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September 9, 2013

House Financing Requests Rise with Rates Up and Down

Category: Mortgage Rate News – admin – 11:04 am

As the housing market improves we have seen the demand rise again for home purchase loans. Yes interest rates have been rising but people need loans in order to buy properties across the U.S. Applications for U.S. home loans increased for the 1st time in the last month as mortgage interest rates dropped from their highest level this year.

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The Mortgage Bankers Association said its seasonally adjusted index of residential loan application activity, which includes both refinancing and home purchase demand, rose 1.3% in the week ended August 30th, after sliding 2.5% the prior week. The rise came as 30-year mortgage rates fell to 4.73% versus 4.80% the prior week, which was its highest this year, according to MBA data. Borrowing costs, however, have climbed by more than a percentage point since late May on the view that the Federal Reserve will soon reduce its monthly bond purchases, which have kept a ceiling on rates.

A sign that rising mortgage rates have taken some steam out of America’s housing market recovery was reflected in a separate report last week that showed contracts to purchase previously owned U.S. homes fell for the 2nd straight month in July. Economists largely expect the Fed to announce a pull back at its policy meeting later this month, though some say the central bank will think twice about higher long-term interest rates if there is evidence that they are making a significant impact on housing.  Read the original article now.

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May 6, 2013

Borrowers Migrating to 15 Year Home Loans with Record Low Rates

Category: Mortgage Rate News – admin – 10:58 am

Once again interest rates fell to record lows on Friday. The fixed 15-year mortgage rate dropped to 2.56%. Last year at this time, it averages 3.07%. The fixed 30-year mortgage rate fell to 3.35%.  For the most part, these rates are available to applicants with good credit scores. Some borrowers may qualify for a home loan with bad credit under the government programs if they have the ability to demonstrate significant compensating factors.

According to Frank Nothaft, Freddie Mac’s chief economist. “Residential fixed investment added to overall economic growth over the past eight consecutive quarters and contributed more than 0.3 percentage points in growth over the first three months of this year,” he said. “Near record low interest rates should further drive the housing market recovery over the near term.”

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October 26, 2012

MBA Forecasts a Rise for Rates on Home Mortgages in 2013

Category: Mortgage Rate News – admin – 4:03 pm

One of the Wall Street Journal’s blogs posted a great article that considers the direction of mortgage rates in the near future. It’s widely known that the Federal Reserve’s commitment to buy mortgage securities at a high volume will help to keep conforming and government mortgage rates at record levels.

Rates Will Remain Low but May Inch Up in 2013

Mike Fratantoni, the vice president of research and economics at the Mortgage Bankers Association believes that the fixed 30-year mortgage rates will stay between 3% and 4% through 2013. According to Fratantoni, “The Federal Reserve has committed to purchasing $40 billion of mortgage-backed securities per month until the labor market shifts beyond the recovery mode.” Based on MBA’s estimate of loan origination, the Fed will be buying 36% of all home loans originated in 2013, and a much higher percentage of those swapped into agency mortgage-backed securities.”

MBA’s chief economist, Jay Brinkman believes that we should expect a high volume of refinancing activity will more than likely continue throughout the coming year. This year the HARP and no cost mortgage refinancing programs have been the most requested type of loans.

Indeed, things are looking at least somewhat better for the industry. Mortgages to finance a home purchase are expected to rise by 16% in 2013, compared with 2012, as the economy grows modestly and more owner-occupied home sales occur, as opposed to cash purchases by investors, Brinkmann said. Also helpful to driving home purchases are the 1.5 to 1.8 million private-sector jobs expected to be created next year, though the growth is below what would be needed for a “robust” home-sales market, he said.

Single-family housing starts are expected to reach 586,000 in 2013, up from 527,000 in 2012, according to the forecast. The median existing-home price is expected to rise to $186,000 next year, from $179,400. While the improvement may be slow, it’s also worth pointing out that the country has added 4.8 million renter households since the end of 2006, while losing 1.7 million owner households, according to the MBA. Read the original Market Watch article discussing the trend of mortgage rates.

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January 13, 2012

Home Loan Application Volumes Rise

Category: Mortgage Rate News – admin – 5:58 pm

The Mortgage Bankers Association published their weekly report indicating that home loan applications rose from the previous week. MBA reported increases in refinancing and purchases mostly because interest rates remained at 60-year lows.  Overall activity increased 4.5% for the week ended Jan. 6, including an adjustment for the New Year’s Day holiday, the Mortgage Bankers Association reported on Wednesday. We also saw a surge in applications for house loans with bad credit as more an more consumers appear to be looking for a second chance.

The index got a boost from as mortgage refinancing applications rose 3.3%. According to the survey, applications for home loans rose over 8% from a week earlier. The four-week moving average is down just slightly, by 0.53%, while it decreased 1.92% for the purchase index and 0.09% for refinancing.

There have been very little fluctuations on rates for the fixed 30-year mortgage. The average contract interest rate for loans with conforming mortgage balances ($417,500 or less) rose to 4.11% from 4.07%.  The rate for 30-year fixed mortgages with jumbo loan balances (greater than $417,500) decreased to 4.34 % from 4.41%.

Today’s FHA rates on fixed 30-year mortgages that are government insured remained unchanged, at 3.96%, but the 15-year mortgage rate rose slightly to 3.40% from 3.37%.

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December 7, 2011

Home Loan Applications Surge 13%

Category: Mortgage Rate News – admin – 10:06 am

The Mortgage Bankers Association announced today that the number of home loan applications filed in the United States last week rose 13% from the prior week, as declining interest rates spurred the activity drawing new borrowers to apply for a refinance or home purchase loan.

Refinance loan activity climbed 15%, according to the MBA’s weekly survey, which covers more than three-quarters of all U.S. home loan applications. Purchase loan volumes rose by a seasonally adjusted 8.3% during the week ended Friday, reaching its highest level since August 5th.

Michael Fratantoni, the Vice President o the MBA said, “Coming out of the Thanksgiving holiday, applications increased significantly as home loan rates decreased to their lowest levels in the last few months.”

The four-week moving average for all home loan applications is still down 3.2% after two weeks of declines.  The share of applications completed for home mortgage refinancing surged to 76% of total applications, up from 73.9% the previous week.

For those tracking the 1/1, 3/1 and 5/1 ARMS: The home loans with variable interest rates drove 5.7% of the activity last week.

The average rate on fixed rate 30-year mortgage fell to 4.18% from 4.21%, while rates on similar mortgages with jumbo loan amounts decreased to 4.52% from 4.55%. The average FHA mortgage rate on a 30-year term fell to 3.98 % from 4%.

The average for 15-year fixed-rate mortgages fell to 3.53% from 3.58%, while the 5/1 ARM average increased to 3.01% from 2.98%.

Yahoo Answers: Find out when Yahoo believes is the best time to refinance for the lowest rate.

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May 12, 2011

Home Mortgage Rates Fall Dramatically

Category: Mortgage Rate News – admin – 12:05 pm

According to Freddie Mac, the average rate on a 30-year fixed mortgage fell to 4.63 % in the week ended today from 4.71%. That is the lowest since the week ended Dec. 9. The 15-year rate slipped to 3.82% from 3.89% a week ago, the Virginia based government finance company said. The Mortgage Bankers Association’s weekly report measuring home loan refinancing activity jumped 9% last week which was the most significant rise in two months. According to MBA, the volume for home purchase loan applications rose 6.7%.

Foreclosure listing firm RealtyTrac Inc, said fewer homeowners had their homes repossessed by banks in April than a year ago. But that’s because it’s taking mortgage lenders longer than expected to repossess house that are already in the foreclosure process because of bottle-neck of paperwork.

Home sales continue to see stagnant levels that have many economists predicting a second housing bubble looming. Most homebuilders reported a drop in new orders in the first three months of the year, an indication of future activity. Concerns on jobs and tighter lending standards have hindered potential home buyers. And the high number of foreclosures is forcing home prices down, leaving some would-be buyers concerned that prices have yet to bottom out.Read the original article > http://blog.mortgagerelatednews.com/index.php/2011/05/12/home-loan-rates-decrease-to-lowest-level-in-5-months/

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February 8, 2011

Home Loan Applications Increase Last Week

Category: Mortgage Rate News – admin – 12:32 am

Home loan applications rebounded last week from a two-year low nationally. With home loan rates following an upward trend, many mortgage executives are concerned that there will be a significant increase in loan applications online in 2011. The Mortgage Bankers Association’s index of mortgage applications rose 11% in the week ended January 28th after dropping 13% the prior period, figures from the Washington-based group showed today.

The housing sector may be hindered by an unemployment rate near a 26-year high, even as manufacturing and consumer spending strengthen. Rising home foreclosures and increasing borrowing costs may also depress the industry at the center of the last recession.

According to the Lead Planet, refinance leads increased 12% after falling 15% the prior week, the mortgage bankers’ group said. The purchase lead volume rose 9.5% following an 8.7% decrease dipping to the lowest level in 90 days.  The average rate on a fixed 30-year mortgage rose to 4.81% last week from 4.80% the prior week. The rate reached 4.21% in October, the lowest since the group’s records began in 1990.

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July 16, 2010

Home Purchase Loan Applications Fall

The number of home loan applications in the U.S. for home purchases fell to a 13 1/2-year low last week, the Mortgage Bankers Association reported Wednesday, in a further sign of the slump in home buying since a federal tax credit concluded at the end of April.  There have been fears for months that the incentive was stealing future sales and would result in a new leg down for the housing market once the support ended. New-home sales sunk to a record in May while pending total sales tumbled 30% from April.

Home loan applications for new homes were down 43% from the Independence Day week last year, said the MBA. The bad news comes even as home mortgage rates sink to new record lows.  Those rate declines have been giving some lift to applications for home refinancing, which hit a 14-month high two weeks ago. But even the MBA refinance mortgage report fell 2.9% last week from a week earlier as its gauge for purchases dropped 3.1%. The share of applications for refinancing was flat at 78.7%.

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June 15, 2010

Home Refinancing Appealing But Tough to Qualify for

Mortgage refinance rates have dropped almost two percentage points below their housing boom peak and they remain available at record lows.  Freddie Mac reported that mortgage rate average fell to the lowest point in 2010 4.72% plus 0.7 point for a fixed rate home loan on a thirty-year term.  Clearly this is a great time for a home refinance loan, if you can get approved.  Credit, Lack of Equity and Inability to Document Income are the 3 most common reasons that homeowners have not been able to refinance into these record low rates.  A few years ago if you had good credit, you could pretty much qualify for any mortgage, but things have changed dramatically.  Today even people who have 700+ credit scores are finding it difficult to qualify for a conventional or FHA mortgage and it is frustrating millions of borrowers who need to refinance.  To receive the best mortgage refinance rates, you need good credit scores and the ability to document your income.  Stated and no-income verification loans are no longer viable options for home refinance opportunities.   You also need enough home equity to meet the refinance guidelines.  Many California borrowers had sufficient equity a few years ago, but the housing crisis has taken its toll on property values statewide.

The Mortgage Bankers Association released a report recently that outlined borrower problems in its latest report on home refinancing activity, which declined 14% last week after consecutive weeks of increased refinance loan volumes.  The low interest rates and homebuyer tax credit have clearly made a positive impact on the mortgage refinance market in 2010.  However, “despite the record low mortgage rates, many homeowners remain underwater on their home loans.  This means that their mortgage is greater than their property value.  According to MBA’s vice president, Michael Fratantoni, many distressed borrowers have been late on their mortgage payment which significantly damaged their credit and taking them out of contention for mortgage refinancing this year.

Since the pool of qualified borrowers looking to refinance is shrinking many lenders are offering aggressive mortgage specials.  Many reputable mortgage lenders are offering a no point refinance and some are going further with the no cost mortgage that enables borrowers to refinance without coming out of pocket for any lending expenses.  The no cost home loans also help borrowers avoid raising their mortgage balance in an effort to finance the lender fees and closing costs.  According to mortgage marketing executive, Bryan Dornan, “Again qualifying for no cost refinancing is difficult because you need good credit, sufficient income that can be documented and enough equity in your home to qualify for the loan refinance program.”  Dornan continued, “It’s not a motivation factor.  The borrowers who need home refinancing most simply do not qualify under today’s tighter lending guidelines.”

To put it into perspective, interest rates dropped last week, yet refinancing volumes fell.  In most cases, mortgage refinance rates follow the yields of longer-term Treasuries whether they rise or fall.  In recent months it’s been down, as the European debt crisis has led to banks dropping interest rates even further.  The vice president of HSH Associates Keith Gumbinger, “We have not seen mortgage rates lower than this in upwards of 50 years.” Gumbinger believes that the rates will begin trending higher once we get some good news regarding the economy.

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June 7, 2010

Low Mortgage Rates Available

Category: Current Mortgage Rates,Mortgage Rate News – admin – 9:39 am

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.”

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May 20, 2010

Mortgage Refinance Rates Still Fall to Lowest Level in Years

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 mortgage 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.

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May 17, 2010

Lowest Mortgage Rates of 2010 Drive California Homeowners to Refinance

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.

Compare California mortgage rates

2009

2010
Orange County (Anaheim)

435.8

486.7

Los Angeles-Long Beach-

303.5

331.4

Riverside-San Bernardino-Ontario

172.5

180.5

Sacramento-Arden-Arcade

169.3

179.4

San Diego-Carlsbad-San Marcos

330.5

379.0

San Francisco-Oakland-Fremont

402.0

518.2

San Jose-Sunnyvale-Santa Clara

450.0

560.0

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