Monday, April 23, 2007

30 yr Mortgage Rates fall for first time in 6 weeks

Rates on 30-year mortgages decreased for the first time in 6 weeks as investors saw evidence inflation is not getting out of hand.

Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.17 percent last week down from 6.22 percent two weeks ago and marked the first decline in the 30-year rate since it dropped in early March to 6.14 percent, the lowest level for this year.

Analysts attributed last week’s slight decline to the latest reports on inflation, which showed few price pressures outside of energy.

Other mortgage rates also fell last week. Rates on 15-year fixed-rate mortgages, dipped to 5.89 percent, down from 5.9 percent the week before.

Five-year ARMs averaged 5.92 percent, compared with 5.93 percent two weeks ago. One-year adjustable mortgages decreased to 5.45 percent from 5.47 percent two weeks ago.

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Tuesday, March 27, 2007

Mortgage Rates to Decline?

The average rate on a 30-year home mortgage loan with no upfront points was unchanged on
Monday at 6-1/4%
If the mortgage market on Tuesday continues in its current
direction, rates may decline.
The 30-year fixed mortgage rate with 1 upfront point was
unchanged at 6 percent.
The 30-year mortgage rate with two upfront points was
unchanged at 5-3/4 percent.

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Monday, March 19, 2007

More foreclosures expected as mortgage rates rise

About 1.1 million additional residential foreclosures are expected over the next six years as adjustable-rate mortgages reset to higher payments.

The expected $112 billion in Mortgage Loan losses won't break the mortgage industry but will inflict pain on both lenders and borrowers affected by the defaults.

Some mortgage loans made over the past few years were designed to allow initial periods of low payments. Many of those were "teaser" loans. A large chunk of the "teaser loans" are scheduled to reset to higher and longer term rates.

Many borrowers are likely to face the double-pressure of a large reset while at the same time, stagnant or fallen property values and little money down will leave many borrowers with little or no equity in their home.

The % of home mortgage loans resetting with negative equity is expected to leap from 12.9 percent in 2007 to 24.4 percent in 2008. That's when some of the most frequently used 2/28 mortgages, which called for two years of low payments and 28 years of higher payments, and 3/27 mortgages, which called for three years of low payments and 27 years of higher payments, are scheduled to reset.

Many mortgage lenders already are working with clients to modify terms or refinance existing loans to avoid default.

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Monday, February 26, 2007

Mortgage Rates Fall to lowest levels in 6 weeks

Rates on 30-year mortgages fell last week to the lowest level in six weeks.

30-year, fixed-rate mortgages averaged 6.22 percent last week compared with 6.3 percent the previous week.

The decline was only the second since early December.

It pushed rates to the lowest level since the 30-year mortgage was at 6.21 percent the week of Jan. 11.


Monday, February 12, 2007

Mortgage Rates

Residential Mortgage Rates on 30-year mortgages fell for the first time since early December as lower-than-expected job growth eased worries in financial markets about inflation.

Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.28 percent last week, down from 6.34 percent the previous week.

The small decline was the first drop in rates since Dec. 7 when 30-year mortgages had fallen to 6.11 percent, the lowest level since early 2006.

The decline last week came after a government report showed that the unemployment rated edged up to 4.6 percent in January when a fewer-than-expected 111,000 jobs were created.

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Thursday, January 25, 2007

Mortgage Rates Rise

Mortgage rates increased again this week with the avg 30yrv fixed rate rising to 6.32%.

The average 15yr fixed rate mortgage climbed to 6.07%.

The average jumbo 30yr fixed rate increased to 6.56%.

Adjustable mortgage rates moved higher as well, with the average 5/1 ARM moving up to 6.21% and the average one-year ARM increasing to 6.04%.

Mortgage rates increased again this week, despite the absence of any important release of economic data. Instead, all signs continue to point to the Fed staying on hold with interest rates for an indefinite period.

Tuesday, December 26, 2006

Mortgage Refinancing plunge

Refinance Mortgage applications slumped last week as interest rates climbed from recent lows.

The Mortgage Bankers Association said its index of mortgage application activity, which includes both Refifnace and new home purchase mortgage loans, for the week ended Dec. 15 decreased 10.2% to 647.6 from the previous week's 721.2, which was its highest level in more than a year.

Borrowing costs on 30-year fixed-rate mortgage loans averaged 6.10%, up from 6.02% the previous week.