Wednesday, October 30, 2013

Mortgage Rates Remain Low

Mortgage rates continued keeping their holding pattern just over 4 percent as mortgages applications rise. Lower rates lure home buyers over the past four days as mortgage rates were at their lowest in four months, and they're expected to remain in the low to mid-4 percent range until the economy improves.

Still the Mortgage Bankers Assn. said Tuesday that it expects mortgage rates to rise above 5% within the next 12 months or so. As speculators see it at this level home refinancing is said to plunge in 2014.

Should homeowners secure today's lower rates and beat the projected hike? Lower rates allow homeowners to refinance, which increases their disposable income and helps stimulate economic growth.

Find low rate home mortgage loan offers and more news about low rate home financing.

Tuesday, October 15, 2013

Mortgage Rates Steady

Mortgage Rate News - New mortgage rules go into effect the beginning of next year with a view to averting a housing and credit crisis. Reports that came in last week indicated that applications for U.S. home loans rose as demand for refinancing outpaced purchases. But mortgage rates have begun to rise. 

Regarding the housing market stimulus plan that led to the recent housing rebound "The increased funding will provide forward-looking confidence in the mortgage market and enable Fannie Mae and Freddie Mac to carry out ambitious efforts to ensure mortgage affordability for responsible homeowners." That seemed to be gaining fruition until the partial government shut down slowed the lending process. Still the shutdown has steadied mortgage rates.

Lower rates allow homeowners to refinance, which increases their disposable income and helps stimulate economic growth. National average mortgage rates have steadied at around 4.5 percent for a 30-year fixed loan. That's down several basis points compared to 5% levels in 2008. Some lenders are offering closing-cost credits to boost business.

Find low rate home mortgage loan offers and more news about low rate home financing.


Monday, October 14, 2013

Average U.S. Mortgage Rate Changes Minimal

Mortgage Rates -  The average U.S. rates on fixed mortgages remained near their lowest levels in three months with only marginal adjustments.

Mortgage buyer Freddie Mac reported average rate on the 30-year loan upped to 4.23 percent from 4.22 percent the prior week. The 15-year fixed loan average rose to 3.31 percent from 3.29 percent. The lowest averages since July.

Mortgage rates began dipping last month after the Federal Reserve decision to hold off slowing its $85 billion a month in bond purchases. This method is intended to keep longer-term interest rates low, including home mortgage rates.

The partial government shutdown and a lack of government economic data is said to contribute to lower rates making this a home buyers and home refinancing market. 

Find low rate home mortgage loan offers and more news about low rate home financing.

Wednesday, October 9, 2013

Mortgage Relief For Shutdown Workers

The Government Shutdown and debt ceiling deadline crisis poses the biggest threat to U.S. economy and could shake and rattle financial markets to the limit, yet there is some light at the end of this tunnel.

Bad economic news spells good news for homebuyers as mortgage interest rates continue sliding down to summer levels making this a homebuyers market -in the mortgage market that is. 

In an effort to keep the mortgage market moving Freddie Mac issued a Single-Family Seller/Servicer Guide Bulletin which provides guidance to its lenders and servicers covering temporary workarounds for loan origination processes hindered by the impasse. What does that mean? Even if the borrower is not receiving a paycheck because of the shutdown lenders can deliver mortgages to Freddie Mac.

Borrowers affected by the shutdown can take advantage of Freddie Mac's mortgage relief policies.  In addition, qualified homeowners who are employed in the public or private sector, can be granted forbearance from loan payments up to 12 months.

Find low rate home mortgage loan offers and more news about low rate home financing.


Tuesday, October 8, 2013

The Gov Shutdown And FHA Mortgage Rates

The Federal Savings Bank has been asked about the impact the government shutdown will have on mortgage rates. In the face of a government shutdown. Interestingly the effect on mortgage rates seems to have been minimal, as rates have dropped again for the third consecutive week. This drop spells good news for consumers seeking to take advantage of what could become a home buyers marketing.

A comparison reveals the buyers advantage. According to Fannie Mae and Freddie Mac,  for the week ending on Oct. 3rd  interest rates for a 30-year fixed mortgage averaged 4.22 percent. Compare that to the previous week when fixed rates averaged of 4.32 percent.


While lower mortgage rates are good news for first-time home buyers and those looking for the best mortgage refinance rates the drop comes during a government shutdown which can cause a temporary economic downturn. Still this does not seem to be having a drastic impact on the housing market in the short term. 

Friday, October 4, 2013

With The Government Shutdown - Time is Money

With more than 800,000 government employees unable to earn an income from their federal jobs they will soon be feeling the pinch if the government shutdown lasts more than two weeks. Prevented from volunteering to work without pay by the Anti-Deficiency Act of 1884 a number of offices ability to process forms will slow to a crawl but not necessarily a complete halt.

In harmony with the age old saying, "time is money." Some are concerned whether the absence of non-essential personnel will slow government form processing and thus  impact the economy and their money. Here are some things to expect. With the onset of the federal government shutdown and declining consumer confidence, mortgage rates fell for the third consecutive week. The average U.S. 30-tear mortgage rate slips to 4.22%.

As average U.S. rates on fixed mortgages fall to their lowest point in three months many are wondering what to do? While the rate dip is good news for home buyers and those seeking to refinance at lower rates there is one clincher. The time it takes to process the loan. As the process extends from month to month, fees rise. Fortunately many FHA lenders have been authorized to process loans despite a government lockdown but lenders are depending on a slowed government system to help verify tax issues related to the home loan applicant. Consumers should discuss the matter with their lender to determine what if any additional fees apply given the time factor for processing  loans.

Find low rate home mortgage loan offers and more news about low rate home financing.

Thursday, October 3, 2013

Fed Shutdown - Business As Usual?

The Federal shutdown is impacting over 800,000 federal workers sent home without pay. That number of people can have a severe impact on the economy over time on many levels as discussed in our previous article. While some employees were hoping to volunteer free man hours to get work done the Anti-Deficiency Act of 1884 places a handicap on the idea at least at the present time.

The interpretation of the Act by the Justice Department implies that officials are not allowed to undertake actions that create financial obligations the federal government has not approved. That said, non-essential Federal employees must avoid performing work that requires government funds to complete the task including turning on office lights or using fed funded email accounts.

The Justice Department now interprets this to mean that unless approved a federal workers can't work during a shutdown. Unless, that is, they are considered an essential worker in which case they must work.
This shutdown hurts everyone including extended families of Congress as volunteers for non-profit agencies rendering assistance in areas of  health, medicine, disease and rehabilitation technology are halted.

Centers for Disease Control and Prevention (CDC) would lack funding to support its annual flu vaccination program. If the shutdown does not end soon this could lead to an an upsurge of flu cases and possibly reach epidemic proportions. The CDC will be unable to track outbreaks and monitor infectious diseases at a local level.

The Coast Guard will cut back on routine patrols lowering security along some coastlines against pirate and terrorist intrusions. Death benefits of military families will be delayed curbing spending during the upcoming holiday season.

National security will suffer. Key players leading to the shutdown including members of Congress will have to make greater use their investments to employ private security agencies to protect their assets both public and private as well as institutional buildings and banks as funding for Homeland Security regulatory program ends October 4.

Tens of thousand of Visa applications will be put on hold slowing down a rebounding economy.
There is some light at the end of the tunnel. Despite the ripple effect a delayed Shutdown could have on families and the overall economic recovery on Wednesday stock trading and home mortgage applications continued to process steadily. That means for now it's business as usual.


Wednesday, October 2, 2013

How Gov Shutdowns Impact Your Money

With The House's stay on negotiations the governments ability to move ahead with Fed efforts to fund it's departments and employees and service the general public is put on lockdown. If this shutdown proves lengthy it could impact home mortgage refinances as well, delaying rate locks and resulting in costly extension fees.

Following the housing crash lenders now check everything on a borrower's loan application. It has become standard to verify tax returns as a quality control measure. That means with a Fed shutdown and the IRS closed or staff reduced, processing forms will  take a while, including tax return transcripts. That said,  processing loan applications and getting to closing may take longer than usual. 

With The House's stay on negotiations the governments ability to move ahead with Fed efforts to fund it's departments and employees and service the general public is put on lockdown. If this shutdown proves lengthy it could impact home mortgage refinances as well, delaying rate locks and resulting in costly extension fees.

The federal shutdown will send more than 800,000 federal workers home without pay forcing these public servants to worry about whether they'll make their mortgage payments is also a concern. 

The stock market will also feel the pain of a long term shutdown. Fed cutbacks will limit critical financial services for millions and damage financial stability across the nation. Despite the shutdown the Stock market opened and trading remained steady Tuesday. 

Will The lockdown freeze home mortgage acquisition for home buyers? The Government gives some lenders "delegated authority"  to go on making FHA loans despite office reductions and lockdown laws. About 80 percent of FHA lenders will also be able to get FHA case numbers through the usual on-line service and the FHA will not be prevented from collecting insurance premiums from borrowers during a shutdown. That said, the FHA program may be able to weather a shutdown as long as it is a short term situation.

For a list of current mortgage rates, historic mortgage rates, charts and interest rate news visit Refinancial

Tuesday, October 1, 2013

How A Government Deadlock Would Impact Your Money

Efforts in the House of Representatives to delay President Obama's healthcare reforms, was on the verge of shutting down most of the U.S government offices and services. 

The President said, "Many other functions of government would grind to a halt, throwing a wrench into the gears of our economy". The government equates to hundreds of thousands of jobs and thousands of contracts with other agencies and large corporations. This could negatively impact businesses and spending as well as consumer confidence. 

The current economic rebound and growth would stagnate considerably. Prices would go up as well as mortgage rates. Trading would slow. House sales and refinancing activity could drop back to 2007 levels. Homebuyers and those seeking to refinance do well to lock in rates while they are low.