Loan Mitigation Advocates » Mortgage News

High Balance Loan Limits Set to Expire

Adam Golden — Wed, 22 Jun 2011 21:27:56 +0000

On September 30, 2011, the high balance loan limits are set to expire. Currently, for “high cost” areas, the high balance loan limit is set at $729,750. This limit was originally established as part of the Economic Stimulus package of 2008. This amount will be adjusted down to $625,500 for high cost areas. This reduction in the high balance loan limit could have dramatic impacts. Loans could be subject to tighter credit conditions.

For one, the interest rate you are securing will most likely be at a higher amount. For example, if you are shopping for a home and have determined that you will need a loan amount between $625,500 and $729,950 that loan will now be secured at a higher interest rate. As of this article, a jumbo loan rate is about ½% higher than a conforming 30 year fixed rate according to Bankrate.com.

Another impact is that a loan over the $625,500 mark will require a down payment of at least 20%. The option to put less than 20% down for loans between $625,500 and $729,950 will be no longer.

Both factors could mean weaker demand for homes in the high cost markets. This eventually could lead to downward pressure on prices.

Mortgage Rate Update Ending 11/18/10

Adam Golden — Thu, 18 Nov 2010 16:10:47 +0000

Bankrate.com conducts a weekly national survey on the interest rates for the five most common consumer banking products. Here’s the outcome for 11/18/2010:

30 Year Fixed Rate: 4.62 percent
15 Year Fixed Rate: 4.02 percent
5/1 ARM (Adjustable): 3.71 percent

According to the Mortgage Bankers Association:

The financial markets globally have been impacted by a highly negative response globally to the Federal Reserve’s “QE2″ program. This program is designed to pump money into the American banking system. Earlier this week, global markets also were rocked by a financial crisis in Ireland.

Although the U.S. housing market remains in a slump, the National Association of Realtors said this week that half of the metro areas it tracks showed modest home price increases in the third quarter. However, the national median price for existing single-family homes was little changed, dropping to $177,900 in the third quarter compared to $178,200 in the third quarter of 2009.

Mortgage Rate Update Ending 8/19/2010

Adam Golden — Mon, 23 Aug 2010 21:54:16 +0000

Bankrate.com conducts a weekly national survey on the interest rates for the five most common consumer banking products. Here’s the outcome for 8/19/2010:

30 Year Fixed Rate: 4.63 percent
30 Year Fixed Rate Jumbo: 5.26 percent
15 Year Fixed Rate: 4.11 percent
5/1 ARM (Adjustable): 3.95 percent
1 Year ARM (Adjustable): 4.80 percent

According to the Mortgage Bankers Association:

Mortgage applications rose 13 percent when compared to a week earlier
Refinance applications shot up 17.1 percent when compared to a week earlier
Applications for new purchases fell 3.4 percent

Mortgage Rate Update Ending 05/06/10

Adam Golden — Mon, 10 May 2010 23:45:00 +0000

Bankrate.com conducts a weekly national survey on the interest rates for the five most common consumer banking products. Here’s this week’s outcome:

30 Year Fixed Rate: 5.12 percent
30 Year Fixed Rate Jumbo: 5.94 percent
15 Year Fixed Rate: 4.49 percent
5/1 ARM (Adjustable): 4.31 percent
1 Year ARM (Adjustable): 4.91 percent

Mortgage applications rose.

Applications for new purchases jumped.

Refinancing activity slipped.

Pending home sales rose.

Mortgage Rate Update Ending 01/20/10

Adam Golden — Fri, 22 Jan 2010 03:06:26 +0000

Bankrate.com conducts a weekly national survey on the interest rates for the five most common consumer banking products. Here’s this week’s outcome:

30 Year Fixed Rate: 5.15 percent
30 Year Fixed Rate Jumbo: 5.93 percent
15 Year Fixed Rate: 4.56 percent
5/1 ARM (Adjustable): 4.63 percent
1 Year ARM (Adjustable): 4.92 percent

Mortgage applications rose compared to a week earlier, according to the Mortgage Bankers Association.

Refinancing activity surged and applications for new home purchases increased.

Mortgage Rate Update Ending 08/19/09

Adam Golden — Wed, 26 Aug 2009 17:44:49 +0000

Bankrate.com conducts a weekly national survey on the interest rates for the five most common consumer banking products. Here’s this week’s outcome:

30 Year Fixed Rate: 5.52 percent
30 Year Fixed Rate Jumbo: 6.44 percent
15 Year Fixed Rate: 4.84 percent
5/1 ARM (Adjustable): 4.86 percent
1 Year ARM (Adjustable): 5.19 percent

Mortgage applications were higher for the week for new purchases and resale. Refinancing activity also rose, according to the Mortgage Bankers Association.

According to RealtyTrac, foreclosure activity was up 7 percent during July. One in every 355 U.S. housing units received a foreclosure notice during the month.

Mortgage Rate Update Ending 07/01/09

Adam Golden — Mon, 06 Jul 2009 04:33:52 +0000

Bankrate.com conducts a weekly national survey on the interest rates for the five most common consumer banking products. Here’s this week’s outcome:

30 Year Fixed Rate: 5.7 percent
30 Year Fixed Rate Jumbo: 6.91 percent
15 Year Fixed Rate: 5.07 percent
5/1 ARM (Adjustable): 5.17 percent
1 Year ARM (Adjustable): 5.17 percent

Additional news centered around the government’s plan to expand the number of people who will be eligible for mortgage refinancing. Under the Making Home Affordable plan, homeowners will now be allowed to refinance for up to 125 percent of their homes’ values (previously set at 105 percent of value).

Mortgage Rate Update Ending 05/06/09

Adam Golden — Thu, 07 May 2009 18:23:27 +0000

Bankrate.com conducts a weekly national survey on the interest rates for the five most common consumer banking products. Here’s this week’s outcome:

30 Year Fixed Rate: 5.27 percent
30 Year Fixed Rate Jumbo: 6.68 percent
15 Year Fixed Rate: 4.78 percent
5/1 ARM (Adjustable): 5.07 percent
1 Year ARM (Adjustable): 5 percent

Mortgage application activity rose slightly for the week ending May 1 according to the Mortgage Bankers Association. Refinancing activity edged up 1.2 percent while applications for new purchase rose 5 percent. Pending home sales for March rose 3.2 percent, according the National Association of Realtors.

Mortgage Rate Update Ending 02/25/09

Adam Golden — Tue, 03 Mar 2009 17:43:57 +0000

Bankrate.com conducts a weekly national survey on the interest rates for the five most common consumer banking products. Here’s this week’s outcome:

30 Year Fixed Rate: 5.41 percent
30 Year Fixed Rate Jumbo: 6.87 percent
15 Year Fixed Rate: 4.93 percent
5/1 ARM (Adjustable): 5.4 percent
1 Year ARM (Adjustable): 5.58 percent

Mortgage loan application and refinancing activity fell, while applications for new purchases dropped 2.6 percent. Home prices fell 18.2 percent in the final quarter of 2008. This is compared with the same period a year earlier.

Mortgage Rate Update Ending 01/14/09

Adam Golden — Sun, 18 Jan 2009 17:08:16 +0000

Bankrate.com conducts a weekly national survey on the interest rates for the five most common consumer banking products. Here’s this week’s outcome:

30 Year Fixed Rate: 5.28 percent with points averaging: 0.42
30 Year Fixed Rate Jumbo: 7.07 percent
15 Year Fixed Rate: 4.89 percent
5/1 ARM (Adjustable): 5.51 percent
1 Year ARM (Adjustable): 6.13 percent

Fixed-rate mortgages continued their decent toward record lows this week. Refinancing activity was at levels similar to those found back in mid 2003. Activity increased 25.6% from the previous week.

Foreclosure postponements for Fannie Mae and Freddie Mac borrowers have been extended for an additional three weeks. The postponement should be valid through January 31.

As the economy worsens, more foreclosures and short sales will continue to drag home prices down. The main culprits creating a worse housing condition are the poor economy and subsequent rising unemployment.