Category Archives: Mortgage Loan

Mortgage giant Freddie Mac reported a $5 billion net income for the second quarter of this year — the second-largest profit in its history — and says it will pay a dividend of $4.4 billion to the U.S. Treasury. So far, Freddie Mac has paid back $41 billion of what it owes to taxpayers. It still owes $30 billion more, and company officials say it hopes to continue paying that down this year.

It seems that move-up and luxury builders are less susceptible to the consequences of higher mortgage rates than an entry-level buyer would be, according to Sterne Agee analyst Jay McCanless. Repeat homebuyers should have equity already built up from their previous homes, reducing monthly payments and improving affordability.

Closing costs have climbed 6 percent in the past year, according to a new survey by Bankrate.com. On a $200,000 single-family loan, borrowers with great credit who are making a 20 percent down payment are paying $2,402, on average, in closing costs nationwide. But closing costs vary greatly from lender to lender as well as from state to state. The states with the highest average closing costs, according to Bankrate’s survey: Hawaii: $2,919 Alaska: $2,675 South Carolina: $2,658 California: $2,639 New Mexico: $2,566 Meanwhile, the states with the lowest averages […]

President Barack Obama is making it clear in his housing-focused economic speech today in Phoenix that he envisions the 30-year fixed-rate mortgage to be the centerpiece of any reformed mortgage system.

Mortgage rates ticked up this week but still remain relatively low in helping to support the ongoing housing recovery, which is providing a positive contribution to the overall economy, Freddie Mac says in its weekly mortgage market report. Mortgage rates pushed up slightly this week before the Federal Reserve made its announcement that it does not plan to stop it’s bond-buying program yet. The Fed has been purchasing $85 billion in bonds each month, which has helped curb mortgage rates, but fears over an end to that program has made […]

The Federal Reserve announced Wednesday that it will continue purchasing $85 billion in bonds each month — at least for now. The Fed’s bond-purchasing program has helped move mortgage rates to their lowest levels on record in recent months. However, the Fed has signaled that the program could likely come to an end soon, causing a shift upward in mortgage rates.

Commercial and multifamily mortgage origination volumes during the second quarter of 2013 rose 36% from the first quarter of 2013 and jumped 7% year-over-year, the Mortgage Bankers Association said. “Commercial and multifamily mortgage lending and borrowing continued to grow during the second quarter,” said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. “The apartment market continues to be the belle of the ball, with multifamily mortgage originations running 31% ahead of last year’s first half total. And after a slow start to the year, lending by life insurance […]

Rising mortgage rates are beginning to impact the housing market, as pending home sales declined in June after reaching the highest level in more than six years, according to the National Association of REALTORS®. The Pending Home Sales Index, a forward-looking indicator based on contract signings, fell 0.4 percent to 110.9 in June. That’s down from 111.3 in May but still 10.9 percent higher than June 2012. Mortgage interest rates began to rise in May, taking some of the momentum out of contract activity in June, said NAR chief economist […]

For years, the mortgage industry has been living off refinancings, which have often accounted for more than 70% of mortgage applications. Now the refi rage is fading, as rising rates make it harder to save money by replacing an old loan with a new one. But homeowners should not give up too quickly. Saving a little isn’t as good as saving a lot, but better than saving nothing. Those who can still refinance to trim their monthly payments would be wise to start hunting for a deal now at LTC […]

The high re-default rate on mortgages modified through the government’s Home Affordable Modification Program is mostly because of borrowers who received the smallest reduction in payments through the program, are still underwater on their loans, or have subprime credit scores, according to a new report by the Special Inspector General for the Troubled Asset Relief Program.