The Mortgage Reports

Finding The Best Jumbo And Super Jumbo Mortgage Rates Takes Effort

Dan Green — Fri, 20 Nov 2009 05:58:46 PST

To be classified as "high-cost", an area's median home price must exceed $365,000. 324 areas qualify nationwide and, in each of those regions, the conforming loan limit has been modified to 115% of the median home price. Neither Chicago nor Cincinnati made the list, though. As a result, homeowners are relegated to the $417,000 limits.

A Mortgage Rate Prediction For The Next 30 Days (November 19, 2009)

Dan Green — Thu, 19 Nov 2009 05:52:57 PST

Consumer spending drives the economy. Without spending, there's no growth and, as a result, tepid retail sales reports force Wall Street to rethink its bets on U.S. economic recovery. It's a primary reason why rates return to 5 percent again and again. The economy is back from the brink -- banks are healthier, investment is returning, household net worth is up -- but consumers continue to stand en garde. Confidence is down. A recovery is not a recovery until consumers buy-in. Literally. And, right now, that's not happening.

2010 Conforming Loan Limits : Same As 2009, 2008, 2007 and 2006

Dan Green — Tue, 17 Nov 2009 03:30:59 PST

Conforming mortgages are appropriately named; they "conform" to the mortgage underwriting guidelines of Fannie Mae or Freddie Mac. Mortgages meeting these criteria are securitized on Wall Street as mortgage-backed bonds. As mortgage performance has weakened, however, lending standards have tightened. Today's would-be borrowers are asked to document more income, deeper reserves, and higher credit scores. One underwriting area that hasn't tightened, however, is the maximum allowable loan size. In 2010 -- for the 5th consecutive year -- the single-family conforming mortgage loan limit will be $417,000.

Trends In Mortgage Rates : What The Fall Season Brings To Rate Shoppers

Dan Green — Mon, 16 Nov 2009 07:44:23 PST

Like in 2006, 2007 and 2008, Autumn 2009 is marked by falling leaves and falling mortgage rates. The trend looks more like a pattern. Based on Freddie Mac data of the last 4 years, 30-year fixed mortgage rates rise from January through August, and fall through fall. There's 6 weeks left until January. The clock may be ticking for today's home buyers and rate shoppers.

Of The Top 10 Foreclosure Markets Nationwide, Only 1 Is Getting Worse

Dan Green — Fri, 13 Nov 2009 04:19:39 PST

Overall, this month's foreclosure report is another positive signal in the housing market. Recovery is underway. For homebuyers looking at foreclosed homes, though, the window for "a deal" may be closing. Since foreclosures became "big business" toward the end of 2008, real estate firms found ways to make buying a foreclosed home faster and cheaper. It's no surprise that distressed properties now account for nearly 1/3 of home resales.

A Mortgage Rate Prediction For The Next 30 Days (November 12, 2009)

Dan Green — Thu, 12 Nov 2009 06:58:25 PST

Since November 2008, 30-year fixed mortgage rates have been range-bound at 5. But 5 percent is unnatural given the current economy. We're not at the same place we were a year ago. Many of the contributing factors to the near-economic collapse are already in repair.

Summarizing The New, Stricter FHA Streamline Refinance Program (Changes Effective November 17, 2009)

Dan Green — Tue, 10 Nov 2009 04:45:06 PST

Want to refinance on the FHA Streamline Refi program? Better get a move on. Beginning in just 5 days -- November 17, 2009 -- the FHA changes over to new guidelines for its popular FHA-to-FHA refinance program. Getting approved for a Streamline Refi will be more difficult and more expensive.

FHA Mortgage Rates Are Lower Than Conventional Mortgage Rates

Dan Green — Mon, 09 Nov 2009 07:58:19 PST

FHA mortgage rates are lower than conventional mortgage rates right now. It's an interesting development, especially for homeowners and home buyers with low equity. Unless you've got 20 percent into a property, if you're locking a 30-year fixed rate mortgage, there's compelling reasons to go FHA.

Summarizing The (New) First-Time Home Buyer Tax Credit Program

Dan Green — Thu, 05 Nov 2009 13:52:56 PST

Congress voted to extend and expand the $8,000 First-Time Home Buyer Tax Credit today. The bill is expected to be signed into law Friday.The "First-Time Home Buyer Tax Credit" isn't just for first-time home buyers anymore. Under the new rules, homeowners with at least 5 years in their current residence qualify for the tax credit, too. However, instead of the full $8,000 bonus afforded to first-timers, "move-up" buyers get capped at $6,500.

A Mortgage Rate Prediction For The Next 30 Days (November 5, 2009)

Dan Green — Thu, 05 Nov 2009 07:39:34 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.

How Today’s FOMC Statement Affects Mortgage Rates And Homeowners (November 4, 2009)

Dan Green — Wed, 04 Nov 2009 14:01:49 PST

A brief recap of the Federal Open Market Committee's November 4, 2009 statement and what it means for mortgage rates, homeowners, and the economy.

Heads-Up Email Subscribers : I’m Moving To MailChimp

Dan Green — Tue, 03 Nov 2009 12:32:16 PST

Just a quick heads-up to my blog-via-email subscribers. Effective Wednesday, I am switching email services from FeedBurner's free service to MailChimp. It's a new look for the same great mortgage blog content. I use MailChimp to send email newsletters to my mortgage clients and find the company's RSS-to-email product interesting. Y'all are the guinea pigs here. I think it'll work out fine for everyone.

The Housing Market Bottomed 9 Months Ago, Based On The Data

Dan Green — Mon, 02 Nov 2009 21:31:01 PST

The last two years have been rough on housing in a chain reaction-kind of way. First, mortgage guidelines tightened, preventing some homeowners from ditching onerous ARM products. That sparked a foreclosure boom that led to large losses on Wall Street. In turn, it sank the U.S. economy. Today, as compared to 3 years ago, foreclosures are way up, home values are way down, and mortgage rates are as low as they've ever been. It's wonderful news for home buyers -- there's a plentiful supply of homes and financing is cheap. Home affordability is near all-time highs. But the market is changing.

How Long Do Mortgage Rate Quotes Last, On Average?

Dan Green — Mon, 02 Nov 2009 04:03:21 PST

Mortgage rates aren't changing as quickly as they did this summer, but they're still changing pretty quickly. Over the last two month, on average, lenders have updated pricing every 4 hours, 11 minutes. Over the last week, it's 3 hours, 20 minutes. It's tough to shop for mortgage rates at a time like this.

Mortgage Rate Predictions (October 29, 2009)

Dan Green — Wed, 28 Oct 2009 21:28:20 PDT

Need a mortgage rate prediction for the next month? 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, veterans mortgages, jumbo or super jumbo mortgages. Nor [...]

Looking For The Housing Bottom? These Stats Say It Was Back In February 2009.

Dan Green — Wed, 28 Oct 2009 04:45:10 PDT

For the 7th consecutive month, the Case-Shiller Index showed a reduction in annual home price declines. That's more than two seasons, folks. Surely, by now, we can say housing is in recovery.

Inflation Is Both Overstated And Understated. Mortgage Rates Lose And Win.

Dan Green — Mon, 26 Oct 2009 07:45:53 PDT

When the government makes it press releases, it doesn't talk in terms of those raw numbers. Instead, it talks about inflation in terms of change from the month prior, as a percentage. The government rounds this percentage to one decimal. According to the government, consumer inflation fell 0.1% last month. And this is where the problems set in.

Talking Mortgage Rates To 6 Percent, FHA Streamlines, And The First-Time Home Buyer Tax Credit Extension

Dan Green — Fri, 23 Oct 2009 05:15:08 PDT

Earlier, I asked my Twitter followers what mortgage questions they'd like to have answered. I picked 3 of their replies and pushed it to video. The video is a quick 2 minutes.

Mortgage Rate Predictions (October 22, 2009)

Dan Green — Thu, 22 Oct 2009 05:56:44 PDT

Rising Gas Prices Got You Down? It’s Nothing Compared To How Mortgage Rates Will Rise.

Dan Green — Wed, 21 Oct 2009 07:02:58 PDT

Oil prices are on the move, crossing $80 per barrel for the first time in a year. The charge can't be coming at a worse time for mortgage rate shoppers. With Wall Street already in debate about inflation, the surge in crude just adds fuel to fire. Meanwhile, you may have that noticed gas prices are up this week. A lot. Use this as a clue -- higher mortgage rates are coming.