens

The influential chair of the House Financial Services Committee is ratcheting up the pressure on lenders to write off nearly worthless second liens to clear the way for loan modifications to help homeowners avoid foreclosure.

Time May Be Running Out on Low Rates

If you haven’t refinanced your mortgage by now, you might want to act soon if you want to get the best rates.

FDIC's Blair Touts Writedowns on Underwater Mortgages

The FDIC is looking at principal writedowns in its loss-share agreements with failed banks as a way to help at-risk homeowners avoid foreclosure, according to FDIC Chair Sheila Blair.

Pending Home Sales Fell in January

Pending home sales fell in January, despite expectations of a boost from expanded tax credit, according to new figures from the National Association of Realtors (NAR).

Avoiding PMI with Less Than 20 Percent Down

So you’re taking out a mortgage, but can’t put up a 20 percent down payment. Are there still ways you can avoid paying PMI?

Jumbo Loans Making a Comeback

Jumbo loans are making a comeback.

After practically disappearing during 2009, jumbo mortgages are again being offered by lenders, although cautiously. Even so, that’s good news for upscale home shoppers – and great news for homeowners who already have jumbo loans and are looking to refinance.

 

30-Year Rates Back Below 5 Percent: MBA

More consumers moved to refinance their mortgages last week as rates once again dipped below the 5 percent mark, according to new information from the Mortgage Banker’s Association.

Home Affordable Refinance Program Extended

The Home Affordable Refinance Program (HARP), originally scheduled to end in June, will be extended at least one more year, the Federal Housing Finance Agency has announced.

Not All Mortgage Offers Are Good Faith Estimates

The new Good Faith Estimate (GFE) form is supposed to make it easier for borrowers to shop around for a mortgage by clearly spelling out what a lender will charge in fees and interest. However, you can still end up paying more than you expect if you’re not careful.

Consumer Spending, Manufacturing Show Gains

Consumer spending rose by half a percent in January, even as disposable income fell by nearly the same margin, according to new figures released today by the Commerce Department.

USDA Still Offers Zero-Down Mortgage

Zero-down payment mortgages have pretty much disappeared these days. But here’s a secret – there’s still a zero-down mortgage that’s readily available to most borrowers. And you don’ have to pay mortgage insurance or high interest rates.

Renting Out Your Home Instead of Selling It

Of all the strategies out there to avoid foreclosure, here’s one you may not have thought of: renting out your house.

Home Sales Post Second Big Drop

Existing home sales took another big drop in January, falling 7.2 percent after posting a record decline in December.

MBA Proposes Mortgage Help for Unemployed Homeowners

Unemployed homeowners would get reduced mortgage payments for up to nine months to help them stay in their homes, under a new proposal from the Mortgage Bankers Association (MBA).

Getting Financing to Buy Foreclosed Property

The current foreclosure crisis has created some significant opportunities for those who’d like to try investing in foreclosed properties. But with credit as tight as it is, how can you get financing to buy a property to invest in?

New Homes Sales Hit Record Low

Sales of newly built homes fell to an all-time low in January, a stunning setback for an industry that appeared to be in recovery just three months ago.

S&P Home Prices Continued Gains in December

U.S. home prices posted a slight increase in December, continuing a trend of seven months of gains, according to the newly released Standard & Poor’s/Case-Shiller home price index.

Mortgage Delinquency Rates Decline: MBA

Mortgage delinquencies on all loan types declined in the fourth quarter of 2009, raising hopes that the end of the foreclosure crisis may be in sight. 

Benefits and Risks of a Land Contract

A land contract can be an appealing option for a potential homebuyer who might have difficulty qualifying for a mortgage loan. But there are potential risks to be wary of as well.

Obama Announces $1.5 Billion for Mortgage Help

The Obama administration has announced a new initiative that will provide $1.5 billion in assistance for homeowners in the nation’s hardest-hit housing markets.

Fed Raises Short-Term Interest Rates

The Federal Reserve is making a small increase in the rate it charges banks for short-term loans, a long-anticipated first step towards backing off the easy money policy it has pursued over the past year.

Permanent Loan Modifications Nearly Double in January

The number of permanent loan modifications approved under the Home Affordable Modification Program (HAMP) nearly doubled in January, after the Obama administration stepped up the pressure on mortgage services to process applications.

Letting an ARM Reset Instead of Refinancing

If you’ve got an adjustable rate mortgage (ARM), you may be feeling some pressure to refinance now before your rate resets. However, for some borrowers, waiting may not be such a bad idea.

Mortgage Delinquencies Hit New Record

Mortgage delinquencies – the percentage of homeowners 60 days or more past due on their home loan payments – hit an all-time high in the fourth quarter of 2009, according to new figures released today by data analysis firm TransUnion. 

Credit Card Advance an Alternative to HELOC?

Getting a home equity loan can be difficult these days. Is getting a cash advance on a credit card a reasonable and simpler alternative when you need money for a home improvement or other major expense?

Two-thirds of Delinquent Loans Predicted to Be Foreclosed

An estimated 5 million homes currently behind on their mortgages will be lost to foreclosure or related measures, according to a recent study by a leading real estate data and analysis firm.

Home Ownership Lowest in 10 Years

The U.S. home ownership rate fell to its lowest level in nearly 10 years in the last quarter of 2009, according to figures released by the Census Bureau.

Can You Still Get a Mortgage With Bad Credit?

Qualifying for a mortgage loan or refinance with bad credit is a lot harder than it used to be. Given that widespread defaults on subprime mortgages triggered the financial meltdown of 2008, lenders have become much more cautious about who they’ll extend credit to.

ARMs, 15-Year Loans Offer Big Savings

If you’re looking to refinance your mortgage or buy a home, it’s a great time to consider a 15-year fixed-rate or an ARM for your new loan.

Home Sales Pick Up in Fourth Quarter

Existing home sales rose nearly 14 percent in the final quarter of 2009, spurred by low interest rates and a federal tax credit for homebuyers.

Mortgage Rates Drop Back Below 5 Percent

Average interest rates on 30-year mortgages dropped back below 5 percent this week, despite looming concerns over significant increases in the near future.

Foreclosures Down 10 Percent in January

U.S. foreclosures fell 10 percent in January, following a sharp jump in December as lenders sought to wrap up actions by year’s end.

Steps for Getting a Loan Modification

If you’re having trouble meeting you mortgage payments due to reduced income or other financial problems, a loan modification may be your best bet for handling the situation and saving your home.

Bernanke Presents Fed Exit Strategy

Federal Reserve Chair Ben Bernanke has laid out his “exit plan” for winding down the Fed’s economic stimulus efforts, saying he expects the Fed to begin raising interest rates before long.

Big Decline in Mortgage Refinancing Predicted

Mortgage refinancing in 2010 is expected to total less than half that of 2009, according to newly released forecast by the market research firm iEmergent. 

Time to Consider a Cash-in Refinance?

Here’s something you may not have considered if you’re looking to refinance your mortgage – a cash-in refinance.

FTC Proposes Crackdown on Loan Modification Services

Seeking to protect homeowners from fraudulent mortgage modification schemes, the FTC has proposed a rule that would prohibit charging in advance for foreclosure prevention services. 

Window of Opportunity Closing for Home Buyers?

Is time running out to get a great deal on a home? To listen to some accounts, you would think so.

Mortgage Rates Remain Stable

Mortgage rates edged up slightly this past week, rising just above the 5 percent mark for 30-year loans, according to the weekly Freddie Mac market survey.

Don't Overlook the Merits of an ARM

Looking to get the best possible interest rate on a home mortgage or mortgage refinance? You might consider an adjustable rate mortgage (ARM). Although ARMs are somewhat out of favor these days, for many borrowers they can still be a sensible, and even the best, choice for their particular circumstances.

Home Prices Show First Annual Increase Since 2006

U.S. home prices have posted their first 12-month gain since late 2006, according to figures released today by real estate data company Clear Capital.

Using APR to Compare Mortgage Offers

Shopping for a mortgage can be complicated, with lots of different factors such as interest rates, fees, points and loan terms to take into account. Is there a simple way to compare offers from different lenders that cuts through the confusion and shows which is the best deal?

Nearly One-Third of Home Markets Still Overpriced

Nearly one-third of U.S. housing markets remain overvalued, despite nearly four years of falling prices that have seen U.S. homes lose nearly 30 percent of their value. 

Pros and Cons of Debt Consolidation

Are credit card interest rates eating you alive? Tired of juggling multiple debt payments each month? Thinking about just rolling everything into a single bill with a mortgage debt consolidation loan?

Home Sales Contracts Edge Back Up

Pending home sales edged back up in December, one month after taking a steep plunge that raised doubts about whether a recovery in the housing market can be sustained.

Fannie Mae Offers Incentives for Foreclosure Purchases

Fannie Mae is offering some new incentives to homebuyers in an effort to clear out its inventory of foreclosed homes.

Foreclosure, Short Sale May Not Free You From Mortgage Debt

As more homeowners fall behind on their house payments or find themselves “underwater” on their mortgages, many are choosing to simply give up the home through foreclosure or a short sale. Unfortunately, that doesn’t always free them from their financial burden.
 
More and more, homeowners who have lost their homes through foreclosure or given them up through a short sale are shocked to discover their lenders are still coming after them for the unpaid balance on the mortgage.

Treasury Streamlines HAMP Loan Modification Guidelines

The Treasury Department is simplifying and standardizing key documents needed to apply for loan modifications under the government’s Home Affordable Modification Program (HAMP), in hopes of speeding approvals for homeowners seeking mortgage relief.

Mortgage Rates Hold Steady

Mortgage rates remained relatively unchanged this past week, according to the weekly Freddie Mac market survey.

Record 2.8 Million Foreclosures Reported in 2009

A record 2.8 million U.S. properties went into foreclosure last year, a 21 percent increase over the year before and more than double the number recording in 2007, according to figures released today by the foreclosure tracking company RealtyTrac.

Get Preapproved Before You Start Home Shopping

Getting a mortgage can be difficult these days. So when shopping for a new home, it helps to be preapproved before you start your search or make an offer to a seller.

New Home Sales Drop for Second Month

New home sales fell to an annual rate of 342,000 in December, according to figures released today by the Commerce Department, exceeding the expectations of economists who had predicted a much smaller decline.

Bank of America Signs On to Second Lien Modification Program

Bank of America has announced that it will participate in a government program to modify second liens on home mortgages, becoming the first lender to agree to do so.

Should You Always Avoid Prepayment Penalties?

Prepayment penalties, also known as cancellation fees, are one of the classic pitfalls that await the unwary borrower. All too often, a homeowner selling or refinancing their home has been stunned to discover that they first have to pay a penalty of several thousand dollars to get out of their current mortgage.

Home Prices Show Mixed Picture

Seasonally adjusted U.S. home prices posted a small increase in November, despite signs of weakness in several areas that present a mixed picture of the overall housing market.

Rep. Frank Calls for Fannie, Freddie to be Eliminated

Fannie Mae and Freddie Mac, the giant lenders that support the majority of the U.S. mortgage market, should be abolished and replaced with a new system to back mortgage lending, according to U.S. Rep. Barney Frank, chair of the House Financial Services Committee.

Can a Cosigner Help You Qualify for a Mortgage?

If you’re looking to buy or refinance a home but are having trouble qualifying for the mortgage, you might consider getting a cosigner to help.

New iPhone Aps Simplify Home Shopping

House-hunting has become a lot easier and more convenient, thanks to some new iPhone applications that provide instant access to real estate listings and other information while touring neighborhoods of interest.

State Attorneys General Urge Mortgage Principal Markdowns

A task force of state attorneys general and banking regulators is calling for principal reductions on “underwater” mortgages in order to stem foreclosures in areas that have experienced steep declines in housing values.

Mortgage Rates Drop Back Below 5 Percent

Mortgage interest rates fell back below the 5 percent threshold this past week, despite predictions that sharp increases are on the way as the government winds down a program designed to support credit markets.

How Your FICO Credit Score Works

Everyone knows that you need a good credit score to qualify for a mortgage and get the best interest rates. But how are credit scores determined? What, if anything, can you do to improve a poor one?

Mortgage Rates Drop Back Below 5 Percent

Mortgage interest rates fell back below the 5 percent threshold this past week, despite predictions that sharp increases are on the way as the government winds down a program designed to support credit markets.

FHA Tightens Up Mortgage Lending Guidelines

Getting an FHA mortgage is about to get a bit more expensive and a bit more difficult.

Buy a New Home, Let the Current One Go to Foreclosure?

Suppose you’re way upside down on your mortgage. Can you buy another house at today’s discounted prices, then simply stop payments on the first one and let it go into foreclosure?

More Homeowners Approved for Permanent Loan Modifications

The number of permanent loan modifications finalized under the government’s Making Home Affordable Program more than doubled in December, following criticism that few homeowners were obtaining long-term mortgage relief under the program.
 
The Treasury Department reported that, as of the end of December, 66,465 had received permanent loan modifications under the program, up from 31,382 at the end of November.

FHA Mortgage Restriction Eased for Foreclosure Repurchases

To encourage the resale of foreclosed properties, the Department of Housing and Urban Development (HUD) is temporarily easing a restriction on the type of properties that can be bought with an FHA mortgage.

How Soon After a Foreclosure Can You Buy a Home?

If you give up your current home, how soon can you buy another one? With millions U.S. homeowners “underwater” on their mortgages or even facing foreclosure, it’s a question that many are pondering.

Reasons a Loan Modification Might Be Denied

What are some of the main reasons people are turned down for loan modifications? Aside from the obvious – like not enough income to maintain even a modified payment schedule – there are any number of less apparent reasons that can trip up someone who otherwise might be able to qualify and save their home from foreclosure.

Consumer Confidence Up Less Than Expected

Consumer confidence in the economy edged up slightly in early January, but not nearly as much as economists had expected.

Foreclosures Hit 2.8 Million Homes in 2009

More than 2.8 million U.S. properties, or one home in 45, were subject to foreclosure in 2009, according to a year-end report released this week by the foreclosure data firm RealtyTrac.

Mortgage Rates Ease for Second Week

Mortgage rates eased slightly for the second consecutive week, giving borrowers a respite after a December in which some interest rates by nearly half a percent.

What Kind of Interest Rate Can You Expect?

Thinking about taking out a mortgage, but not sure what kind of interest rate you can get? Wouldn’t it be nice if they just had a chart where you could see what you can expect to pay with a certain credit score, down payment and other factors?

Mortgage Rates Predicted to Hit 6 Percent in 2010

Mortgage interest rates will jump to around 6 percent in the coming months, but then stabilize for the rest of the year, according to a new economic forecast from the Mortgage Bankers Association (MBA).

Time Running Out on "Underwater" Refinance

Owe more on your mortgage than your home is worth? “Underwater” borrowers have an opportunity to refinance their mortgage, but you need to act soon before the program expires.

Federal Reserve Posts Record Surplus in 2009

The Federal Reserve’s interventions this past year did more than goose the economy and send mortgage interest rates to record lows – the generated a tidy profit for the government as well.

Minnesota AG Seeks Foreclosure Mediation Law

The Minnesota attorney general has said she and allies in the state legislature will try again this year to enact a foreclosure mediation law giving at-risk borrowers a chance to save their homes.

What’s Better? Cash-out refinance or home equity loan?

You don’t hear a lot about people taking out home equity loans these days. With all the millions of homeowners who got in financial trouble by using their homes as “ATM machines” to support their lifestyle and the recent massive declines in home values, home equity borrowing has both gotten a bad rap and become much more difficult to obtain.

Home Equity Delinquencies Hit Record High

Delinquencies on home equity loans hit a record high in the third quarter of the year, even while falling for most other types of consumer installment loans, according to new data from the American Bankers Association (ABA).

Mortgage Rates Fall Back Slightly

Mortgage rates fell back slightly the first week of the year after posting sharp increases throughout December, according to the latest weekly survey from Freddie Mac.

Mortgage Refinance Options

When refinancing a mortgage, many borrowers focus exclusively on getting a lower interest rate. But interest rates are only part of the picture – there are many other options to consider as well.

Las Vegas Home Prices Post First Increase in Three Years

Las Vegas has posted its first quarterly increase in housing prices in three years and Detroit led all U.S. metropolitan areas in housing price gains for the second consecutive month, as some of the nation’s most battered housing markets are showing signs of stability.

Mortgage Applications Drop

Mortgage applications fell sharply just before Christmas, as rising interest rates seem to have dampened consumer interest in mortgage refinancing.

Existing Home Purchases Drop Sharply

Pending home sales fell sharply in November, breaking a string of nine consecutive monthly increases, according to figures released today by the National Association of Realtors (NAR).

Keys to Getting Approved for a Loan Modification

Mortgage loan modifications have been big news lately. Unfortunately, that’s largely because of all the difficulties homeowners are having getting one. What can you do to improve your odds of being approved?

HUD Lifts Cap on FHA Mortgage Origination Fees

FHA mortgages could get a bit more expensive for borrowers, now that the government has lifted a cap on what lenders can charge for originating the loans.

Bernanke Says Lax Regulation to Blame for Housing Bubble

A lax economic policy was not the cause of the housing bubble and crash of the past decade, according to Federal Reserve Chair Ben Bernanke, who said stronger financial regulations and oversight are needed to prevent it from happening again.

Understanding the New Good Faith Estimate Form

As of Jan.1, 2010, lenders will be providing more straightforward information to potential borrowers and making it easier to understand the costs involved in obtaining a new mortgage.