Posts Tagged ‘El Dorado County California’

Spread the Word: Mortgage Rates Below 4%

November 22 2014

Fixed-rate mortgages fell back near yearly lows again this week, lowering borrowing costs for home buyers and refinancers. The 30-year fixed-rate mortgage averaged 3.99 percent this week, Freddie Mac reports in its weekly mortgage market survey.

“If you are planning to buy a home in the next year, it’s better to do it sooner rather than later,” Frank Nothaft, Freddie Mac’s chief economist, said in the VIDEO noted below.

Freddie Mac reported the following national averages for the week ending Nov. 20:

  • 30-year fixed-rate mortgages averaged 3.99 percent, with an average 0.5 point, dropping from last week’s 4.01 percent average. The 30-year fixed-rate mortgage dipped to 3.97 percent in mid-October, its lowest average so far this year.
  • 15-year fixed-rate mortgages averaged 3.17 percent, with an average 0.5 point, decreasing from last week’s 3.2 percent average. A year ago, 15-year rates averaged 3.27 percent.
  • 5-year hybrid adjustable-rate mortgages averaged 3.01 percent, with an average 0.5 point, falling slightly from last week’s 3.02 percent average. A year ago, 5-year ARMs averaged 2.95 percent.

Video at: https://www.youtube.com/watch?v=s9-KO08p6Gc

Mortgage Applications Take Surprising Turn

November 19 2014

Loan demand was on the rise last week, posting a strong rebound that was driven mostly by applications to purchase a home, the Mortgage Bankers Association reports in its seasonally adjusted weekly mortgage market survey, reflecting the week ending Nov. 14. The increase in demand came despite interest rates mostly staying flat for the week.

Total application volume, reflecting applications for home purchases and refinances, climbed nearly 5 percent. Refinance applications rose 1 percent week-to-week, while applications for home purchases, viewed as a gauge of future buying activity, surged 12 percent. It was the highest level for purchase applications since July, the MBA reports.

“The MBA and other data are showing strength in the market for new homes, likely reflecting the boost from continued job growth in recent months,” says Michael Fratantoni, the MBA’s chief economist.

Meanwhile, the 30-year fixed-rate mortgage declined slightly last week to 4.18 percent from 4.19 percent the week prior, the MBA reports.

Source: “Weekly Mortgage Applications Jump Unexpectedly,” CNBC (Nov. 19, 2014)

Real Estate Predictions for 2015

November 18 2014

Expect the home-purchase market to strengthen along with the economy in 2015, according to Freddie Mac’s U.S. Economic and Housing Market Outlook for November.

“The good news for 2015 is that the U.S. economy appears well-poised to sustain about a 3 percent growth rate in 2015 — only the second year in the past decade with growth at that pace or better,” says Frank Nothaft, Freddie Mac’s chief economist. “Governmental fiscal drag has turned into fiscal stimulus; lower energy costs support consumer spending and business investment; further easing of credit conditions for business and real estate lending support commerce and development; and consumers are more upbeat and businesses are more confident, all of which portend faster economic growth in 2015. And with that, the economy will produce more and better-paying jobs, providing the financial wherewithal to support household formations and housing activity.”

Freddie Mac economists have made 5 projections in housing for 2015 at: Freddie Mac

 

 

Mortgage Rates Still Near Yearly Lows

November 14 2014

The 30-year fixed-rate mortgage is hovering around 4 percent. This has been keeping borrowing costs low for refinancers and home buyers for the last few weeks, Freddie Mac reports in its weekly mortgage market survey.

Freddie Mac reported the following national averages for the week ending Nov. 13:

  • 30-year fixed-rate mortgages averaged 4.01 percent, with an average 0.5 point, dropping from last week’s 4.02 percent. A year ago, 30-year rates averaged 4.35 percent.
  • 15-year fixed-rate mortgages averaged 3.2 percent, with an average 0.5 point, dropping from last week’s 3.21 percent average. Last year at this time, 15-year rates averaged 3.35 percent.
  • 5-year hybrid adjustable-rate mortgages averaged 3.02 percent, with an average 0.5. point, rising from last week’s 2.97 percent average. A year ago, 5-year ARMs averaged 3.01 percent.

Source: Freddie Mac

Home Renters Face ‘Affordability Crisis’

November 10 2014

With increased competition for units, rents are shooting up, and the increases are biting renters’ wallets as they find themselves increasingly getting priced out of the market, with wages failing to keep pace.

Nationwide rents have risen about 6 percent from a year ago, due to rising demand and still-limited supply, CNBC reports. Renters in many areas are paying more than 30 percent of their wages on a two-bedroom rental, according to an analysis by Trulia. Financial experts often recommend spending no more than 30 percent of wages on housing expenses (mortgage interest, principal, taxes, insurance).

Rental demand is strong and likely will remain so for the foreseeable future, analysts note. Apartment vacancies rose slightly in the third quarter for the first time in four-and-a-half years, but was mostly attributed to more rental supply coming on the market, according to Reis analytics firm.

“Units brought online during tight market environments have a tendency to actually push rents upward, not downward,” says Ryan Severino, economist at Reis, told CNBC. “So landlords should still be able to push asking rent increases on to their tenants.”

Source: “Rents Skyrocket Well Beyond Wages,” CNBC (Nov. 6, 2014)

Mortgage Rates Push Back Above 4%

November 7 2014

For the second consecutive week, average fixed-rate mortgages inched higher, taking the 30-year fixed-rate mortgage back above 4 percent for the first time in three weeks, Freddie Mac reports in its weekly mortgage market survey.

Freddie Mac reports the national averages for the week ending Nov. 6:

  • 30-year fixed-rate mortgages: averaged 4.02 percent, with an average 0.5 point, rising from last week’s 3.98 percent average. Last year at this time, 30-year rates averaged 4.16 percent.
  • 15-year fixed-rate mortgages: averaged 3.21 percent, with an average 0.5 point, rising from last week’s 3.13 percent average. A year ago, 15-year rates averaged 3.27 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.97 percent, with an average 0.5 point, increasing from last week’s 2.94 percent average. Last year at this time, 5-year ARMs averaged 2.96 percent.

Source: Freddie Mac

7.4M Home Owners Lose Out by Not Refinancing

November 4 2014

Recent reductions in the 30-year fixed-rate mortgage could net the population of borrowers big savings if they would refinance, according to Black Knight Financial Services’ latest Mortgage Monitor Report.

“Before the most recent reductions in the average 30-year mortgage interest rate, approximately 6 million borrowers met broad-based ‘refinancibility’ criteria,” says Trey Barnes, Black Knight’s senior vice president of Loan Data Products. “These criteria assume loan-to-value ratios of 80 percent or below, good credit, non-delinquent loan status, and current interest rates high enough that borrowers have an incentive to refinance. In light of where rates are today, and looking at borrowers with current notes at 4.5 percent and above, that population has now swelled to 7.4 million — almost a 25 percent increase. This is a relatively conservative assessment, though, as those with current rates of 4.25 percent to 4.5 percent could arguably benefit from refinancing as well. That group adds another 1.7 million borrowers to the population.”

A separate study by the National Bureau of Economic Research found in an analysis of 1 million fixed-rate mortgages that 20 percent of Americans who failed to refinance could have saved more than $45,000 in payments over the life of their loan. At the time of the study, average interest rates were around 4.3 percent. In recent weeks, the 30-year fixed-rate mortgage dipped below 4 percent, sinking to the lowest levels in more than a year, according to Freddie Mac. However, some home owners are struggling to refinance as their home values continue to recover.

Source: Black Knight Financial Services

Mortgage Rates Up, Still Below 4% Sweet Spot

October 31 2014

Average fixed-rate mortgages inched up from last week’s lowest rates of the year but are still below historical lows, Freddie Mac reports in its weekly mortgage market survey.

Freddie Mac reports the following average mortgage rates for the week ending Oct. 30:

  • 30-year fixed-rate mortgages: averaged 3.98 percent, with an average 0.5 point, rising from last week’s 3.92 percent average. Last year at this time, 30-year rates averaged 4.10 percent.
  • 15-year fixed-rate mortgages: averaged 3.13 percent, with an average 0.5 point, rising from last week’s 3.08 percent. A year ago, 15-year rates averaged 3.20 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.94 percent, with an average 0.5 point, rising from last week’s 2.91 percent average. Last year at this time, 5-year ARMs averaged 2.96 percent.

Source: Freddie Mac

Home Buyers in No Rush to Snag Low Interest Rates

October 29 2014

Mortgage rates continue to hover at yearly lows, but home buyers aren’t flocking to lock in the rates. Applications for mortgages dropped 6.6 percent last week for both home purchases and refinances, the Mortgage Bankers Association report.

Broken out, refinancing applications dropped 7.4 percent last week, while applications for home purchases, viewed as a gauge of future home sales, continued its drop, falling 5 percent last week. Last week, home purchase applications had fallen by another 5 percent and were about 9 percent from year-ago levels, the MBA reported.

Meanwhile, the 30-year fixed-rate mortgage continues to stay low by historical standards. The average rate nationwide was 4.13 percent week, up 3 basis points from 4.10 percent the week prior, according to the MBA’s survey, which reflects about 75 percent of the U.S. retail residential mortgage application market.

Source: “U.S. Mortgage Applications Fall in Latest Week as Rates Rise: MBA,” Reuters (Oct. 29, 2014)

Rates Haven’t Been This Low Since 2013

October 24 2014

The 30-year fixed-rate mortgage took another dip this week, staying below the 4 percent threshold and keeping borrowing costs at the lowest rate in more than a year. It marks the fifth consecutive week that mortgage rates decreased.

Freddie Mac reports the following national averages for the week ending Oct. 23:

  • 30-year fixed-rate mortgages: averaged 3.92 percent, with an average 0.5 point, reaching a new low for the year and dropping from last week’s 3.97 percent. Last year at this time, 30-year rates averaged 4.13 percent.
  • 15-year fixed-rate mortgages: averaged 3.08 percent, with an average 0.5 point, dropping from last week’s 3.18 percent average. A year ago, 15-year rates averaged 3.24 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.91 percent, with an average 0.5 point, dropping from last week’s 2.92 percent average. Last year at this time, 5-year ARMs averaged 3 percent.

Source: Freddie Mac