The Federal Reserve acknowledged last week what we’ve been championing for months: The economy is getting better.
While their assessment suggests that the growth needles have moved by just a touch, from “modest” to “moderate,” it was enough to spark a strong move in interest rates, and underlying Treasury yields moved considerably higher by last week’s end.
Below is an excerpt from HSH.com’s latest Market Trends newsletter, an examination of mortgage rates and the economic conditions that affect them. Be sure to sign up today.
In a perfect recovery, economic growth would come in bursts above levels needed to foment a self-sustaining recovery without extraordinary supports. That’s not been the case with this recovery, at least to date, but perhaps those days are approaching more quickly than previously expected.
As of last Friday, HSH.com reported that mortgage rates had once again dipped back to new record lows. The streak has continued into this week.
According to HSH.com’s latest Weekly Mortgage Rate Radar, rates on two of the most popular types of mortgages eased back even more, breaking new record low territory.
The White House is out with a new housing plan, but not everyone is thrilled. Speaker John Boehner (R-Ohio) thinks the program is history, bad history.
“We’ve done this at least four times where there’s a new government program to help homeowners who have trouble with their mortgages,” said Boehner.
The president addressed the nation today from Falls Church, Va., to announce a widespread housing effort that tackles everything from refinancing non-Fannie and Freddie borrowers to a homeowners “bill of rights.”
Is this proposed refinance plan–that can potentially save you $3,000 a year–a game changer or a pipe dream? At the moment, I—along with many others—am leaning towards the latter. Why? Plain and simple: it requires Congressional approval.
On Tuesday, blog.HSH.com reader Diana wrote in with the following comment:
I have perfect credit, have never been late on a payment, have a low debt-to-income ratio, but I can’t qualify for HARP because I currently have mortgage insurance. WTF? Is this a way to get people to buy mortgage insurance? I am so confused by this. I also heard there is going to be a HARP 3.
If you were among the many watching the president’s State of the Union address last evening, chances are you didn’t even realize President Obama hinted at a new refinance plan. In fact, the word “refinance” didn’t even appear in the president’s speech. The term “refinancing” was only mentioned once.
“And that’s why I’m sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage, by refinancing at historically low rates,” said the president. “No more red tape. No more runaround from the banks. A small fee on the largest financial institutions will ensure that it won’t add to the deficit and will give those banks that were rescued by taxpayers a chance to repay a deficit of trust.” Read the rest of this entry »
Over the last few days we’ve had an influx of good comments come into the blog. I enlisted Keith Gumbinger, vice president of HSH.com and 25-year observer of the mortgage and real estate markets, to answer some of the recent questions we received.
1. The first question comes from Rick who commented on the post “Update 1: HARP receives one year extension—what’s the point?” Read the rest of this entry »
The use of automated valuation models (AVMs) can make it faster, easier and cheaper for mortgage lenders to value your home. But do they understate your home’s value and will they cost you money?
If you buy apparel from “big and tall” clothing stores, you’re used to paying more and having less to choose from. “Regular guys,” on the other hand, benefit from a wider selection of products and more competition between retailers.
Jumbo mortgage refinancing is the same way — a jumbo loan is harder to find and more expensive than smaller Fannie Mae, Freddie Mac or FHA loans. Read the rest of this entry »
HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.
