Mortgage Rates continue to fall

MCLEAN, Va., Jan. 12, 2012 /PRNewswire/ – Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates easing to new all-time record lows for all products covered in the survey helping to keep homebuyer affordability high. The average for the 30-year fixed mortgage rate has been below 4.00 percent for six consecutive weeks.

News Facts

• 30-year fixed-rate mortgage (FRM) averaged 3.89 percent with an average 0.7 point for the week ending January 12, 2012, down from last week when it averaged 3.91 percent. Last year at this time, the 30-year FRM averaged 4.71 percent. 
• 15-year FRM this week averaged 3.16 percent with an average 0.8 point, down from last week when it averaged 3.23 percent. A year ago at this time, the 15-year FRM averaged 4.08 percent. 
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.82 percent this week, with an average 0.7 point, down from last week when it averaged 2.86 percent. A year ago, the 5-year ARM averaged 3.72 percent.
• 1-year Treasury-indexed ARM averaged 2.76 percent this week with an average 0.6 point, down from last week when it averaged 2.80 percent. At this time last year, the 1-year ARM averaged 3.23 percent.  

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Interview with Craig Snyder ERA Mortgage about FHA loans

 

November 16, 2011

 

ERA Mortgage Craig Snyder and Rick Knight about FHA loans.

Rick ask Craig, “Can you give us an update on FHA loans with ERA Mortgage.  Like what kind of down payments, credit scores etc that are needed?”

Craig reply’s,”Standard would be 3.5% for the down payment.  The only exception would be a HUD REO property only requires $100 down payment.  Also, minimum eligible credit score is 600.  ”

Rick,”  And how about the loan limits?”

Craig,” Current loan limits vary by county, but most in our area around Charlotte are at $271,000.”

Rick,”  What are the qualifying rations?”

Craig, “Standard are 31% on the front ration and 42% on the back ration.  So, the front ration is the mortgage payment, taxes and all insurances divded by gross monthly eligible income.  The back is the same payment plus all monthly debt divided by gross monthly income.”  Adds Craig, “ Debt ratios can be expanded based on customers qualifications.  So they can go higher somtimes.  Sometimes as high as 50%.  ERA Mortgage can loan to borrowers with no established credit or limited credit if they qualify.”

Rick,”  Thanks Craig.

 

If you would like more information about qualifying for an FHA home loan or conventional financing please contact Craig Snyder ERA Mortgage at 704 280 6868 or call ERA Knight Realty 1-888-892-7373 to get started.

Mortgage Interest Rates September 2011

By NICK TIMIRAOS of the WSJ

The Federal Reserve’s decision to reinvest payments from mortgages in its portfolio into government-backed mortgage securities signals a renewed effort to help consumers take advantage of interest rates that have fallen to their lowest levels in decades.

Wednesday’s announcement follows recent talks between the White House and federal regulators to ease hurdles to refinancing for borrowers whose loans are backed by Fannie Mae and Freddie Mac. The Fed said its action “would help support conditions in mortgage markets and contribute to a stronger economic recovery.” The central bank hopes that by restraining the supply of mortgage-backed securities in the hands of private investors, it will support their price and thus push down the yields, which could trickle through to borrowers in the form of lower mortgage rates.

A $1.25 trillion program of mortgage-backed securities purchases by the Fed, which ended in March 2010, is widely believed to have had that effect. Its holdings of those securities have since fallen to about $885 billion.

The Fed won’t increase its overall portfolio of mortgage bonds. Instead, it is simply taking the cash it gets when bonds in the existing portfolio mature and reinvesting it into other mortgage-backed securities.

“This is a way of saying, ‘We are going to also foster low mortgage rates, and if the market isn’t interested in buying them, well, we will buy them,’ ” said Keith Gumbinger, vice president at financial publisher HSH Associates.

In recent weeks, the prospect of a refinancing wave has sparked concerns that mortgage markets would face a glut of newly issued bonds, particularly as those held by the Federal Reserve are paid off. “Who’s going to buy all those mortgages if the Fed isn’t buying them?” said Jim Vogel, an analyst at FTN Financial. “There was that possibility of an oversupply.”

Housing market update

February Pending Home Sales Rise

Mar 28, 2011 ( www.realtor.org )

Lawrence Yun, NAR chief economist, says it’s important to look at the broader trend. “Month-to-month movements can be instructive, but in this uneven recovery it’s important to look at the longer term performance,” he said. “Pending home sales have trended up very nicely since bottoming out last June, even with periodic monthly declines. Contract activity is now 20 percent above the low point immediately following expiration of the home buyer tax credit.”

Yun notes there could have been some weather impact in the February data. “All of the regions saw gains except for the Northeast, where unusually bad winter weather may have curtailed some shopping and contract activity.”

“We may not see notable gains in existing-home sales in the near term, but they’re expected to rise 5 to 10 percent this year with the economic recovery, job creation and excellent affordability conditions providing confidence to buyers who’ve been on the sidelines”.

RATEFORECAST

Mar 31, 2011 (Bankrate.com)

Will rates rise or remain relatively unchanged this week?

Industry experts and analysts provide their insights.

· 6% of respondents expect rates to fall in the coming weeks

· 59% predict a further increase in mortgage rates while the remaining

· 35% forecast that mortgage rates will remain more or less unchanged

ERA Mortgage 2nd Home Financing is Available

ERA Mortgage offers 2nd home financing for ERA Knight Realty clients. With prices down, we think that 2011 will see an increase in 2nd home purchases for Lake Norman. Homes and condos on the Lake can be financed through ERA Mortgage.

 

visit www.eramortgage.com