News

Long-term fixed mortgage interest rates fell back this week, breaking a six-week streak of steep increases. Data released by Freddie Mac Thursday showed rates for 30-year fixed-rate mortgages averaging 4.81 percent, and 15-year rates at 4.15 percent. A separate study by Bankrate also showed declines for most loan products - all except for the larger jumbo 30-year fixed rate, which inched higher to 5.59 percent. Bankrate expects continued economic improvement to push mortgage rates higher as the new year unfolds.

The government's key foreclosure prevention program has put 504,648 distressed homeowners into permanently modified loans since its launch in March 2009. Treasury released new numbers for the Home Affordable Modification Program (HAMP) Wednesday, and in addition to crossing the 500K threshold, the data show that servicers stepped up their use of the program. Permanent modifications in November rose 26 percent compared to October, and 20 percent more trial mods were started.

The Federal Reserve Board on Wednesday approved an interim rule amending Regulation Z, which implements the Truth in Lending Act (TILA). The board is issuing this interim rule, in response to public comments, to clarify certain aspects of a September 24th interim rule. The September rule implements provisions of the Mortgage Disclosure Improvement Act (MDIA), which amended TILA to require mortgage lenders to disclose examples of how a loan's interest rate or monthly payments can change.

Home prices bounced back slightly during the month of October, according to data released by the Federal Housing Finance Agency (FHFA) Wednesday. FHFA's house price index is calculated using purchase prices of homes backing mortgages that have been sold to or guaranteed by Fannie Mae and Freddie Mac. It showed that residential property values rose 0.7 percent on a seasonally adjusted basis from September to October, however, September's price change was revised downward.

After reviewing a report and recommendations presented to him, New Jersey Chief Justice Stuart Rabner announced on Monday a series of steps to protect the integrity of foreclosure filings in the state. The report featured a review of robo-signing irregularities by mortgage lenders and servicers and included analysis of actions other states had taken.

Wells Fargo has reached an agreement with California Attorney General Edmund G. Brown Jr., to provide loan modifications worth more than $2 billion to an estimated 14,900 California homeowners with pick-a-pay loans originated by World Savings and Wachovia, banks Wells Fargo acquired. Wells Fargo will also pay an additional $32 million to thousands of borrowers who lost their homes through foreclosure. The bank says the majority of Wachovia's Pick-a-Payment customers reside in California.

Consumer demand for home mortgages fell sharply last week, as interest rates continued to edge up from six-month highs. The Mortgage Bankers Association (MBA) reported Wednesday that its measurement of total mortgage loan application volume plunged 18.6 percent for the week ending December 17. The steep drop was driven by a 24.6 percent decline in applications for mortgage refinancing, which have fallen for six straight weeks now.

Existing-home sales got back on an upward path in November, resuming a growth trend since bottoming in July, the National Association of Realtors (NAR) reported Wednesday. Sales of previously owned homes rose 5.6 percent last month. Distressed homes accounted for 33 percent of the month's total sales volume. Housing inventory at the end of November fell 4 percent to 3.71 million existing homes available for sale, which represents a 9.5-month supply at the current sales pace.

The call for federal officials to establish industry-wide mortgage servicing and foreclosure standards is getting louder. A group of more than 50 senior economists, academic leaders, and influential investors sent a letter to the heads of federal regulatory agencies Tuesday, urging them to take the lead in setting national standards for mortgage loan servicers. The group argues that widely reported fraud in servicers' dealings with homeowners and foreclosure procedures demands new standards be adopted now.

The latest RE/MAX National Housing Report shows housing prices remaining relatively stable, with sales still experiencing some declines. The company's survey of 54 metropolitan areas revealed that November sales were 4.9 percent below October sales, and 25.9 percent below sales for November 2009. The average price drop was 1.7 percent from last November, however, 36 of the 54 metros posted price increases compared to their year-ago levels.