Tag Archives: Mortgage Rates

Fixed mortgage rates slipped further down, maintaining their near-record low averages despite evidence of an improving economy, according to Freddie Mac's Primary Mortgage Market Survey. The Fed stated that it expects economic growth to remain moderate and then pick up gradually. The 30-year fixed-rate mortgage, which has been below 4 percent every week in 2012 except one so far, averaged 3.88 percent (0.7 point), a drop from last week's average of 3.90 percent.

Fixed rates made a slight upward tick this week, Freddie Mac reported in its weekly market survey. The 30-year fixed-rate mortgage averaged 3.90 percent (0.8 point) for the week ending April 19, up from last week's average of 3.88 percent, and down from last year at this time, the 30-year FRM averaged 4.80 percent. The 15-year fixed rose to 3.13 percent (0.7 point); last week the 15-year averaged 3.11 percent and 4.02 percent a year ago at this time.

In response to mortgage servicing rules the Consumer Financial Protection announced it may propose, Fitch Ratings issued a statement and said it believes mortgage servicers will incur increased operational, compliance, and reporting expenses if the rules take effect. To create more transparency, the CFPB said it is considering rules which require clear monthly mortgage statements, a warning before interest rates adjust, options to avoid ""force-placed"" insurance, and early information to keep customers out of foreclosure.

Following a disappointing employment report, fixed rate averages fell for the third week in a row, with the 15-year fixed-rate hitting a new low, while the 30-year rate continues to fall further beneath 4 percent, according to Freddie Mac’s Primary Mortgage Market Survey. The 15-year rate dropped to 3.11 percent (0.7 point), hitting a record low from when it averaged 3.13 percent on March 8, 2012. Last week, the 15-year's average was 3.21 percent and 4.13 percent a year ago during this time.

According to the March 2012 Fannie Mae National Housing Survey, 48 percent of Americans who responded expect rental prices to increase, and the expectation is that they will go up by 4.1 percent over the next 12 months, the biggest projected increase recorded to date. Also, 33 percent of respondents expect home prices to increase over the next 12 months. Americans project home prices will go up by 0.9 percent over the same time period. If respondents were going to move, 66 percent say they would buy a home.

Starting next Monday on April 9, FHA upfront mortgage insurance premiums will rise from 1 percent to 1.75 percent of the base loan amount, and the annual mortgage insurance premium will rise by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount. Even if one hasn't applied for a loan just yet, Dan Green, loan officer with Waterstone Mortgage in Cincinnati and author of themortgagereports.com, said by getting an FHA loan registered by April 9, one can avoid paying those premiums.

The 30-year fixed-rate mortgage is still below 4 percent and showed very little movement since last week, according to Freddie Mac's Primary Mortgage Market Survey. The 30-year fixed-rate mortgage averaged 3.98 percent (0.7 point) for the week ending April 5, 2012, down just slightly from last week's average of 3.99 percent but a significant decrease compared to this time last year when the 30-year rate averaged 4.87 percent.

A lawsuit was filed against GFI Mortgage Bankers alleging it charged African American and Hispanic borrowers higher interest rates and fees on mortgage loans because of their race rather than their creditworthiness, the Justice Department announced Tuesday. At a time when so many American homeowners - of all races - are struggling to make their mortgage payments, the U.S. attorney for the Southern District of New York says it is unacceptable that GFI's practices resulted in higher fees and rates for minority customers.

The 30-year fixed-rate mortgage positioned itself back below 4 percent this week as economic indicators point to a weaker housing market and economy, according to Freddic Mac’s Primary Mortgage Market Survey. Last week, the 30-year fixed-rate averaged 4.08 percent, above 4 percent for the first time since October 2011. This week ending March 29, the 30-year averaged 3.99 percent (0.7 point), barely below the 4 percent mark. The 30-year is still below last year's average at this time, when it was 4.86 percent.

The Urban Land Institute released its Real Estate Consensus Forecast Wednesday morning, and overall, the 38 real estate economists and analysts surveyed project broad improvements for the economy. With signs of improvement in the housing sector already emerging, participants expect to see housing starts nearly double by 2014, and project home prices will begin to rise in 2013. The average home price, which has declined somewhere between 1.8 percent and 4.1 percent over each of the past three years, according to FHFA data, is expected to stabilize in 2012, followed by a 2 percent increase in 2013, and a 3.5 percent increase in 2014.