Tag Archives: Mortgage Rates

The Federal Reserve decided Wednesday to pump another $600 billion into the economy in the hopes of bolstering what it called a ""disappointingly slow"" recovery. The capital injection will come in the form of purchases of long-term Treasury securities by the central bank, about $75 billion a month between now and the end of June 2011. The goal is to buoy economic growth by inducing banks to lend more while keeping interest rates low. If it plays out correctly, the move is expected to spur spending, foster job creation, and keep deflation in check.

Mortgage rates are still incredibly low by historical standards. They've been fluctuating around record lows not seen in more than a half-century for a good many months now. This week was one where that movement was upward, according to industry data released Thursday. A nationwide survey conducted by Freddie Mac found that 30-year fixed-rate mortgages rose to 4.23 percent, while 15-year rates edged up to 3.66 percent. Bankrate reports that the larger jumbo 30-year fixed rate reversed last week's decline, returning to 5.10 percent.

Home loan production is expected to come in below $1 trillion for the 2011 calendar year, according to figures released this week by the Mortgage Bankers Association (MBA). If the trade group's projections pan out, it will be the industry's lowest level of home lending volume in 14 years. MBA's economists say next year's drop will be driven by a decline in refinance originations as mortgage rates head higher, but the industry will see an increase in purchase originations.

Industry data released by the Mortgage Bankers Association (MBA) Wednesday shows that consumer demand for home loans intensified last week as mortgage interest rates dropped to their second-lowest level on record. MBA says its measurement of total mortgage loan application volume rose 3.2 percent for the week ending October 22, after dipping more than 10 percent the week before.

The freefall for mortgage interest rates hit a pause this week. Rates on 30-year mortgages rose for the first time in five weeks, edging up to 4.21 percent, according to data released by Freddie Mac Thursday. The 15-year fixed-rate mortgage also inched up to 3.64 percent. Adjustable-rate mortgages, on the other hand, slipped to new record lows. Bankrate says the ongoing foreclosure controversy surrounding court documents and paperwork errors could ultimately be passed along to future borrowers through higher mortgage rates.

Consumer demand for mortgages waned last week, as interest rates edged up for the first time in six weeks. The Mortgage Bankers Association says its index of total mortgage loan application volume dropped 10.5 percent for the week ending October 15. It's the steepest plunge seen in mortgage activity in the past four months, and some market observers are attributing the falloff to the recent turmoil surrounding foreclosure paperwork errors by servicers and the uncertainty it's brought for buyers of distressed properties.

The jumbo market is seeing significant improvement in interest rates and market liquidity, according to Total Mortgage Services, LLC in Connecticut. The lender and broker is now offering 30-year fixed jumbo mortgages up to $729,000 at a rate of 4.875 percent. This considerable drop in rates has increased the number of purchase and refinance transactions for Total Mortgage Services.

The last time rates for 30-year mortgages were as low as they are now was in April 1951. Thirty-year fixed-rate mortgages have been under 5 percent for 23 weeks in a row, according to data gathered by Freddie Mac. This week, the GSE reports that the average 30-year rate fell again to break the survey's all-time low, hitting 4.19 percent. The 15-year fixed rate also averaged a record low of 3.62 percent.

Home loan applications for mortgage refinancing increased for the first time since late August, as borrowers sought to take advantage of the lowest market interest rates in more than 50 years. The Mortgage Bankers Association (MBA) reported Wednesday that its measurement of refinance applications jumped 21 percent for the week ending October 8, 2010. Refinance volumes are now close to their highest level of the year.

Virginia-based mortgage product provider Mortgage Harmony Corp announced last Tuesday it will partner with Credit Union Mortgage Association (CUMA) to enable the company to offer the Harmony Loan to its members. CUMA, also based in Virginia, is a full-service mortgage company that originates and services loans for its members through a private label model.