Tag Archives: Mortgage loan

10 year treasury moves up and the 30 Year mortgage rates are up


This is pretty interesting because this is the other direction than what the experts thought Operation Twist would have on the market.  John Murphy pointed this out earlier on his post, then tonight I saw the St Louis Fed had updated their 30year mortgage average rates.

There are 2 things I find really interesting here but can’t explain.

1) the spread gets larger between the mortgage rates and the 10 year treasury the lower the treasury goes.

2) the 10 year treasury is going up, when most thought it would go down as a result of Operation Twist.

Note: the 30 year mortgage is updated as of 10/13/2011.    The 10 year treasury is updated as of 10/11/2011 at 2.18%

Just curious what Edina Realty Mortgage rates are today…  Looks like they are heading up.

Today’s Mortgage Rates

The current interest rates shown below are based on a purchase of a single-family, primary residence. For current refinance rates, contact us

as of 10/13/2011 09:15 AM Central

Product Interest Rate APR
Conforming1 and FHA1 Loans
30-Year Fixed 4.250% 4.434%
30-Year Fixed FHA 3.750% 4.550%
15-Year Fixed 3.375% 3.692%
7-Year ARM 3.000% 3.238%
5-Year ARM FHA 2.750% 2.908%
Jumbo1 Loans – Amounts that exceed conforming loan limits1
30-Year Fixed 4.500% 4.644%

 Equal Housing Lender

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The Nation’s 11th Largest Mortgage lender is getting out of the business due to excessive regulations


Image representing MetLife as depicted in Crun...

Image via CrunchBase

WOW!  This puts things into perspective a bit.  We all complain about the banks on their underwriting and that they are “not lending” now.  I knew they were pummeled with new regulations but had no idea to what extent.

The nation’s 11th largest mortgage servicer and 13th largest mortgage originator is getting out of the business due to excessive regulations according to HousingWire.  If a company can walk away from a$115.9billion servicing business it has to be bad…

MetLife Bank, a division of insurer MetLife Inc. (MET: 31.75 0.00%), is selling the bank’s mortgage business, citing uncertainty in the marketplace and a regulatory environment that requires excessive resources.

…In 2010, MetLife Home Loans ranked as the 11th largest mortgage servicer in the U.S., with its servicing business valued at $115.9 billion in the fourth quarter. The company also ranked 13th on the list of mortgage originators, holding 1.4% of the market and originating roughly $22 billion in mortgages last year.

Read Full Article

 

This not the direction we should be heading in to improve the housing market.  Having more banks lending would be helpful, not banks walking away from the business…

 

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Mortgage rates hit record low of 3.94%: Freddie


Mortgage rates hit record low of 3.94%: Freddie.

Report from HousingWire that the 30 year fixed rate mortgage average is down to 3.94%.

The average rate for a conventional 30-year, fixed-rate mortgage dropped below 4% for the first time in history amid increasing global concerns, according to Freddie Mac.

Today’s rates from Edina Realty nudged up a bit from yesterday, I suspect these will dip back down.

Today’s Mortgage Rates

The current interest rates shown below are based on a purchase of a single-family, primary residence. For current refinance rates, contact us

as of 10/06/2011 09:35 AM Central

Product Interest Rate APR
Conforming1 and FHA1 Loans
30-Year Fixed 4.125% 4.308%
30-Year Fixed FHA 3.750% 4.550%
15-Year Fixed 3.250% 3.566%
7-Year ARM 2.875% 3.180%
5-Year ARM FHA 2.750% 2.908%
Jumbo1 Loans – Amounts that exceed conforming loan limits1
30-Year Fixed 4.375% 4.518%
 Equal Housing Lender

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Bill allows tax-free use of retirement funds for mortgage payments


Bill allows tax-free use of retirement funds for mortgage payments.

This is interesting, a bill that would allow a homeowner to tap into their retirement funds without the normal 10% penalty to cover their mortgage payments.  Interesting how it is only for Fannie Mae and Freddie Mac  mortgages…

We will have to see if this bill becomes law.

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WSJ analysis: Minnesota has lowest mortgage denial rate


I wonder if this is the reason Minnesota ranked # 1 in the Nation for Mortgage Fraud?  20% still seems high to me for denial rate.  I would assume someone may not qualify for the best interest rates, but may be able to put into a higher rate mortgage instead rather than just simply denied.

This story is Edina Realty, just re-posting:

The majority of homebuyers who sought home loans in Minnesota last year were approved, according to analysis from the Wall Street Journal. In fact, the newspaper’s findings show the state had the lowest mortgage application denial rate in the country in 2010 for homebuyers seeking a new mortgage as well as homeowners trying to refinance an existing mortgage.

 

According to the research, which looked at data from the nation’s 10 largest mortgage lenders, Minnesota’s home loan application denial rate was 19.9 percent last year. The average rate for the entire nation was 26.8 percent – up markedly from 2009’s level of 23.5 percent.

Minnesota was the only state with a mortgage application denial rate lower than 20 percent, the Journal says.

Minnesota was the only state with a mortgage application denial rate lower than 20 percent, the Journal says. The mortgage application denial rate for Wisconsin and North Dakota was 23 percent and 21.1 percent, respectively – both lower than the national average.

 

In addition to the positive mortgage application acceptance rate in Minnesota, home loan interest rates have stayed near the same levels as at the beginning of 2011, making this year a premier time to purchase homes for sale in the state.

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30 Year Fixed Rate Mortgage drops, is it the result of The Twist?


I had been posting every business day on the 10 year treasury and the 30 year mortgage since the announcement of Operation Twist.  The reason why I am posting info on the 10 year treasury is that the 30 year fixed rate mortgage tends to track closely. It is not tied directly together, but the 10 year treasury is used as a guide for banks when they buy and sell mortgages.

Earlier this week the 10 year treasury started moving higher.  The 30 year fixed rate followed upwards.  Yesterday I got busy and forgot to track these and sure enough – the 30 year fixed rate mortgage rate dropped today.

The 10 year treasury nudged down a bit today as did the 30 year fixed rate mortgage.  The national average rate for a 30 year fixed rate mortgage today is 4.01%.  This chart below shows the average 30 year fixed rate mortgage compared to the 10 Year Treasury.  The 30 year mortgage rate data is updated as of 9/29/2011, the 10 year treasury is updated as of 9/27/2011 at 2.01.  (today it closed at 1.96)

 

click to enlarge

Now let’s look at where Edina Realty Mortgage Rates are today.

Today’s Mortgage Rates

The current interest rates shown below are based on a purchase of a single-family, primary residence. For current refinance rates, contact us

as of 09/29/2011 03:10 PM Central

Product Interest Rate APR
Conforming1 and FHA1 Loans
30-Year Fixed 4.125% 4.308%
30-Year Fixed FHA 3.750% 4.550%
15-Year Fixed 3.250% 3.566%
7-Year ARM 2.875% 3.180%
5-Year ARM FHA 2.750% 2.908%
Jumbo1 Loans – Amounts that exceed conforming loan limits1
30-Year Fixed 4.375% 4.518%
Equal Housing Lender
I don’t know if the rates will drop further, it is possible I guess.  Many experts believe it will, I am still a little cautious.  The 30 year fixed rate mortgage hasn’t dipped below 4% since it has been tracked by the Feds, so this may be a glass wall that it can’t break through.  Judging by the graph, it appears the spread between the 10 year treasury and the 30 year fixed rate mortgage gets larger.  So the question is how much further does the 10 year treasury have to drop to pull the rate below 4%?  What do you think, post a reply.   It has certainly grabbed my interest again to continue following this.

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Mortgage Rates after the Twist, 09/26/2011 (day 5)


Mortgage

Image by Rev Dan Catt via Flickr

Still watching the 10 Year Treasury to see if there is any indication that rates might come down.  Today the Dow soared 272 points to close over 11,000.  This is great news by itself…  

The 10 Year Treasury rose 5.31% closing at 1.9040.  Keep in mind, even though it increased – it is still extremely low.  

The 10 Year Treasury is heading in the wrong direction to bring mortgage rates even lower, but as you can see the 10 year Treasury moves a lot more than the mortgage rates do.  The 10 Year treasury may yet drop and bring the mortgage rates down.  Time will tell.  As of today, the 10 year treasury is going up and the mortgage rates have not changed:  (oh bummer, we appear to be stuck at record low interest rates.)

Today’s Mortgage Rates

The current interest rates shown below are based on a purchase of a single-family, primary residence. For current refinance rates, contact us

as of 09/26/2011 09:58 AM Central

Product Interest Rate APR
Conforming1 and FHA1 Loans
30-Year Fixed 4.000% 4.181%
30-Year Fixed FHA 3.750% 4.550%
15-Year Fixed 3.125% 3.440%
7-Year ARM 2.750% 3.122%
5-Year ARM FHA 2.750% 2.908%
Jumbo1 Loans – Amounts that exceed conforming loan limits1
30-Year Fixed 4.250% 4.392%
 
 

 

I’ll keep tracking this for a while longer, or at least until I get bored with it!  

 

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10 Million more Mortgages set to default.


Wow, OMG, WTF, how many other 3 letter words could describe this?

I was reading this article from HousingWire and the numbers are staggering.  If these numbers prove to be accurate I will be eating my words that “I think we have weeded a lot of our shadow inventory by Short Sales“.  10 Million – that is only 200,000 more mortgage defaults per State!  (and I hardly think North and South Dakota will have that many mortgage defaults, that’s more than half their population!  Sorry Dakotan’s – couldn’t resist!)  Good thing we have managed to sell off that excess 10,000 in inventory over the last 3.5years, looks like we have another 60.5 years in inventory to sell off!

Thought I would pass this along.  I am a little skeptical of these figures because these are figures being used to “get Congress to act” and quite often that kind of stuff involves Hockey Stick charts and such.  I do know there is a big number in shadow inventory.  I have been reading numbers more in line with 1.5million to 2million in Shadow Inventory and no one seems to really pin-point a number just taking estimates based on late payments.  But 10 million, that is a BIG number!

Any opinions on this?  Do you believe these numbers are for real?  1 in 5 outstanding home loans?  That tells me that the unemployment and under-employment are far bigger problems than we are being told… 

Roughly 10.4 million mortgages, or one in five outstanding home loans in the U.S., will likely default if Congress refuses to implement new policy changes to prevent and sell more foreclosures, according to analyst Laurie Goodman fromAmherst Securities Group….

…”Many analysts looking at the housing problem mistakenly assume it is limited to loans that are currently non-performing (or 60-plus days past due). Such borrowers have a high probability of eventually losing their homes. However, the problem also includes loans with a compromised pay history; these are re-defaulting at a rapid rate,” Goodman told a Senate subcommittee Tuesday.

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More than 22% of mortgages still underwater


This is news, but not really.  I am actually surprised it is not higher.  With the values dropping as far as they have, it is surprising to me that more people don’t owe more than their home is worth right now.

I do believe that with inflation, improved employment that this will self correct over time.  The big question is how long will it take to correct?  I have heard guess-ta-mates anywhere from 3 to 12 years out.  My guess-ta-mate, well that is one of the purposes of my blog…  it depends on the job situation – if our economy turns around and people get good paying jobs again, we will recover quickly.  If this economy lingers, it will take much longer.  How’s that for stating the obvious?  I am trying track the factors that influence our housing market on this blog, so far I have not discovered a crystal ball that gives an exact date.  If you can predict the jobs recovery, you can predict the housing market recovery…

Nearly 11 million properties, roughly 22.5% of all U.S. homes, were worth less than the underlying mortgage in the second quarter, according to CoreLogic.

Read Full Article from Housing Wire

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US Mortgage Purchase Applications at 15-Year Low


This is not surprising news, and I don’t find it too alarming at this point.  We have had a turbulent couple weeks in the stock market bring uncertainty to many households.   We are back to 1996 levels on mortgage applications.  What is surprising is that it is the complete opposite of record low interest rates….  which puts into perspective the extent of the uncertainty out there…

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 2.4 percent in the week ended Aug.19.

The seasonally adjusted gauge of loan requests for home purchases tumbled 5.7 percent to its lowest level since December 1996, the MBA said.

“This decline impacted borrowers across the board, with purchase applications for jumbo loans falling by more than 15 percent and purchase applications for the government housing programs falling by 8.2 percent.” The refinance share of mortgage activity increased to 79.8 percent of total applications from 78.8 percent the week before.

Fixed 30-year mortgage rates averaged 4.39 percent, up from 4.32 percent.

Full Story from CNBC

Calculated Risk is great at graphing this information.  Once again another great chart from Calculated Risk showing the mortgage applications:

Mortgage Applications Aug 24 2011 CalculatedRiskBlog

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