Mortgage Rates: Best Execution Improves to 5.00%

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Posted To: Mortgage Rate Watch

Mortgage rates have spent the better part of a month teetering on a ledge. At risk was a phenomenon we describe as "snowball selling". The end result would have been another 0.25 to 0.375% jump in home loan borrowing costs....the third spike in as many months. WHAT IS SNOWBALL SELLING? Mortgage rates have rallied in six of the last 7 sessions though and we've slowly backed away from the ledge. To illustrate the recent behavior of mortgage rates, we offer the chart below. It graphs the average origination closing costs associated with specific mortgage note rates as quoted by the five major mortgage lenders. If the note rate line is moving up, the closing costs associated with that rate quote are rising. In December, closing costs rose rapidly. Mortgage rates did improve from those levels, but...(read more)

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Source: www.mortgagenewsdaily.com

- For more real estate news visit our website at http://www.AzHomeHelp.com

Public Perception of Originator Compensation Changes; Details on Redwood Non-Agency MBS Deal; Several Investor Updates;

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Posted To: Pipeline Press

What is the public hearing and seeing regarding the April Fool's Day changes? "Starting April 1, under a new compensation rule from the Federal Reserve, borrowers who get their mortgages through brokers will most likely pay less for their services and must be offered the lowest possible interest rate and fees for which they qualify. The new rule also affects those dealing with small banks and credit unions, which typically do not fund loans from their own resources. But most banks and other direct lenders, including the few mortgage companies that function like banks, are exempt." SOUNDS MISLEADING! Details of the latest Redwood Trust March 1 st deal are emerging . The $290 million residential MBS are backed by 303 loans, roughly 2/3 from First Republic Bank and the rest by PHH Mortgage . The...(read more)

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Source: www.mortgagenewsdaily.com

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Compensation Discussions Around the Country; QRM, MERS updates

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Posted To: Pipeline Press

There's a saying, "We are born naked, wet, and hungry. And then things get worse." But perhaps, just perhaps, smaller mortgage brokers and bankers won't see things get worse with the Qualified Residential Mortgage ("QRM") plans . Dodd-Frank requires lenders to retain 5% of the credit risk of any mortgages closed outside of the guidelines - but what are the guidelines? Will it be based on agency - effectively killing the jumbo/non-agency market? What if the agency guidelines go away? Will it be based on LTV, cutting into FHA or the MI company business share? Anyway, the issue has been somewhat quiet, but recently the Senate Banking Committee heard from FDIC Chairman Sheila Bair, and she told members that regulators will soon release its QRM that will determine how much risk loan originators...(read more)

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Source: www.mortgagenewsdaily.com

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Refinancing Borrowers Shun ARMs in Q4. Opt for Shorter Loan Terms

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Posted To: MND NewsWire

Americans are increasingly turning away from variable rate mortgage products when refinancing according to the Quarterly Product Transition Report issued by Freddie Mac. An increasing share of refinancing borrowers also chose to shorten their loan terms during the fourth quarter. In the fourth quarter of 2010, fixed-rate mortgages (FRM) accounted for more than 95 percent of all loans used for refinance. Frank Nothaft, Freddie Mac vice president and chief economist commented that "Fixed mortgage rates continued to slide lower during the first part of the fourth quarter, reaching 4.17 percent for the 30-year mortgage in mid-November in Freddie Mac's Primary Mortgage Market Survey® and the lowest fixed rates since the early 1950s. It's no wonder borrowers are attracted to fixed-rate loans...(read more)

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Source: www.mortgagenewsdaily.com

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Mortgage Rates: Nearly Unchanged Today

Hot news from AZ Home Help:

Posted To: Mortgage Rate Watch

Although costs inched slightly higher today, the overall picture of this week in mortgage rates was finalized today and it doesn't look too bad. In terms of costs, the secondary mortgage market is nearly one full percent higher than it was at the lowest points on Monday. The day was uneventful and not the most informative in terms of market-based events or volume. Losses looked more severe this morning, but by the end of the day, the secondary market had battled back to close out the week just slightly worse than yesterday's prices. CURRENT MARKET : The "Best Execution" conventional 30 year fixed mortgage rate is no longer split between 5.125% and 5.25%....it has fallen firmly to 5.125%. After today's gains, there's an opportunity at 4.875% for those who wish to buy...(read more)

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Source: www.mortgagenewsdaily.com

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MBA: Delinquency Rates Down, Some to Pre-Recession Levels

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Posted To: MND NewsWire

There was a lot of good news in the Fourth Quarter National Delinquency Study released by the Mortgage Bankers Association (MBA) Thursday. First, the overall, seasonally adjusted delinquency rate (which does not include loans in foreclosure) fell to 8.22 percent, a decrease of 91 basis points from a 9.13 percent rate in the third quarter and down 125 basis points from the same period in 2009. Jay Brinkmann, MBAs chief economist said that the non-seasonally adjusted rate showing a decrease of 46 basis points to 8.93 percent might be even better news. There is usually a sharp spike in the rate in the fourth quarter, perhaps because homeowner's budgets are impacted by the first home heating bills of the season. That the rate fell this time indicates that the downward movement may be real. Delinquencies...(read more)

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Source: www.mortgagenewsdaily.com

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Mortgage Rates: Back To Winning Ways, But Still Defensive

Hot news from AZ Home Help:

Posted To: Mortgage Rate Watch

A 3 day winning streak for mortgage rates ended yesterday, but in gentle fashion. This allowed us to keep our best execution 30-year fixed mortgage rate at 5.125%. Today, however, the secondary mortgage market was back to its gaining ways, actually ending up in even better shape than Tuesday evening. CURRENT MARKET : The "Best Execution" conventional 30 year fixed mortgage rate is no longer split between 5.125% and 5.25%....it has fallen firmly to 5.125%. After today's gains, there's an opportunity at 4.875% for those who wish to buy down their rate, as this will involve much higher closing costs than 5.125, but among the potential rates attainable with buy-downs, 4.875 is the best-execution among them. The upfront cost of permanently buying down your rate from 5.125% to 4...(read more)

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Source: www.mortgagenewsdaily.com

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