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Continue reading »]]> Fannie/Freddie are considering mortgage write-downs

In these so-called principal write-downs, a portion of the loan is forgiven for someone who’s having trouble paying. Many Democrats like it, Republicans do not. More info

Rates up

The 30yr fixed rate mortgage averaged 4.08 percent for the week clearing the 4% barrier for the first time since October 27, 2011.

FHA premiums up. 3 increases:

On 4/9 the upfront MIP will increase from 1.00% to 1.75%, and the annual MIP will increase 

Continue reading »]]> BY MATTHEW GRAHAM

Money came into both sides of the market today. Stocks are set to end the day with gains, as are Treasuries and MBS, the Mortgage-Backed-Securities that most directly influence lenders’ rates. Despite improvements in underlying bond markets, Mortgages Rates were almost perfectly flat today. Some lenders in our survey were slightly improved while others offered slightly higher rates today. The net affect was that the average among all lenders in our survey is the same as yesterday.

Keep in mind that although we’re talking about “rates” moving up or down, the actual interest rates quoted by lenders will likely not have changed from yesterday, depending on your scenario. The detectable differences would come in the form of the costs associated with those rates. If we say “rates improved,” it’s the same as saying “costs moved lower.”

As far as rates themselves, 4.0% clearly continues to constitute the best combination of interest rate and closing costs for the best-qualified scenarios. Depending on other factors, lenders may not be able to cover all the closing costs at that rate. But don’t assume that a “no closing cost” loan that’s an eighth or two higher in rate is better than a lower rate loan that happens to require some more up front.

As always, we’d strongly encourage you to take a look at the several options for interest rate and closing cost on your scenario. How long will it take you to break even on extra up front cost based on the monthly savings of dropping the rate? Conversely, is the absence of closing costs worth it once you consider a higher monthly payment? Knowing how long you plan on keeping the loan in question factors heavily into these decisions.

Today’s BEST-EXECUTION Rates

30YR FIXED – 4.0%-4.125%
FHA/VA -3.75%
15 YEAR FIXED – 3.375%, returning to 3.25%
5 YEAR ARMS – 2.625-3.25% depending on the lender
Ongoing Lock/Float Considerations

Rates and costs continue to operate near all time best levels
We’re currently further away from the very best levels than we have been in recent months
We’ve broken away from a long, stable trend and are expecting greater volatility
Rates could easily move higher or lower, but given the above facts, there seems to be more risk than reward regarding floating
(As always, please keep in mind that our talk of Best-Execution always pertains to a completely ideal scenario. There can be all sorts of reasons that your quoted rate would not be the same as our average rates, and in those cases, assuming you’re following along on a day to day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate).

Continue reading »]]> WASHINGTON – The average U.S. rate on a 30-year fixed mortgage has popped above 4% for the first time in more than three months.

The sharp increase suggests the window to buy or refinance a home at historically low rates may be closing.

Mortgage buyer Freddie Mac said Thursday that the average rate on 30-year loans jumped to 4.08% this week, from 3.92% the previous week. A month ago, it touched 3.87%, lowest since long-term mortgages began in the 1950s.

The average on 15-year fixed mortgages rose to 3.30%, from 3.16% last week and a record low 3.13% two weeks ago.

Mortgage rates are rising because they tend to track the yield on 10-year Treasury notes. The improving economy has driven prices of those securities down and yields higher in recent weeks.

National Mortgage Rates

National overnight averages Today +/- 30 yr fixed mtg 4.05% 15 yr fixed mtg 3.25% 5/1 ARM 2.91% $30K home equity loan 5.88% $30K HELOC 4.60% About these rates To compare rates in your area: Enter zip code

For the five-year adjustable loan, the average rate rose to 2.96% from 2.83%, and the average fee edged down to 0.7 from 0.8.

The average on the one-year adjustable loan rose to 2.84% from 2.79%, and the average fee was unchanged at 0.6.

The average rate on 30-year mortgages had been below 4% since the first week in December.

The past two months were the best winter for sales of previously occupied homes in five years, since the housing crisis began.

Builders have grown more optimistic the past six months after seeing more people express interest in buying a home. They have responded by requesting the most permits to build single-family homes and apartments since October 2008.

Optimism is also rising because the job market has strengthened. Employers have added an average 244,600 jobs per month from December through February. That has helped lower the unemployment rate to 8.3%, the lowest level in nearly three years.

Even with the improvement, the housing market is still weak. Millions of foreclosures and short sales — when a lender accepts less than what is owed on a mortgage — remain on the market. And the housing crisis and recession have also persuaded many Americans to rent instead of buy, which has led to a drop in homeownership.

Economists say housing is years away from returning to full health.

To calculate its average rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week.

The average rates don’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1% of the loan amount.

The average fees for the 30-year and 15-year fixed loans were 0.8, unchanged from 0.8 last week.