mortgage rates

Looking Back And Looking Ahead : March 24, 2008

March 24, 2008

Conforming mortgage rates edged slightly lower for the second week in a row. Mortgage rates fell for two main reasons: The Federal Reserve offered fiscal support for troubled mortgage-backed securities A government group gave Fannie Mae and Freddie Mac permission to lend more of money to American homeowners These two actions combined to make mortgage-backed securities safer […]

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Re-Approve Your Pre-Approval

March 20, 2008

Since December 2007, mortgage lending guidelines have changed very quickly and often without notice. Some of the more well-known changes include: Broad restrictions on stated income home loans Broad restrictions on 100 percent financing “Risk-based fees” for credit scores under 740 Some of the lesser-known restrictions relate to property type and occupancy status as well as […]

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Making English Out Of Fed-Speak (March 2008 Edition)

March 19, 2008

The Fed lowered the Fed Funds Rate by 0.750% to 2.250% yesterday. Because it is tied to the Fed Funds Rate, Prime Rate also fell by 0.750% yesterday.  Prime Rate is now to 5.250%. Holders of home equity lines of credit and credit card debt benefited from the change and will see lower interest costs in […]

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Expect A Fed Funds Rate Cut This Afternoon

March 18, 2008

The Federal Open Market Committee meets today and will issue a press release in addition to cutting the Fed Funds Rate at 2:15 P.M. ET. The verbiage of the press release will be as widely watched as the rate cut itself because markets are curious about how far the Federal Reserve will go to lessen […]

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Looking Back And Looking Ahead : March 17, 2008

March 17, 2008

Mortgage rates fell last week on growing evidence of a recession, but far fewer Americans were eligible to take advantage. Mortgage lenders continue to reduce product menus and that is leaving homeowners with fewer mortgage financing options than before. As an added hurdle, Fannie Mae and Freddie Mac recently added “risk-based” fees on all conforming […]

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The Difference A Zip Code Can Make

March 14, 2008

There is no such thing as a “national real estate market”. Real estate is local. We know this is true because even cities don’t have their own real estate market. This chart shows how home prices have diverged across adjacent zip codes over the last 12 months. Some influencing factors: School systems Infrastructure Proximity Supply […]

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Mortgage Rates Fell But You May Have A Higher Rate To Pay

March 13, 2008

When mortgages began to sour last Fall, Fannie Mae and Freddie Mac instituted “loan-level pricing adjustments”. The concept is basic: For mortgage applicants with less-than-ideal credit profiles, mortgage pricing is adjusted to compensate for the added risks. It’s still a conforming loan, but with adjustments. Effective March 6, though, Fannie and Freddie’s definition of “high-risk” […]

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Go Beyond The Headlines: Unemployment Data

March 12, 2008

The Unemployment Rate fell to 4.8 percent in February. This is 0.1% lower than from January and that’s confusing to a lot of people; it’s been highly publicized that U.S. companies shed 63,000 jobs last month. Americans are losing jobs at the same time that the Unemployment Rate is falling.  Seem strange? Well, it’s possible […]

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How Gas Prices Are Impacting Mortgage Rates

March 11, 2008

Gasoline prices reached an all-time, inflation-adjusted high yesterday, averaging $3.23 per gallon nationwide. According to GasBuddy.com, this represents a 25% increase in the last 12 months. Higher gas prices are leaving Americans with fewer discretionary dollars to spend and that is playing a role in the U.S. economy’s slowdown.  It’s one reason why mortgage rates have […]

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Looking Back And Looking Ahead : March 10, 2008

March 10, 2008

Between Tuesday and Thursday, mortgage rates rose as much as during any three-day period in recent memory before settling back a bit on Friday’s jobs data. Fourteen speeches from members of the Federal Reserve were partly to blame for the mortgage rate chaos, but several other factors played a part, too. One of the biggest […]

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How Picking Up The Telephone Can Reduce The National Foreclosure Rate

March 7, 2008

“Foreclosure” is the legal process by which a bank repossesses a home from a borrower and, according to RealtyTrac, 1 out of every 100 homes were in some stage of the foreclosure process in 2007. This figure is astounding because foreclosure is expensive to both homeowners and banks.  Both parties have an interest in avoiding […]

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The Right Question: “How Much Do I Want To Spend On Housing Each Month?”

March 6, 2008

One of the most popular questions that home buyers ask real estate and mortgage professionals is “How much home can I afford?” It’s a normal question to ask, but it’s not the most effective way to plan your finances. Banks will almost always approve you for a home loan in excess of your household budget. […]

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Recession or Inflation? Even Fed Members Don’t Know For Sure.

March 5, 2008

With Friday’s jobs report looming, mortgage markets are especially skittish about whether the economy is in a recession, or facing inflation. Four Fed speakers Tuesday did little to quell the debate: 9:00 A.M.: Fed Chairman Bernanke stayed on message that foreclosures and falling home values are dragging down the economy. 10:00 A.M.: Fed Vice Chairman […]

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What High Oil Prices Mean To Mortgage Rates

March 4, 2008

After briefly exceeding its all-time high, oil closed Monday at $102.45. Rising energy costs can lead to inflation because American Business eventually passes on its higher costs to American Consumers. When consumers have to spend more money for the same amount of product, it’s called “inflation”. Another way to look at inflation is like an erosion […]

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Looking Back And Looking Ahead : March 3, 2008

March 3, 2008

Mortgage rates edged lower last week but it was another wild ride.  Market players continue to deal with competing economic forecasts. When the economy shows signs of brightness — like it did Monday and Tuesday — mortgage rates tend to rise. This is because markets are currently equating growth with inflation and inflation pressures mortgage […]

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Making Your Home Sell Faster With Psychology

February 29, 2008

When selling a home, understanding a little bit about home buyer psychology can help you move your home more quickly. After all, what people perceive helps define how they act. A recent article from RealEstateJournal.com listed techniques home sellers can use to attract more offers from buyers. The tips included: Number Play: $299,999 seems far […]

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As The Fed Funds Rate Falls, 30-Year Fixed Mortgages Rise

February 28, 2008

Federal Reserve Chairman Ben Bernanke testified to Congress Wednesday, alluded to further rate cuts to support an ailing U.S. economy. Already, the Federal Reserve has lowered the Fed Funds Rate by 2.250% since September 2007. The graph at right comes from the Wall Street Journal and it highlights a very important correlation between the Fed […]

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How Is Housing Doing? It Depends Who You Ask.

February 27, 2008

Yesterday, the Office of Federal Housing Enterprise Oversight released its fourth-quarter housing data. The OFHEO report color-coded each state according to its annual price changes.  The states shown in red lost value, and everyone else gained.  Overall, the OFHEO measured a 0.8% national increase. Also hitting the wires yesterday was the Case-Shiller Home Price Index. This report […]

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Real Estate Term: Earnest Money

February 26, 2008

When a buyer and seller reach agreement on a home sale, the buyer typically puts a small amount of money into a trust account. This up-front deposit is more commonly known as “earnest money”. A sales contract’s earnest money requirement will vary from contract to contract.  It can be as high as 10 percent of […]

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Looking Back And Looking Ahead : February 25, 2008

February 25, 2008

It’s a big week for mortgage markets (again) and that should cause rates to fluctuate wildly (again). The volatility we’ve seen since December has not been for the faint of heart.  Even this past Friday, as mortgage rates were poised to end the week lower, a late-afternoon stock market rally reversed it. In the last […]

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