Average long-term U.S. mortgage rates inched up this week as financial markets awaited the Federal Reserve's crucial decision next week on interest rates.
The subdued gains followed a sharp drop the previous week, as global markets continued to whipsaw amid economic disruption in China and uncertainty over the Fed's interest-rate policy.
Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage edged up to 3.90 percent from 3.89 percent a week earlier. The rate on 15-year fixed-rate mortgages rose to 3.10 percent from 3.09 percent.
Investors and economists are closely watching whether the Fed moves at its meeting next week to raise a key interest rate, as has been long anticipated. A rate hike by the Fed could bring higher rates for home loans. The Fed has kept its key short-term rate near zero since the financial crisis struck seven years ago.
Many observers had hoped for a clear signal from the government's report on U.S. employment in August, issued Friday, the final snapshot of the job market before the Fed's policy-making body meets. The report showed that unemployment fell to a seven-year low of 5.1 percent, but hiring slowed — a mixed bag of news.
The Labor Department report gave a view of an economy growing at a modest but steady pace.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was unchanged from last week at 0.6 point. The fee for a 15-year loan rose to 0.7 point from 0.6 point.
The average rate on five-year adjustable-rate mortgages fell to 2.91 percent from 2.93 percent; the fee rose to 0.5 point from 0.4 percent. The average rate on one-year ARMs rose to 2.63 percent from 2.62 percent; the fee held steady at 0.3 point.
read more: http://www.chicagotribune.com/business/ct-mortgage-rates-inch-higher-20150910-story.html
Showing posts with label mortgage rates. Show all posts
Showing posts with label mortgage rates. Show all posts
Friday, September 11, 2015
Friday, August 21, 2015
Fixed Mortgage Rates Dip, Could Fall Further
Average long-term U.S. mortgage rates edged lower this week, with the key 30-year loan rate remaining under 4 percent. The 10/1 Adjustable Rate Mortgages are available starting at 3.71% with an April of 3.585%.
Freddie Mac reported that the 30-year fixed-rate mortgage (FRM) averaged 3.93 percent with an average 0.6 point for the week ending August 20, 2015, down from last week when it averaged 3.94 percent.
15 year fixed rate mortgages start at 3.500% at the bank carrying an April of 3.811% today. 30 year jumbo loan interest rates at the bank are listed at 4.625% and April of 4.777%.
[How borrowers can help make the mortgage application process go smoother].
QuoteAttributed to Sean Becketti, chief economist, Freddie Mac.
The one-year ARM average was unchanged at 2.62 percent with an average 0.3 point.
The typical price on five-year adjustable-rate mortgages rose to 2.94% from 2.93%; the charge remained at zero. The 3 year ARM interest rates have been published at 2.250% today with an April of 3.261%.
Mortgage rates barely moved from last week, with rates once again coming in below 4%, the latest Freddie Mac Primary Mortgage Market Survey found. For 5/1 ARMs, the rate was 2.76 percent.
“Overall inflation grew an underwhelming 0.2 percent year-over-year in July, but core inflation remains steady at 1.8 percent keeping chances alive for a potential rate hike in September”.
The speed on 15-year fixed-rate mortgages eased this week to three.15% from three.17%. One-unit housing starts in July 2015 jumped to 782,000 units, up 12.8 percent from June and up 19 percent from a year ago. “Overall housing markets remain on track for the best year since 2007″.
read more: http://www.tjcnewspaper.com/fixed-mortgage-rates-dip-could-fall-further-16378/
Freddie Mac reported that the 30-year fixed-rate mortgage (FRM) averaged 3.93 percent with an average 0.6 point for the week ending August 20, 2015, down from last week when it averaged 3.94 percent.
15 year fixed rate mortgages start at 3.500% at the bank carrying an April of 3.811% today. 30 year jumbo loan interest rates at the bank are listed at 4.625% and April of 4.777%.
[How borrowers can help make the mortgage application process go smoother].
QuoteAttributed to Sean Becketti, chief economist, Freddie Mac.
The one-year ARM average was unchanged at 2.62 percent with an average 0.3 point.
The typical price on five-year adjustable-rate mortgages rose to 2.94% from 2.93%; the charge remained at zero. The 3 year ARM interest rates have been published at 2.250% today with an April of 3.261%.
Mortgage rates barely moved from last week, with rates once again coming in below 4%, the latest Freddie Mac Primary Mortgage Market Survey found. For 5/1 ARMs, the rate was 2.76 percent.
“Overall inflation grew an underwhelming 0.2 percent year-over-year in July, but core inflation remains steady at 1.8 percent keeping chances alive for a potential rate hike in September”.
The speed on 15-year fixed-rate mortgages eased this week to three.15% from three.17%. One-unit housing starts in July 2015 jumped to 782,000 units, up 12.8 percent from June and up 19 percent from a year ago. “Overall housing markets remain on track for the best year since 2007″.
read more: http://www.tjcnewspaper.com/fixed-mortgage-rates-dip-could-fall-further-16378/
Friday, August 7, 2015
Mortgage rates fall again amid economic uncertainty
Eight weeks ago, it appeared that the days of 30-year fixed rate mortgages at less than 4 percent were a thing of the past. But recent economic uncertainty has sent those rates tumbling, which is good news for those looking to purchase a home or refinance a loan.
According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average hovered below 4 percent for the second week in a row, falling to 3.91 percent with an average 0.6 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.98 percent a week ago and 4.14 percent a year ago.
The 15-year fixed-rate average slipped to 3.13 percent with an average 0.6 point. It was 3.17 percent a week ago and 3.27 percent a year ago.
Hybrid adjustable rate mortgages were mixed. The five-year ARM average held steady at 2.95 percent with an average 0.4 point, same as it was a week ago. It was 3.27 percent a year ago.
The one-year ARM average rose to 2.54 percent with an average 0.3 point. It was 2.52 percent a week ago.
“All eyes are on the upcoming July employment report, as the Fed has made it clear developments in the labor market will affect the timing of any potential rate hike,” Sean Becketti, Freddie Mac chief economist, said in a statement.
“But early signals indicate Friday’s employment report will not look so good. The employment cost index rose 0.2 percent in the second quarter, the lowest quarterly increase in its 33-year history and ADP’s Private Employment Report missed expectations for private jobs in July. Uncertainty about the economy helped drive down Treasury yields early in the week, and thus mortgage rates fell 7 basis points to 3.91 percent, the lowest level since June 4th.”
read more: http://www.washingtonpost.com/blogs/where-we-live/wp/2015/08/06/mortgage-rates-fall-again-amid-economic-uncertainty/
According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average hovered below 4 percent for the second week in a row, falling to 3.91 percent with an average 0.6 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.98 percent a week ago and 4.14 percent a year ago.
The 15-year fixed-rate average slipped to 3.13 percent with an average 0.6 point. It was 3.17 percent a week ago and 3.27 percent a year ago.
Hybrid adjustable rate mortgages were mixed. The five-year ARM average held steady at 2.95 percent with an average 0.4 point, same as it was a week ago. It was 3.27 percent a year ago.
The one-year ARM average rose to 2.54 percent with an average 0.3 point. It was 2.52 percent a week ago.
“All eyes are on the upcoming July employment report, as the Fed has made it clear developments in the labor market will affect the timing of any potential rate hike,” Sean Becketti, Freddie Mac chief economist, said in a statement.
“But early signals indicate Friday’s employment report will not look so good. The employment cost index rose 0.2 percent in the second quarter, the lowest quarterly increase in its 33-year history and ADP’s Private Employment Report missed expectations for private jobs in July. Uncertainty about the economy helped drive down Treasury yields early in the week, and thus mortgage rates fell 7 basis points to 3.91 percent, the lowest level since June 4th.”
read more: http://www.washingtonpost.com/blogs/where-we-live/wp/2015/08/06/mortgage-rates-fall-again-amid-economic-uncertainty/
Thursday, July 23, 2015
Interest-Only Mortgages Are Back ... Should We Be Afraid?
Even if you don’t know much about home loans, you’ve probably heard of interest-only mortgages, if only because they played a large role in the financial crisis of 2008 and 2009. These loans practically disappeared during the recession but have since started to make a comeback, but that’s not necessarily something to be concerned about. Interest-only mortgages are a risky product with a bad reputation, and the loans available now aren’t like the ones that made a mess of the economy several years ago.
What Is an Interest-Only Mortgage?
With a traditional 30-year fixed-rate mortgage, your monthly payments go toward both the principal balance and the interest accrued on the loan. An interest-only mortgage has a period — commonly 3, 5, 7 or 10 years — during which you’re only paying the interest accrued on that principal. If you take out a $100,000 loan and make payments on the interest accrued for 10 years, you’ll still have $100,000 to repay (plus interest) over the next 20 years of the loan. Instead of spreading that $100,000 over 30 years, you now have to pay it over 20, resulting in higher loan payments (the interest rate also resets at the end of that first period, meaning your interest rate could go up).
Loose underwriting standards allowed consumers with little to contribute to a down payment and less-than-great credit scores obtain interest-only mortgages before the financial crisis, said Scott Sheldon, a senior loan officer in Santa Rosa, Calif. “People tried to squeeze into a house they couldn’t afford, because they could only afford the interest-only payment,” he explained.
Historically, homeowners relied on the ability to refinance their homes at the end of the interest-only period said Tony Sachs, chief lending officer of online mortgage marketplace Sindeo. Home values tanked during the crisis, wiping out home equity and the option to refinance, so when borrowers’ payments increased, they couldn’t afford them and started defaulting on their loans.
Who Can Get an Interest-Only Mortgage?
Interest-only loans aren’t meant to be an affordability tool, Sheldon said. As the economy has improved, lenders started offering them again (within the past year or so), but they’re much different than those pre-2007 loans that everyone associates with the term “interest-only.”
“They’re usually geared toward higher-net-worth individuals who are interested primarily in cash flow and otherwise have a lot of assets,” Sheldon said. The interest-only loans he can originate now have stringent requirements: “We usually want 12 months of mortgage payments in the bank, in addition to the 740 credit score, in addition to the 25% down payment.”
see more: http://www.stltoday.com/business/credit/interest-only-mortgages-are-back-should-we-be-afraid/article_85ca0577-3312-524a-8671-360c2db039d5.html
What Is an Interest-Only Mortgage?
With a traditional 30-year fixed-rate mortgage, your monthly payments go toward both the principal balance and the interest accrued on the loan. An interest-only mortgage has a period — commonly 3, 5, 7 or 10 years — during which you’re only paying the interest accrued on that principal. If you take out a $100,000 loan and make payments on the interest accrued for 10 years, you’ll still have $100,000 to repay (plus interest) over the next 20 years of the loan. Instead of spreading that $100,000 over 30 years, you now have to pay it over 20, resulting in higher loan payments (the interest rate also resets at the end of that first period, meaning your interest rate could go up).
Loose underwriting standards allowed consumers with little to contribute to a down payment and less-than-great credit scores obtain interest-only mortgages before the financial crisis, said Scott Sheldon, a senior loan officer in Santa Rosa, Calif. “People tried to squeeze into a house they couldn’t afford, because they could only afford the interest-only payment,” he explained.
Historically, homeowners relied on the ability to refinance their homes at the end of the interest-only period said Tony Sachs, chief lending officer of online mortgage marketplace Sindeo. Home values tanked during the crisis, wiping out home equity and the option to refinance, so when borrowers’ payments increased, they couldn’t afford them and started defaulting on their loans.
Who Can Get an Interest-Only Mortgage?
Interest-only loans aren’t meant to be an affordability tool, Sheldon said. As the economy has improved, lenders started offering them again (within the past year or so), but they’re much different than those pre-2007 loans that everyone associates with the term “interest-only.”
“They’re usually geared toward higher-net-worth individuals who are interested primarily in cash flow and otherwise have a lot of assets,” Sheldon said. The interest-only loans he can originate now have stringent requirements: “We usually want 12 months of mortgage payments in the bank, in addition to the 740 credit score, in addition to the 25% down payment.”
see more: http://www.stltoday.com/business/credit/interest-only-mortgages-are-back-should-we-be-afraid/article_85ca0577-3312-524a-8671-360c2db039d5.html
Monday, July 13, 2015
Mortgage rates dip amid world economic concerns
With all the chaos in the world these days – Greece, China, Puerto Rico, not to mention falling oil prices – investors have sought safety in bonds, driving yields down. That usually pushes mortgage rates lower. Although home loan rates dipped this week, they didn’t slide very far, according to the latest data released Thursday by Freddie Mac.
2300-Armschart0711
The 30-year fixed-rate average slipped to 4.04 percent with an average 0.6 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.08 percent a week ago and 4.15 percent a year ago. The 30-year fixed rate has stayed above 4 percent for the past five weeks.
The 15-year fixed-rate average edged down to 3.2 percent with an average 0.5 point. It was 3.24 percent a week ago and a year ago.
Hybrid adjustable rate mortgages also fell. The five-year ARM average dropped to 2.93 percent with an average 0.4 point. It was 2.99 percent a week ago and a year ago.
The one-year ARM average dipped to 2.5 percent with an average 0.3 point. It was 2.52 percent a week ago.
“Yields on Treasury securities declined this week in response to investor concerns about events in Greece and China. Mortgage rates fell as well, although not by as much as government bond yields,” Sean Becketti, Freddie Mac chief economist, said in a statement.
“Overseas volatility is likely to persist for some time, providing some restraint on potential U.S. rate increases. In addition, the minutes of the June meeting of the Federal Open Market Committee suggest the Federal Reserve will proceed cautiously — monitoring events both overseas and in the United States to ascertain the appropriate moment to begin raising short-term interest rates. As a result, mortgage rates may remain in the neighborhood of 4 percent for a while.”
read more: http://www.washingtonpost.com/blogs/where-we-live/wp/2015/07/09/mortgage-rates-dip-amid-world-economic-concerns/
2300-Armschart0711
The 30-year fixed-rate average slipped to 4.04 percent with an average 0.6 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.08 percent a week ago and 4.15 percent a year ago. The 30-year fixed rate has stayed above 4 percent for the past five weeks.
The 15-year fixed-rate average edged down to 3.2 percent with an average 0.5 point. It was 3.24 percent a week ago and a year ago.
Hybrid adjustable rate mortgages also fell. The five-year ARM average dropped to 2.93 percent with an average 0.4 point. It was 2.99 percent a week ago and a year ago.
The one-year ARM average dipped to 2.5 percent with an average 0.3 point. It was 2.52 percent a week ago.
“Yields on Treasury securities declined this week in response to investor concerns about events in Greece and China. Mortgage rates fell as well, although not by as much as government bond yields,” Sean Becketti, Freddie Mac chief economist, said in a statement.
“Overseas volatility is likely to persist for some time, providing some restraint on potential U.S. rate increases. In addition, the minutes of the June meeting of the Federal Open Market Committee suggest the Federal Reserve will proceed cautiously — monitoring events both overseas and in the United States to ascertain the appropriate moment to begin raising short-term interest rates. As a result, mortgage rates may remain in the neighborhood of 4 percent for a while.”
read more: http://www.washingtonpost.com/blogs/where-we-live/wp/2015/07/09/mortgage-rates-dip-amid-world-economic-concerns/
Wednesday, July 8, 2015
Mortgage Loan Rates Dip, but Remain Volatile
The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning, noting a week-over-week increase of 4.6% in the group’s seasonally adjusted composite index for the week ending July 3. That followed a decrease of 4.7% for the week ending June 26. The weekly results included an adjustment for the Independence Day holiday. Mortgage loan rates decreased on all five loan types.
On an unadjusted basis, the composite index decreased by 6% week over week. The seasonally adjusted purchase index rose by 7% compared to the week ended June 26. The unadjusted purchase index dropped by 4% for the week and remains 32% higher year over year.
The MBA’s refinance index increased by 3% week over week, and the percentage of all new applications that were seeking refinancing slipped from 48.9% to 48.0%, its lowest level since June of 2009.
Mortgage Daily News reported Tuesday that a majority of lenders were quoting conventional 30-year fixed mortgage loan rates of 4% for their top-tier borrowers earlier in the day, but after European markets closed Tuesday those rates disappeared and the prevailing rate moved back to 4.125% for top-tier borrowers. The report goes on to say:
This type of intraday movement is par the course recently, and it’s not going away any time soon. Whether it’s driven by domestic events such as [Wednesday]’s release of the Minutes from that last Fed meeting, or by several days of negotiations over a new Greek bailout that follow, volatility is the only safe bet. For the past three business days, that volatility has generally left mortgage rates in better shape, but until we see a more stable change in market behavior, it’s safer to treat such days as “lock opportunities” as opposed to promises of further improvement. [Emphasis in original.]
Read more: http://247wallst.com/housing/2015/07/08/mortgage-loan-rates-dip-but-remain-volatile/
Friday, June 26, 2015
Home Sales on Fire as Mortgage Rates Simmer
First-time homebuyers dove into the market at their highest rate in nearly three years as mortgage rates remained largely unchanged, according to Freddie Mac’s weekly mortgage market survey.
30-year fixed-rate mortgages held steady at 4.02% with an average 0.7 points for the week ending June 25, 2015. A year ago, the rate averaged 4.14%.
15-year fixed rates dipped slightly to 3.21% with an average 0.6 points. The same term priced at 3.22% a year ago.
5-year adjustable-rate mortgages were 2.98% with an average 0.4 points. Last year at this time, an identical ARM averaged the same 2.98%
“Mortgage rates were little changed this week,” said Sean Becketti, chief economist for Freddie Mac, in a news release. “Buyers appear anxious to purchase homes before the expected increase in interest rates later this year. Given the tight inventory of homes for sale, a 5.1-month supply at the current sales pace, home prices are being bid up.”
National housing market continues rebound
Across the nation, the housing market is continuing to solidify, according to Freddie Mac’s market analysis. The mortgage finance company’s Multi-Indicator Market Index, a measure of stability in the housing market in all 50 states, is up 33% from its all-time low in October 2010 — although it’s still in a range that indicates a “weak” market overall.
More than half of the U.S. is in a stable market range, with the states seeing the most improvement month-over-month including Washington, Indiana, Tennessee, Oregon and Mississippi.
“We saw a significant improvement in housing markets nationwide, with 10 more metro areas and nine more states moving within range of their benchmark, stable level of housing activity,” said Len Kiefer, deputy chief economist for Freddie Mac. “The West and Southwest areas of the country continue to lead the way, especially Colorado, Oregon and Utah, and California is right there as well. Unlike a year ago, when the most improving markets were those hardest hit by the Great Recession, we’re now seeing stable markets among the most improving as well.”
Applications and home sales heat up
Home purchases and refinancings are trending up, according to the latest survey by the Mortgage Bankers Association. Mortgage applications were up 1.6% from a week earlier, while refinancings gained 2%, for the week ending June 19.
In another sign of heat in the housing market, new single-family home sales rose 2.2% in May, the fastest pace since February 2008. Tom Woods, chairman of the National Association of Home Builders, says rising builder confidence is tempered only by the challenge of meeting growing demand.
“Our builders are seeing motivated buyers and the release of pent-up housing demand,” Woods said in an NAHB news release. “However, builders are facing supply chain challenges, which is affecting the inventory of new homes.”
Meanwhile, existing home sales, as measured by the National Association of Realtors, increased in May to their highest level since November 2009.
read more: https://www.nerdwallet.com/blog/mortgages/home-sales-fire-mortgage-rates-simmer/
30-year fixed-rate mortgages held steady at 4.02% with an average 0.7 points for the week ending June 25, 2015. A year ago, the rate averaged 4.14%.
15-year fixed rates dipped slightly to 3.21% with an average 0.6 points. The same term priced at 3.22% a year ago.
5-year adjustable-rate mortgages were 2.98% with an average 0.4 points. Last year at this time, an identical ARM averaged the same 2.98%
“Mortgage rates were little changed this week,” said Sean Becketti, chief economist for Freddie Mac, in a news release. “Buyers appear anxious to purchase homes before the expected increase in interest rates later this year. Given the tight inventory of homes for sale, a 5.1-month supply at the current sales pace, home prices are being bid up.”
National housing market continues rebound
Across the nation, the housing market is continuing to solidify, according to Freddie Mac’s market analysis. The mortgage finance company’s Multi-Indicator Market Index, a measure of stability in the housing market in all 50 states, is up 33% from its all-time low in October 2010 — although it’s still in a range that indicates a “weak” market overall.
More than half of the U.S. is in a stable market range, with the states seeing the most improvement month-over-month including Washington, Indiana, Tennessee, Oregon and Mississippi.
“We saw a significant improvement in housing markets nationwide, with 10 more metro areas and nine more states moving within range of their benchmark, stable level of housing activity,” said Len Kiefer, deputy chief economist for Freddie Mac. “The West and Southwest areas of the country continue to lead the way, especially Colorado, Oregon and Utah, and California is right there as well. Unlike a year ago, when the most improving markets were those hardest hit by the Great Recession, we’re now seeing stable markets among the most improving as well.”
Applications and home sales heat up
Home purchases and refinancings are trending up, according to the latest survey by the Mortgage Bankers Association. Mortgage applications were up 1.6% from a week earlier, while refinancings gained 2%, for the week ending June 19.
In another sign of heat in the housing market, new single-family home sales rose 2.2% in May, the fastest pace since February 2008. Tom Woods, chairman of the National Association of Home Builders, says rising builder confidence is tempered only by the challenge of meeting growing demand.
“Our builders are seeing motivated buyers and the release of pent-up housing demand,” Woods said in an NAHB news release. “However, builders are facing supply chain challenges, which is affecting the inventory of new homes.”
Meanwhile, existing home sales, as measured by the National Association of Realtors, increased in May to their highest level since November 2009.
read more: https://www.nerdwallet.com/blog/mortgages/home-sales-fire-mortgage-rates-simmer/
Friday, May 8, 2015
Mortgages rates jump, Freddie Mac survey says
Mortgage rates climbed higher in the past week, with the average rate for the benchmark 30-year fixed-rate mortgage rising to 3.80% from 3.68% in the prior week, according to the latest Freddie Mac survey.
The 15-year fixed rate averaged 3.02%, up from 2.94% a week ago.
The rates rose to their highest levels since March, as a selloff in German bunds helped drive U.S. Treasury yields above 2.2%.
A year ago, the respective 30-year and 15-year rates averaged 4.21% and 3.32%.
source: http://seekingalpha.com/news/2501436-mortgages-rates-jump-freddie-mac-survey-says
Wednesday, April 8, 2015
Low mortgage rates could ensnare some Montrealers
“For Sale” signs are popping up around Quebec as the prime listing season for residential real estate gets under way.
For many people, that means taking on a mortgage at a time when households are carrying record levels of debt.
Household indebtedness in Canada has reached an all-time high of 163.3 per cent of after-tax income, with about two-thirds of that borrowing in the form of mortgage loans.
Rock-bottom interest rates are pushing many buyers into the market and helping to make home purchases more affordable than they’ve been in a decade.
With more potential buyers out there, lending institutions are competing fiercely for business, advertising a wide variety of deals such as introductory rate specials, cash-back offers and “employee pricing.” The presence of online lenders like First National Financial has added a new element of competition.
But there’s a downside to the story. Analysts warn that mortgage debt could be the next flashpoint for a recession in Canada, leaving consumers dangerously exposed to a downturn in the economy or to a rise in interest rates. Bank of Canada governor Steven Poloz calls it the single biggest risk to the economy.
Low rates have helped push up housing prices, potentially setting up consumers for a fall.
The Bank of Canada estimates that residential real estate is overvalued by anywhere between 10 and 30 per cent, depending on the local market. The International Monetary Fund chimed in with a recent call for the government to rein in the financial sector and spread mortgage risk more widely by reducing federal insurance coverage, thereby forcing private lenders to shoulder more of the risk.
It’s not all bad news. Canadians owe more but they’re also worth more. To the extent that house prices remain firm and there’s no crash landing, home prices have helped improve household balance sheets.
see more: http://montrealgazette.com/news/local-news/are-low-mortgage-rates-setting-us-up-for-a-fall?__lsa=1e28-257f
For many people, that means taking on a mortgage at a time when households are carrying record levels of debt.
Household indebtedness in Canada has reached an all-time high of 163.3 per cent of after-tax income, with about two-thirds of that borrowing in the form of mortgage loans.
Rock-bottom interest rates are pushing many buyers into the market and helping to make home purchases more affordable than they’ve been in a decade.
With more potential buyers out there, lending institutions are competing fiercely for business, advertising a wide variety of deals such as introductory rate specials, cash-back offers and “employee pricing.” The presence of online lenders like First National Financial has added a new element of competition.
But there’s a downside to the story. Analysts warn that mortgage debt could be the next flashpoint for a recession in Canada, leaving consumers dangerously exposed to a downturn in the economy or to a rise in interest rates. Bank of Canada governor Steven Poloz calls it the single biggest risk to the economy.
Low rates have helped push up housing prices, potentially setting up consumers for a fall.
The Bank of Canada estimates that residential real estate is overvalued by anywhere between 10 and 30 per cent, depending on the local market. The International Monetary Fund chimed in with a recent call for the government to rein in the financial sector and spread mortgage risk more widely by reducing federal insurance coverage, thereby forcing private lenders to shoulder more of the risk.
It’s not all bad news. Canadians owe more but they’re also worth more. To the extent that house prices remain firm and there’s no crash landing, home prices have helped improve household balance sheets.
see more: http://montrealgazette.com/news/local-news/are-low-mortgage-rates-setting-us-up-for-a-fall?__lsa=1e28-257f
Thursday, April 2, 2015
Mortgage rates nudge slightly higher
Mortgage rates barely increased this week. That did not dissuade borrowers from filling out purchase and refinance applications. The uptick may not last, though. Recent economic data may persuade the Federal Reserve to hold off on rate increases even longer.
"There is no fear of the Fed right now. There is no real worry that rates should be rising in any meaningful way," says Joel Naroff, president of Naroff Economic Advisors. "But if, on Friday, we get better-than-expected job growth and more importantly, a rebound in wage gains, that will put everyone on notice."
Borrowers at the door
The slight increase in mortgage rates this week comes as more borrowers shop for mortgages in hopes of buying homes or refinancing their current loans. The volume of mortgage applications last week rose 4.6 percent from the previous week, according to the Mortgage Bankers Association. Purchase applications were up 6 percent, and refinances grew 4 percent. That was the second straight week of big increases.
"We have been so busy and I expect it to get busier with the warmer weather as we head into April," says John Stearns, a senior mortgage banker with American Fidelity Mortgage in Wisconsin.
Mortgage rates this week
2015%30-year fixedJanFebMar3.703.803.904.00
30 year fixed rate mortgage -- 3 month trend
The benchmark 30-year fixed-rate mortgage rose to 3.82 percent from 3.8 percent last week, according to the Bankrate.com national survey of large lenders. One year ago, that rate was 4.54 percent. Four weeks ago, it was 3.93 percent. The mortgages in this week's survey had an average total of 0.27 discount and origination points. Over the past 52 weeks, the 30-year fixed has averaged 4.14 percent. This week's rate is 0.32 percentage points lower than that 52-week average.
The benchmark 15-year fixed-rate mortgage rose to 3.06 percent from 3.04 percent.
The benchmark 5/1 adjustable-rate mortgage fell to 3.1 percent from 3.14 percent.
The benchmark 30-year fixed-rate jumbo rose to 3.93 percent from 3.92 percent.
Read more: http://www.bankrate.com/finance/mortgages/mortgage-analysis-040215.aspx
"There is no fear of the Fed right now. There is no real worry that rates should be rising in any meaningful way," says Joel Naroff, president of Naroff Economic Advisors. "But if, on Friday, we get better-than-expected job growth and more importantly, a rebound in wage gains, that will put everyone on notice."
Borrowers at the door
The slight increase in mortgage rates this week comes as more borrowers shop for mortgages in hopes of buying homes or refinancing their current loans. The volume of mortgage applications last week rose 4.6 percent from the previous week, according to the Mortgage Bankers Association. Purchase applications were up 6 percent, and refinances grew 4 percent. That was the second straight week of big increases.
"We have been so busy and I expect it to get busier with the warmer weather as we head into April," says John Stearns, a senior mortgage banker with American Fidelity Mortgage in Wisconsin.
Mortgage rates this week
2015%30-year fixedJanFebMar3.703.803.904.00
30 year fixed rate mortgage -- 3 month trend
The benchmark 30-year fixed-rate mortgage rose to 3.82 percent from 3.8 percent last week, according to the Bankrate.com national survey of large lenders. One year ago, that rate was 4.54 percent. Four weeks ago, it was 3.93 percent. The mortgages in this week's survey had an average total of 0.27 discount and origination points. Over the past 52 weeks, the 30-year fixed has averaged 4.14 percent. This week's rate is 0.32 percentage points lower than that 52-week average.
The benchmark 15-year fixed-rate mortgage rose to 3.06 percent from 3.04 percent.
The benchmark 5/1 adjustable-rate mortgage fell to 3.1 percent from 3.14 percent.
The benchmark 30-year fixed-rate jumbo rose to 3.93 percent from 3.92 percent.
Read more: http://www.bankrate.com/finance/mortgages/mortgage-analysis-040215.aspx
Thursday, March 19, 2015
Mortgage rates falling; 30-year drops to 3.78%, Freddie Mac says
Long-term interest rates declined this week, with Freddie Mac saying lenders were offering conventional 30-year mortgages at an average of 3.78%, down from 3.86% a week ago.
The average for 15-year fixed home loans slipped from 3.1% to 3.06%, Freddie Mac said in its weekly report, released Thursday. The initial rate on loans fixed for five years before becoming variable fell from 3.01% to 2.97%.
Lower rates are good news for the low-risk borrowers Freddie focuses on as spring usually brings a season of increased home sales. A year ago at this time, Freddie put the average rate for a 30-year fixed home loan at 4.32%.
The question in Southern California will be whether that helps touch off more home sales, which have dropped compared to a year ago while prices have leveled off for the past nine months.
Nationally, signals have been mixed, with housing starts below market expectations but housing permits up 3% in February, Freddie Mac’s deputy chief economist, Len Kiefer, said as the report was released.
The yield on the 10-year Treasury bond, generally a proxy for fixed mortgage rates, closed below 2% on Wednesday for the first time since Feb. 25.
The decline was in reaction to remarks by Federal Reserve Chairman Janet Yellen, who said the Fed is in no rush to raise interest rates for the first time since 2006, even though a change in its policy language opened the door for this to happen eventually.
Freddie Mac asks lenders early each week about the terms they are offering to solid borrowers seeking mortgages of up to $417,000 that conform to the guidelines of Freddie Mac and Fannie Mae, the nation's major mortgage-financing companies.
The borrowers would have paid a little more than half of 1% of the loan balance in upfront lender fees and discount points to obtain the rates. Payments for such services as appraisals and title insurance are not included.
The survey provides a consistent gauge of mortgage trends, but actual rates adjust constantly and are influenced by many factors.
read more: http://www.latimes.com/business/la-fi-re-freddie-mac-mortgage-rates-20150319-story.html
The average for 15-year fixed home loans slipped from 3.1% to 3.06%, Freddie Mac said in its weekly report, released Thursday. The initial rate on loans fixed for five years before becoming variable fell from 3.01% to 2.97%.
Lower rates are good news for the low-risk borrowers Freddie focuses on as spring usually brings a season of increased home sales. A year ago at this time, Freddie put the average rate for a 30-year fixed home loan at 4.32%.
The question in Southern California will be whether that helps touch off more home sales, which have dropped compared to a year ago while prices have leveled off for the past nine months.
Nationally, signals have been mixed, with housing starts below market expectations but housing permits up 3% in February, Freddie Mac’s deputy chief economist, Len Kiefer, said as the report was released.
The yield on the 10-year Treasury bond, generally a proxy for fixed mortgage rates, closed below 2% on Wednesday for the first time since Feb. 25.
The decline was in reaction to remarks by Federal Reserve Chairman Janet Yellen, who said the Fed is in no rush to raise interest rates for the first time since 2006, even though a change in its policy language opened the door for this to happen eventually.
Freddie Mac asks lenders early each week about the terms they are offering to solid borrowers seeking mortgages of up to $417,000 that conform to the guidelines of Freddie Mac and Fannie Mae, the nation's major mortgage-financing companies.
The borrowers would have paid a little more than half of 1% of the loan balance in upfront lender fees and discount points to obtain the rates. Payments for such services as appraisals and title insurance are not included.
The survey provides a consistent gauge of mortgage trends, but actual rates adjust constantly and are influenced by many factors.
read more: http://www.latimes.com/business/la-fi-re-freddie-mac-mortgage-rates-20150319-story.html
Sunday, March 1, 2015
Freddie Mac: Mortgage rates increase three weeks straight
Although mortgage rates grew for the third consecutive week, they still remain near lows experienced in late May 2013, the latest Freddie Mac Primary Mortgage Rate Survey found.
The 30-year, fixed-rate mortgage averaged 3.80% for the week ended Feb. 26, up from last week’s 3.76%. A year ago, it averaged 4.37%.
The 15-year, fixed-rate mortgage increased to 3.07%, compared to 3.05% a week ago. In 2014, it came in at 3.39%.
Meanwhile, the 5-year Treasury-indexed hybrid adjustable-rate mortgage grew from 2.97% last week to 2.99%. A year ago, the 5-year ARM averaged 3.05%.
The 1-year Treasury-indexed ARM averaged 2.44%, down from 2.45% last week, and 2.52% a year ago.
“Mortgage rates rose for the third consecutive week in February following solid housing data. New home sales beat market expectations at an annual pace of 481,000 units, down slightly from 482,000 units in December, but up 5.3% from a year ago. Also, the S&P/Case-Shiller National House Price Index rose 4.6% over the 12-months ending in December 2014,” said Len Kiefer, deputy chief economist with Freddie Mac.
On the other hand, Bankrate reported mortgage rates dropping after last week's increase, with the benchmark 30-year fixed mortgage rate pulling back to 3.90%.
The 15-year fixed dropped to 3.15%, down from 3.21% last week, while the 5/1 ARM dipped to 3.22%, down from 3.31% last week.
read more: http://www.housingwire.com/articles/33077-freddie-mac-mortgage-rates-increase-three-weeks-straight
The 30-year, fixed-rate mortgage averaged 3.80% for the week ended Feb. 26, up from last week’s 3.76%. A year ago, it averaged 4.37%.
The 15-year, fixed-rate mortgage increased to 3.07%, compared to 3.05% a week ago. In 2014, it came in at 3.39%.
Meanwhile, the 5-year Treasury-indexed hybrid adjustable-rate mortgage grew from 2.97% last week to 2.99%. A year ago, the 5-year ARM averaged 3.05%.
The 1-year Treasury-indexed ARM averaged 2.44%, down from 2.45% last week, and 2.52% a year ago.
“Mortgage rates rose for the third consecutive week in February following solid housing data. New home sales beat market expectations at an annual pace of 481,000 units, down slightly from 482,000 units in December, but up 5.3% from a year ago. Also, the S&P/Case-Shiller National House Price Index rose 4.6% over the 12-months ending in December 2014,” said Len Kiefer, deputy chief economist with Freddie Mac.
On the other hand, Bankrate reported mortgage rates dropping after last week's increase, with the benchmark 30-year fixed mortgage rate pulling back to 3.90%.
The 15-year fixed dropped to 3.15%, down from 3.21% last week, while the 5/1 ARM dipped to 3.22%, down from 3.31% last week.
read more: http://www.housingwire.com/articles/33077-freddie-mac-mortgage-rates-increase-three-weeks-straight
Thursday, February 26, 2015
Yellen, Greece push mortgage rates down
Mortgage rates eased this week as the Fed signaled to investors that it is not ready to raise interest rates just yet.
- The benchmark 30-year fixed-rate mortgage fell to 3.9 from 3.96 percent last week, according to the Bankrate.com national survey of large lenders. One year ago, that rate was 4.48 percent. Four weeks ago, it was 3.8 percent. The mortgages in this week's survey had an average total of 0.3 discount and origination points. Over the past 52 weeks, the 30-year fixed has averaged 4.2 percent. This week's rate is 0.3 percentage points lower than that 52-week average.
- The benchmark 15-year fixed-rate mortgage fell to 3.15 percent from 3.21 percent.
- The benchmark 5/1 adjustable-rate mortgage fell to 3.22 percent from 3.31 percent.
- The benchmark 30-year fixed-rate jumbo fell to 4.07 percent from 4.11 percent.
Thursday, February 19, 2015
Bankrate: Mortgage Rates Continue to Rise
To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.
The average 15-year fixed mortgage increased to 3.21 percent while the larger jumbo 30-year fixed mortgage hit a 2-month high of 4.11 percent. Adjustable rate mortgages were mixed, with the 5-year ARM dipping slightly to 3.31 percent and the 7-year ARM inching up to 3.52 percent.
Mortgage rates climbed again as U.S. economic performance has been convincing enough to increase the odds of a June interest rate hike by the Federal Reserve. Mortgage rates had fallen as the year got under way on concerns over international growth. Those concerns haven't gone away, and in fact have increased with Ukraine and Greece now drawing attention. However, these international concerns are being overshadowed by the increased likelihood of a mid-year Fed interest rate hike. Mortgage rates are closely related to yields on long-term government bonds.
One year ago, the average 30-year fixed mortgage rate was 4.48 percent. At that time, a $200,000 loan would have carried a monthly payment of $1,011.00. With the average rate now at 3.96 percent, the monthly payment for the same size loan would be $950.22, a savings of $61 per month for anyone refinancing now.
SURVEY RESULTS
30-year fixed: 3.96% -- up from 3.90% last week (avg. points: 0.30)
15-year fixed: 3.21% -- up from 3.17% last week (avg. points: 0.19)
5/1 ARM: 3.31% -- down from 3.32% last week (avg. points: 0.21)
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.
For a full analysis of this week's move in mortgage rates, go to http://www.bankrate.com/mortgagerates.
The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. Just under half of the panelists, 46 percent, expect mortgage rates to continue to climb. Thirty –one percent forecast that mortgage rates will remain more or less unchanged, while the remaining 23 percent predict that mortgage rates will pull back over the next week.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/news/rate-trends/mortgage.aspx.
About Bankrate, Inc.
Bankrate is a leading publisher, aggregator, and distributor of personal finance content on the Internet. Bankrate provides consumers with proprietary, fully researched, comprehensive, independent and objective personal finance editorial content across multiple vertical categories including mortgages, deposits, insurance, credit cards, and other categories, such as retirement, automobile loans, and taxes. The Bankrate network includes Bankrate.com, CreditCards.com, InsuranceQuotes.com and Caring.com, our flagship websites, and other owned and operated personal finance websites, including Interest.com, Bankaholic.com, Mortgage-calc.com, CreditCardGuide.com, CarInsuranceQuotes.com, Insweb.com, CreditCards.ca, and NetQuote.com. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of over 600 local markets, Bankrate generates rate tables in all 50 U.S. states. Bankrate develops and provides web services to over 100 co-branded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the Internet such as Yahoo!, AOL, CNBC, and Bloomberg. In addition, Bankrate licenses editorial content to over 500 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times, The Los Angeles Times, and The Boston Globe.
For more information contact:
The average 15-year fixed mortgage increased to 3.21 percent while the larger jumbo 30-year fixed mortgage hit a 2-month high of 4.11 percent. Adjustable rate mortgages were mixed, with the 5-year ARM dipping slightly to 3.31 percent and the 7-year ARM inching up to 3.52 percent.
Mortgage rates climbed again as U.S. economic performance has been convincing enough to increase the odds of a June interest rate hike by the Federal Reserve. Mortgage rates had fallen as the year got under way on concerns over international growth. Those concerns haven't gone away, and in fact have increased with Ukraine and Greece now drawing attention. However, these international concerns are being overshadowed by the increased likelihood of a mid-year Fed interest rate hike. Mortgage rates are closely related to yields on long-term government bonds.
One year ago, the average 30-year fixed mortgage rate was 4.48 percent. At that time, a $200,000 loan would have carried a monthly payment of $1,011.00. With the average rate now at 3.96 percent, the monthly payment for the same size loan would be $950.22, a savings of $61 per month for anyone refinancing now.
SURVEY RESULTS
30-year fixed: 3.96% -- up from 3.90% last week (avg. points: 0.30)
15-year fixed: 3.21% -- up from 3.17% last week (avg. points: 0.19)
5/1 ARM: 3.31% -- down from 3.32% last week (avg. points: 0.21)
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.
For a full analysis of this week's move in mortgage rates, go to http://www.bankrate.com/mortgagerates.
The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. Just under half of the panelists, 46 percent, expect mortgage rates to continue to climb. Thirty –one percent forecast that mortgage rates will remain more or less unchanged, while the remaining 23 percent predict that mortgage rates will pull back over the next week.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/news/rate-trends/mortgage.aspx.
About Bankrate, Inc.
Bankrate is a leading publisher, aggregator, and distributor of personal finance content on the Internet. Bankrate provides consumers with proprietary, fully researched, comprehensive, independent and objective personal finance editorial content across multiple vertical categories including mortgages, deposits, insurance, credit cards, and other categories, such as retirement, automobile loans, and taxes. The Bankrate network includes Bankrate.com, CreditCards.com, InsuranceQuotes.com and Caring.com, our flagship websites, and other owned and operated personal finance websites, including Interest.com, Bankaholic.com, Mortgage-calc.com, CreditCardGuide.com, CarInsuranceQuotes.com, Insweb.com, CreditCards.ca, and NetQuote.com. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of over 600 local markets, Bankrate generates rate tables in all 50 U.S. states. Bankrate develops and provides web services to over 100 co-branded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the Internet such as Yahoo!, AOL, CNBC, and Bloomberg. In addition, Bankrate licenses editorial content to over 500 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times, The Los Angeles Times, and The Boston Globe.
For more information contact:
Monday, February 16, 2015
Average US Rate on 30-Year Mortgage Rises to 3.69 Percent
Average long-term U.S. mortgage rates rose this week yet remained near historically low levels.
Mortgage company Freddie Mac said Thursday the nationwide average for a 30-year mortgage jumped to 3.69 percent from 3.59 percent last week. The average rate is still at its lowest level since May 2013.
The rate for the 15-year loan, a popular choice for people who are refinancing, increased to 2.99 percent from 2.92 percent last week.
A year ago, the average 30-year mortgage stood at 4.28 percent and the 15-year mortgage at 3.33 percent. Mortgage rates have remained low even though the Federal Reserve in October ended its monthly bond purchases, which were meant to hold down long-term rates.
Government data released last Friday showed a resurgent job market in January, signaling that the economy is finally regaining the kind of strength typical of a robust recovery. U.S. employers added 257,000 jobs last month, after 329,000 in December and a sizzling 423,000 jobs in November, the Labor Department reported. The November and December gains were much higher than the government had first estimated.
The job gains could boost the housing market, which has been recovering in the past few years from the recession but has struggled to maintain momentum.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was 0.6 point, down from 0.7 point last week. The fee for a 15-year mortgage was unchanged at 0.6 point.
The average rate on a five-year adjustable-rate mortgage jumped to 2.97 percent from 2.82 percent. The fee rose to 0.5 point from 0.4 point.
For a one-year ARM, the average rate increased to 2.42 percent from 2.39 percent. The fee remained at 0.4 point.
Mortgage company Freddie Mac said Thursday the nationwide average for a 30-year mortgage jumped to 3.69 percent from 3.59 percent last week. The average rate is still at its lowest level since May 2013.
The rate for the 15-year loan, a popular choice for people who are refinancing, increased to 2.99 percent from 2.92 percent last week.
A year ago, the average 30-year mortgage stood at 4.28 percent and the 15-year mortgage at 3.33 percent. Mortgage rates have remained low even though the Federal Reserve in October ended its monthly bond purchases, which were meant to hold down long-term rates.
Government data released last Friday showed a resurgent job market in January, signaling that the economy is finally regaining the kind of strength typical of a robust recovery. U.S. employers added 257,000 jobs last month, after 329,000 in December and a sizzling 423,000 jobs in November, the Labor Department reported. The November and December gains were much higher than the government had first estimated.
The job gains could boost the housing market, which has been recovering in the past few years from the recession but has struggled to maintain momentum.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was 0.6 point, down from 0.7 point last week. The fee for a 15-year mortgage was unchanged at 0.6 point.
The average rate on a five-year adjustable-rate mortgage jumped to 2.97 percent from 2.82 percent. The fee rose to 0.5 point from 0.4 point.
For a one-year ARM, the average rate increased to 2.42 percent from 2.39 percent. The fee remained at 0.4 point.
source; http://abcnews.go.com/Business/wireStory/average-us-rate-30-year-mortgage-rises-369-28916862
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