Home Loan Wholesale

Are you considering home refinancing?  Freddie Mac announced this week saw the lowest home loan rates since 1971.  The number of loan applicant applying for a mortgage loan dropped by 5.9% during the week ended June 18.  Mortgage refinancing activity fell 7.3% compared with the previous week, while purchase volume slipped 1.2%.

Comparing home refinance rates: A year ago, the average home loan rate was 5.22% and 10 years ago, people were refinancing at 8.15%. Today, the average 30-year mortgage rate is 4.675% and the average 10-year mortgage is now at 3.875%.  Lenders continue to extend low interest rates because to the instability in the market and the European debt crisis.  Read the original article > Compare Mortgage Refinance Rates

Last week, the average mortgage rates were published at 4.875% and this was the best mortgage rates we have seen 22 weeks. Just a year-ago the average for the thirty-year mortgage was at 5.29%.   Home refinancing applications continued to explode as homeowners rushed to lending companies in an effort to lock the lowest possible refinance rates.  Freddie Mac chief economist Frank Nothaft said “The economy grew at a slower rate than originally reported in the first three months of the year and this suggests inflation will remain stable in the near term.”  “As a result,” Nothaft said, “mortgage interest rates remained at record levels this week.”

Mortgage rates fell to 2010 lows  but did come under a small amount of upward pressure late in the day as the stock market rallied into the close.   As the prices of mortgage backed securities fell, many mortgage lenders saw pricing get worse, but the higher lending costs that were passed on to borrowers were not big.  Mortgage refinance rates continued to hold at the best levels of 2010. 

Reports from competitive mortgage professionals indicate mortgage lender rate sheets to be about the same as yesterday.  The 30 year conventional rate mortgage remains in the 4.75% to 5.00% range for well qualified consumers.  There are still FHA lenders offering 4.625% as par.  To secure a par interest rate on a conventional mortgage you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point home mortgage. 

If you are not planning on keeping your house for more than 5 years, you should consider a no cost mortgage.  In many cases, in a no cost refinance, you will be forced to accept a higher mortgage rate which pays the lender enough money that they can afford to pay the closing costs for you.  On a no cost mortgage, you are still paying the costs, just paying them in the form of higher interest charges.   We recommend anticipating that a no cost loan to offer a rate of around 5.375% for a 30 year fixed.

A thirty-year California mortgage loan with a fixed interest rate, including lending fees, averaged 4.96%, the lowest level since week ended March 12th. California rates were still higher the 4.76% last year and the all-time low of 4.6%.  The demand for refinancing in California rose but the home loan applications declined statewide as the federal home buyer tax credits expired.  The 100% VA loan remained the best bet for homeowners looking to buy a home with no money down.  However VA eligibility is required for the California VA loan.

On average, homes sold last month in the Southern California area were on the market for 122 days before their sales closed. That’s four days longer than in March.  Also this week, the National Association of Realtors reported.    Freddie Mac reported last week yesterday that California mortgage rates had fallen to their lowest rates of the year.  Thousands of borrowers rushed online to shop California mortgage loans after hearing the interest rates were so low for mortgage refinancing.

Freddie Mac announced today that the current mortgage interest rates are the lowest they have been in 2010. The Wall Street Journal reported that home builder stocks rallied in early trading follow a reported spike in mortgage loan applications last week as homeowners take advantage of some of the lowest home mortgage rates since March. 

The Mortgage Bankers Association’s seasonally adjusted index of home loan applications, which includes both purchase mortgage and refinance loans, rose 3.9% for the week ended May 7th. The four-week moving average of mortgage applications, which removes some of the volatility of weekly changes, was up 4.4%. Mortgage refinancing led the way; the MBA’s seasonally adjusted index of home refinance applications rose 14.8%. A 30-year fixed-rate mortgage, including lending fees, averaged 4.96%, the lowest level since week ended March 12th. Refinance rates were still higher the 4.76% last year and the all-time low of 4.6%.  The demand for mortgage loans for buying new homes dropped following the expiration of the heavily publicized federal home buyer tax credits.