Tag Archives: Freddie Mac

Freddie Mac announced Thursday that after more than three months of record-low drops, mortgage rates slid up this week. The GSE's Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) averaged 3.55 percent (0.7 point) for the week ending August 2, up from 3.49 percent the previous week. The 15-year FRM also slid up, averaging 2.83 percent (0.6 point) from 2.80 percent last week.

Freddie Mac released the results of its second quarter refinance analysis Wednesday, revealing that homeowners who refinance continue to strengthen their housing situations. Freddie Mac's report showed that 81 percent of homeowners who refinanced their first-lien home mortgage either maintained the same loan amount or lowered their principal balance in the year's second quarter.

Starting September 1, Fannie Mae and Freddie Mac will lower their standard modification interest rate from 4.625 percent to 4.25 percent. The GSEs stated the rates are adjusted based on market conditions.

The GSE announced that it will align requirements for mortgages with loan-to-value (LTV) ratios that are equal to or less than 80 percent with those for mortgages with LTV ratios greater than 80 percent. In addition, Freddie Mac said it is evaluating the Relief Refinance program by focusing on its Open Access offering and determining the best approach to maximize the program's reach.

In recent months, data from the Mortgage Bankers Association, Freddie Mac, Bankrate, and other firms has shown mortgage rates steadily falling, hitting new lows week after week in some measures. However, Capital Economics contends that there is actually little evidence to suggest that this activity is translating into heavier demand. While the Federal Reserve's Senior Loan Officer Survey reported rising demand for mortgage finance in the past three quarters, this increase in demand hasn't shown up in mortgage applications for home purchase, which have remained relatively flat.

Lingering worries about the European debt crisis continue to drive investors to U.S. government bonds, sending fixed mortgage rates down to another record low. According to Freddie Mac's Primary Mortgage Market Survey (PMMS), the 30-year fixed-rate mortgage (FRM) averaged 3.49 percent (0.7 point) for the week ending July 26, down from 3.53 percent the previous week. At the same time in 2011, the 30-year FRM averaged 4.55 percent.

Increased home sales continue to help the United States out of its Great Recession, but uneven job growth is stunting recovery, according to Freddie Mac's U.S. Economic and Housing Market Outlook for July. The report, released Wednesday, showed that record-breaking low mortgage rates and refinances through HARP 2.0 drove up housing demand, leading to increases in housing starts, home sales, and prices in many markets. However, flagging job growth was a major issue.

Florida-based InCharge Debt Solutions announced Tuesday a partnership with Freddie Mac to create InChargeDebt Solutions/Freddie Mac Borrower Help Network which will provide educational and informational assistance to struggling homeowners with Freddie Mac-owned mortgages.

Business Solutions, an affiliate of the American Bankers Association, and Freddie Mac announced in a release Wednesday the extension of their 10-year old alliance helping community banks compete in the purchase money mortgage market and support the nation's housing recovery.

The 30-year fixed averaged 3.56 percent (0.7 point) for the week ending July 12, down from 3.62 percent the previous week. At the same time in 2011, the 30-year fixed averaged 4.51 percent. This week marks the 16th straight week that the 30-year average has stayed below 4 percent. The 15-year fixed also fell, averaging 2.86 percent (0.7 point), a drop from 2.89 percent last week. A year ago, the 15-year fixed averaged 3.65 percent.