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.

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).

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.

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

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.

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

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 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.

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

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).

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 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 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: 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

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.

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?

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 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.

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.  

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. 

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

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.

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 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

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 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.

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.

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. 

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

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

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.

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 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.

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

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.

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

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.

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

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

Mortgage Rates Continue Volatility, June 11, 2010

Mortgage Rates Continue Volatility, June 11, 2010                      

 

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

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

 

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

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. 

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 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 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 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 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.

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.

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.

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 

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.

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. 

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.

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

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.