Weekly Recap (11/15/10-11/20/10)by Tim Manni
There are millions of homeowners out there who have already refinanced their mortgages. Some are even considering refinancing for a second time. However, it may surprise you that there are still many borrowers out there who haven’t refinanced. Here are five reasons why:
1. Small Loan Amount
With a small loan amount, it can be hard to achieve enough savings by refinancing to make the transaction worthwhile…
Now more than ever, credit scores are especially important to mortgage borrowers. If you’re a mortgage borrower with a poor credit score, your financing options are vastly limited. Besides the FHA, which still has financing available for borrowers with below-prime scores, the private market has shown little interest for borrowers without pristine credit.
The good news is that there are ways you can improve your credit before you apply for a home loan…
“If you want successful modifications, you have to do principal reductions.”
-Laurie Goodman, Senior Managing Director of ASG
How many times have we heard that before? To put it simply, “a lot.”
Principal reductions are a very gray area in this era of loan modifications, especially when it comes to Fannie Mae and Freddi Mac. While neither the public or private market has yet to claim much success in terms of loan modifications, statistics are starting to sway in the favor of private-market modifications, rather than HAMP modifications…
Today was not a good day for the housing market. A group of negative reports revealed a market that still hasn’t found much solid footing at all.
Mortgage rates are trending upward: The 30-year Conforming fixed rate has risen appreciably in the last few days. According to HSH.com, the 30-year fixed ended the day at 4.54 percent, unchanged from yesterday.
Mortgage applications suffer: Both purchase and refinance applications dropped for the week ending November 12, according to the Mortgage Bankers Association. Purchase apps were down 14.4 percent from the week prior, and refinance apps fell by 16.5 percent, “the lowest level observed since July of this year,” writes Jann Swanson of Mortgage News Daily…
New York Fed President Bill Dudley gave an interview recently with CNBC in which he defended some of the most common criticisms of the Fed’s QE2 program.
Criticism #1: Quantitative Easing will cause inflation:
Dudley contended that new tools the Fed has put in place to withdraw excess cash from the banking system when the economy rebounds would head off inflation, including paying higher interest rates on the excess reserves banks are now holding. “We are very confident of our ability to exit when the time comes, in terms of the tools. We also are very confident of our will to exit,” Dudley said…
Today, mortgage rates for the 30-year Conforming fixed-rate mortgages increased by 0.16 percent from Friday, producing the highest daily rate since September 20, 2010.
The Influential 10-yr treasury increased to 2.96 percent, marking the highest daily average since August…
The second round of the Federal Reserve’s Quantitative Easing (QE2) program kicked into gear last week. So far, it’s not producing the desired effects (at least in terms of influencing interest rates downward). Before we get too ahead of ourselves, allow me to reiterate that the program has just gotten underway. Let’s allow the program to get going before we draw any concrete conclusions…
That said, what we do know for sure is that the effects of this program are largely unknown. For the most part, QE2 is an unprecedented undertaking without knowable outcomes.