Vermilion Realty Blog

March 11, 2010

Rate Update

Filed under: Rates — Tags: — Don Grafues @ 8:14 am

Weekly update on rates

Weekly update on rates

 
The Mortgage Bankers Association came out with their weekly statistics about mortgage applications. Applications last week rose 1.2 percent (unadjusted) from the prior week. Click here to read the entire article. The weekly interest rate averages are below.
  • The average interest rate for 30-year fixed mortgages rose to 5.01 percent from 4.95 percent. Points decreased to 0.82 from 0.99.
  • Average interest rate for 15-year fixed mortgages increased to 4.32 percent from 4.27 percent, yet points decreased to 0.88 from 1.36.
  • The average interest rate for one-year ARMs rose to 6.80 percent from 6.77 percent, with points slightly increasing to 0.3 from 0.29.
Don Grafues
Resource: Mortgage Bankers Association & REALTOR.com
 

March 10, 2010

Program To Emphasize Short Sales

Filed under: Financing — Tags: — Don Grafues @ 8:10 am
 
April 5 marks the start date for a new program to help homeowners facing foreclosure. There is a concern that if foreclosures continue at a high rate, the effect could be catastrophic to an economic recovery. Read the full article here.

Don Grafues
Resource: REALTOR.org & The New York Times
 

Rates Predicted To Stay Low

Filed under: Rates — Tags: , — Don Grafues @ 7:00 am
 
Goldman Sachs predicts mortgage rates will stay low, partially due to low demand.

Don Grafues
Resource: REALTOR.org
 

March 8, 2010

Refinancing Not Easy

Filed under: Financing — Tags: — Don Grafues @ 7:34 am
 
Mortgage rates are at a low not seen for many years. Yet many of us are unable to capitalize on the rates by refinancing.

According to The Wall Street Journal approximately 37% of borrowers with 30 year fixed loans have rates 6 percent or higher.

The obstacles to refinancing are significantly lower home values, lower wages and tighter (self imposed) lending requirements. As the article states, the people who can refinance are the ones who need it the least.

Don Grafues
Resource: The Wall Street Journal
 

March 6, 2010

Mortgage Rates Decline

Filed under: Rates — Tags: , — Don Grafues @ 12:05 pm
 
Percent

Freddie Mac’s weekly survey of rates shows a decline in 30 year fixed loans.

30 year fixed loans averaged 4.97 percent with 0.7 points for the week ending March 4. The week prior average was 5.05 percent and the same period a year ago was 5.15 percent.

The 15 year fixed rate was 4.33 percent, also with 0.7 points.

Don Grafues
Resource: FreddieMac
 

Rates Up A Tad

Filed under: Financing, Rates — Tags: — Don Grafues @ 7:00 am
 
Rates on 30 year fixed mortgage rose slightly last week going above the 5 percent level. 30 year average was 5.05 percent, 15 year fixed rates were up a bit to 4.40 percent.

Don Grafues
Resource: REALTOR.org
 

March 1, 2010

A Proposal To Help Unemployed Keep Their Homes

Filed under: Financing — Tags: , — Don Grafues @ 12:46 pm
 
The Mortgage Brokers Association made a proposal last Wednesday to help the unemployed keep their homes. The proposal is for mortgage servicers to lower mortgage payments to 31 percent of household income for nine months. The amount of the reduction would be added to the end of the mortgage.

The Treasury would make loans available to the servicers to make up the amount of the reduction. This would keep the holder of the mortgage intact.

A concern is that nine months will not be sufficient as finding work in nine months is very optimistic.

Treasury needs to give it approval for this program to be implemented.

Don Grafues
Resource: CNNMoney.com & REALTOR.org
 

February 27, 2010

Home Values And Perpetual Motion

Filed under: Financing, Market Info — Tags: , , , — Don Grafues @ 8:27 am
 
REALTOR.org printed an article in which Todd Zywicki, a George Mason University law professor, argues that fraud was not the culprit of the housing meltdown. And his ideas are easily understood.

A simplified version of what happed is as follows;
  • From 2001 to 2004 the Fed kept interest rates very low making adjustable rate mortgages very attractive.
  • While these loans turned out to be risky, at the time homebuyers were making a smart decision to take advantage of these attractive, low cost loans.
  • Once the Fed began raising interest rates, the adjustable rate mortgages began adjusting making it difficult for some home owners to continue making payments and they defaulted on their mortgage.
  • As foreclosures increased, prices were driven down putting more people in an “underwater” situation.
This cycle of lower home values resulting in more defaults resulting in more foreclosures became perpetual, requiring extraordinary action to break the cycle.

Don Grafues
Resource: RALTOR.org
 

February 25, 2010

FED Holds Rates

Filed under: Financing — Tags: , — Don Grafues @ 12:15 pm
 
The FED does not raise rates. This will help keep mortgage rates low.
 

February 24, 2010

Rates Approaching Record Lows

Filed under: Financing, Rates — Tags: — Don Grafues @ 8:06 am
 
Freddie Mac reports a slight lowering of interest rates last week.
  • 30 year fixed averaged 4.93 percent.
  • 15-year fixed loans slipped to 4.33 percent.
  • 5-year ARM dropped to 4.12 percent.
  • 1-year ARM moved to 4.23 percent.
Don Grafues
Resource: Freddie Mac & REALTOR.org
 
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