The Mortgage Reports

You Can’t Get Your Mortgage News From A Newspaper. And Here’s The Proof.

Dan Green — Mon, 08 Feb 2010 05:02:17 PST

There's a reason why everyone from first-time home buyers to bona fide investors hate the mortgage process -- the media tells them one thing about mortgage rates, and in-the-game loan officers tell them something else.

The Crystal Ball : Housing Market, Mortgage Rates, FHA Guidelines, And Investor Overlays

Dan Green — Thu, 04 Feb 2010 21:04:29 PST

I gave a television interview with Beejal Patel of First Business this week and we covered a lot of ground topics like housing, mortgage rates, and the FHA.

Mortgage Rate Predictions For The Next 7 Days (February 4, 2010)

Dan Green — Thu, 04 Feb 2010 10:03:22 PST

On the first Friday of every month, at 8:30 AM ET, the U.S. government releases the Non-Farm Payrolls report, except most people don't call it that. They call it "the jobs report". Tomorrow is the first Friday of the month. The jobs report has always been influential with respect to mortgage rates but, lately, it's of larger import. This is because Wall Street believes that jobs growth is the way forward for the economy. No jobs, no growth.

FHA Mortgage Insurance Premiums : Don’t Confuse The FHA’s Wish List For Your Own Reality

Dan Green — Tue, 02 Feb 2010 06:29:35 PST

This is a snippet from page 348 of the Special Topics sub-section in the 2011 Congressional Budget. It recaps the new FHA mortgage insurance guidelines for case numbers assigned after April 5, 2010. It also shows the FHA's request to have authority over its mortgage insurance premiums from Congress. According to the highlighted text, the FHA wants make two changes, pending congressional approval.

Predicting February’s Mortgage Rate Behavior Using January’s Market Data

Dan Green — Mon, 01 Feb 2010 06:44:48 PST

On average, mortgage lenders issued just 1.4 rate sheets per day in January, or 7 per week. Mortgage rates haven't been that stable on day-to-day basis in 10 months. However, stability has a way of unwinding rather quickly. Here's what to expect in February.

Mortgage Rate Predictions For The Next 7 Days (January 28, 2010)

Dan Green — Fri, 29 Jan 2010 02:48:04 PST

When the economy hit the skids in September 2008, the government made a massive intervention. In addition to formal stimulus from Congress, the Federal Reserve did what it could to loosen up the credit markets. One of the Fed's most well-known programs was its commitment to buy $1.25 trillion in mortgage-backed bonds in the open market. Internal studies from the Fed say the program lowered rates by 1 percent last year. The program ends March 31, 2010.

Reviewing The FOMC Statement And What It Means For Mortgage Rates (January 27, 2010)

Dan Green — Wed, 27 Jan 2010 14:58:24 PST

A brief recap of the FOMC's statement today and what it means to mortgage rates. In short, rates are higher and should go higher still.

A Real Estate And Mortgage Technology Conference You’ll Want To Attend

Dan Green — Wed, 27 Jan 2010 07:52:33 PST

A fair number of my readers are mortgage- and/or real estate-related businesses. Consider this a public service announcement. REtechSouth is March 25-26, 2010 in Atlanta -- 8 weeks away. This is a show you should make time for.

Watching How Mortgage Rates Moves As Compared To The Fed Funds Rate (1990-2010)

Dan Green — Tue, 26 Jan 2010 04:32:24 PST

The Federal Reserve begins a scheduled 2-day meeting today during which it which it will vote to leave the Fed Funds Rate unchanged near zero percent. The press will report this tomorrow as "Fed Holds Rates Steady". But, don't confuse this to mean that the Fed held mortgage rates near zero. The Fed doesn't set mortgage rates. The Fed sets the Fed Funds Rate. The former is a long-term rate and the latter is a short-term rate. The Fed Funds Rate and the 30-year fixed mortgage are two different animals.

The Bankrate Mortgage Rate Trend Index Was Less than 25% Accurate In 2009

Dan Green — Sun, 24 Jan 2010 22:03:42 PST

If you want to know where mortgage rates are headed in the future, you may be better off ignoring the experts. I conducted a 50-week study of the popular Bankrate.com Mortgage Rate Trend Index and it showed that the "expert consensus" on mortgage rates is wrong 3 times more often than it's right. That's not good.

Mortgage Rate Predictions For The Next 30 Days (January 21, 2010)

Dan Green — Fri, 22 Jan 2010 03:45:18 PST

Studies from inside the Fed say the group's intervention lowered rates by 1 percent last year. We've been getting low rates because the mortgage-backed market is "artificial". The Fed is a non-natural buyer. Starting April 1, 2010, though, life goes back to normal. The Fed is ending its support and the market will be left to its own. It will be ugly for mortgage rate shoppers.

The Future Of Mortgage Rates, Jumbo Mortgages And Portfolio Lending

Dan Green — Thu, 21 Jan 2010 06:14:58 PST

Tuesday, I asked my Twitter friends what mortgage questions they'd like to have answered. I picked 3 replies and pushed it to video.

FHA Rulebook Changes : Higher Fees, Bigger Downpayments, And More Mortgage Insurance

Dan Green — Wed, 20 Jan 2010 07:13:13 PST

Life as an FHA borrower just got tougher. In an effort to shore up its flailing balance sheet and dwindling capital reserves, the Federal Housing Authority rolled out sweeping financial changes this morning. FHA borrowers must now look better on paper and have more cash at closing. Mortgage insurance premiums are rising, too.

Foreclosure Distribution In The United States (2005-2009)

Dan Green — Tue, 19 Jan 2010 03:46:11 PST

Clearly, some states are more foreclosure-heavy than others. And always have been.

Foreclosure Activity Increased Across Most States In 2009. Ohio Wasn’t One Of Them.

Dan Green — Fri, 15 Jan 2010 06:40:26 PST

As reported by RealtyTrac.com, the Buckeye State is the only state among the Top 10 in 2009 Foreclosure Activity to post fewer filings versus 2008. It's a nice boost for a state that's been beaten down by high unemployment and the New York Jets. Foreclosures are slowing statewide, helping both home values and homeowner morale.

Mortgage Rate Predictions For The Next 30 Days (January 14, 2010)

Dan Green — Thu, 14 Jan 2010 08:53:10 PST

January's job report and retail sales report both went negative, and Pending Home Sales failed to impress. Furthermore, there's been a general softness about the economy and Fed members have gone silent on Fed Funds Rate matters. It's a reversal from December and expectations for 2010 are dialed back a bit. Mortgage rates are falling, but have likely bottomed out.

Why You Won’t Always Get The Lowest Advertised Mortgage Rates

Dan Green — Mon, 11 Jan 2010 03:35:15 PST

If you've ever wondered why a loan officer can't give you the best "advertised rate", it's not because of a bait-and-switch scheme. Most likely, you're being quoted higher mortgage rates because of a government mandate called Loan-Level Pricing Adjustments. LLPAs make mortgage rates work like auto insurance.

December Jobs Report : Bad For Workers, Excellent For Home Buyers

Dan Green — Fri, 08 Jan 2010 07:19:11 PST

December's jobs report was released this morning. It showed 85,000 jobs lost last month and no change in the Unemployment Rate. For stock markets and out-for-work Americans, the figures are disappointing. But December's weak jobs data isn't universally awful. With the bad there comes some good. Mortgage rates are improving.

Mortgage Rate Predictions For The Next 30 Days (January 7, 2010)

Dan Green — Thu, 07 Jan 2010 04:44:03 PST

Need a mortgage rate prediction? I am a regular participant in the Bankrate.com Mortgage Rate Trend survey and this week's survey may point you in the right direction. The Bankrate.com survey is for conventional, conforming mortgages only. It does not apply to FHA mortgages or jumbo mortgages. Nor is the survey specific to Cincinnati or Chicago. Here's what to expect:

The Easy-To-Understand 2010 Home Buyer Tax Credit Program Summary

Dan Green — Tue, 05 Jan 2010 02:01:56 PST

November 6, 2009, Congress modified the $8,000 First-Time Home Buyer Tax Credit program, turning it into the "regular" Home Buyer Tax Credit program. Under the program's new terms, first-time buyers are eligible for up to $8,000 in federal tax credits; "long-time" homeowners get up to $6,500. Note the term "long-time" homeowner. According to the IRS, a long-time homeowner is someone who has used a home as a primary residence for at least 5 consecutive years dating back to 2002.