Tag Archives: Refinance

Interest rates on fixed-rate mortgage loans inched up this week amid mixed economic data, according to Freddie Mac. The GSE's weekly survey puts the average 30-year fixed rate at 4.52 percent for the week ending July 21, and the 15-year rate at 3.66 percent. Adjustable-rate mortgages (ARMs) were mixed in Freddie's latest survey. The company's analysts calculate average interest rates based on data from about 125 lenders across the country.

After changing little over the past month, both long- and short-term mortgage rates rose this week, with some loan products increasing in the range of 10 basis points. The 30-year fixed rate averaged 4.60 percent, while the 15-year fixed came in at 3.75 percent. Adjustable-rate mortgage also headed higher. Freddie Mac explained that mortgage rates followed Treasury yields higher this week, but the company says borrowing costs remain quite affordable by historical standards.

The nation's second largest mortgage company has again reported a decline in the percentage of loans it holds that are 90 or more days past due and in foreclosure. Freddie Mac says its serious delinquency rate for single-family mortgages dropped to 3.53 percent in May. That's down four basis points from 3.57 percent the month before and down 53 basis points from 4.06 percent in May 2010. May's rate was the lowest it's been since September of 2009.

Freddie Mac said Thursday that mortgage interest rates, while mixed this week, held steady at low levels for the second straight week. The 30-year fixed rate matched last week's 4.50 percent average, while the 15-year rate edged up to 3.69 percent.

The delinquency rate on loans included in commercial mortgage-backed securities (CMBS) fell four basis points in May to 9.18 percent, according to Moody's. The dollar balance of past due loans was approximately $56 billion. While loans totaling $3.4 billion became newly delinquent, previously delinquent loans totaling $4.1 billion became current, worked out, or were disposed. The top 25 metros continue to outperform the broader market with a delinquency rate of 8.48 percent, 70 basis points below the national average.

Under the terms of a settlement reached with HUD late last week, U.S. Bank will pay $1.2 million to resolve allegations that it failed to comply with Federal Housing Administration (FHA) requirements in connection with 27 mortgage loans. U.S. Bank is the FHA's eighth largest mortgage lender. U.S. Bank did not admit any liability, but HUD documented losses of more than $465,000 in relation to these loans.

Fannie Mae has released new details on its book of business, which shows the share of mortgages it owns or guarantees that's past due by three months or longer has been on a steady decline for a year now. The nation's largest mortgage company reported that its seriously delinquent rate on single-family mortgage loans slipped to 4.44 percent in February of this year. That's down just 1 basis point from 4.45 percent in January, but it marks the 12th straight month that the rate has decreased.

The New Democratic Coalition has added the nation's housing finance system to its list of things to ""modernize."" They've outlined principles for following through with the wind-down of Fannie and Freddie while maintaining a limited government role to ensure access to the 30-year fixed-rate mortgage. But the debate is intense over whether the 30-year mortgage should stick around. With or without it, one research group says the numbers prove government guarantees aren't necessary to entice private investors.

Freddie Mac forecasts a 5 percent increase in 2011 home sales over 2010, according to its U.S. Economic and Housing Market Outlook for April. The expected pick-up in home sales is due to recent positive employment reports, including gains in the real estate sector. The GSE's outlook also contends that refinancing will likely account for a smaller share of loan applications later this year as wealthy borrowers decrease and mortgage rates increase.

Due to a drop in hirings, mortgage sector jobs lost traction last year, going from a net gain in 2009 to a net loss in 2010, according to an industry report released this week. Layoffs in real estate finance outnumbered hirings by 3,100 jobs last year. In 2009, hirings exceeded layoffs by more than 8,000. Recent data from the Bureau of Labor Statistics show employment in the mortgage sector has fallen more than 50 percent over the last five years.