HSH in the Newsby Tim Manni
Don’t forget to check in on our “HSH in the News 2009” page located at the top-right section of the blog. News outlets across the country seek to quote not only our mortgage rates and statistics, but they often seek our commentary and opinions on the latest financial and consumer news items.
Here’s a look at some of our more-recent mentions:
“Fannie, Freddie Warn on More Losses,” a Wall Street Journal article quoting HSH by Nick Timiraos:
Private mortgage insurance is required for any home loan with less than a 20% down payment, and the policies typically cover 12% to 35% of losses in the event of a default, according to HSH Associates, a financial publisher. Mortgage insurers have been forced to pay up as loan defaults escalate.
“How Struggling Homeowners Can Stay in Their Homes As Renters,” a U.S. News & World Report article quoting HSH by Luke Mullins:
The program is designed to soften the blow that foreclosures can have on families and neighborhoods by giving borrowers time to plot their next step, says Keith Gumbinger of HSH.com.
Gumbinger says the program reflects the extreme nature of the housing crisis. “Extraordinary times call for extraordinary measures,” he says. “I can’t imagine in their wildest dreams that Fannie and Freddie wanted to be landlords.”
“What the Fed’s Latest Move Means for Mortgages,” a SmartMoney.com article quoting HSH by Aleksandra Todorova:
Still, interest rates will likely remain low through at least the end of the year, says Keith Gumbinger, a vice president at mortgage-rate tracking firm HSH Associates. (As of Oct. 30, the average 30-year conforming loan was at 5.16%, according to HSH. Jumbo loans averaged 5.99%.) “With the Fed’s program expiring, with hopeful upward momentum in economic growth and a bit of job growth, it’s reasonable to plan for higher interest rates in later in the year,” Gumbinger says. He expects rates on 30-year fixed conforming mortgages to go up to 6%.
Meanwhile, homeowners with adjustable-rate mortgages, or ARMs, appear to have little reason to worry for now: Unlike 30-year fixed mortgages, ARMs are pegged to short-term rates, which the Fed has indicated will remain at near zero for the time being. “If you have an ARM, the indicators which govern your adjustment are likely to remain low for the next year,” Gumbinger says. The average 5/1 ARM was at 4.39% for the week ending Oct. 30; jumbo 5/1 ARMs averaged 5.12%.
“Home equity loan market remains very tight,” an LA Times article quoting HSH by E. Scott Reckard:
“The days of lenders falling all over themselves to help you empty the equity out of your home aren’t coming back any time soon,” said Keith Gumbinger, vice president at loan data tracker HSH Associates.
Even for homeowners with plenty of home equity still available, “access to it is harder to come by,” Gumbinger said. “You need to be a much higher-quality borrower now. And if you can get it, the terms are going to be a lot less attractive.”