FSBO Mortgage News and Updates
RateDecline Leads to Boost in Apps
By Brad Finkelstein
May2011
Mortgage application volume increased by 7.8% on a seasonally adjusted basis for the week ended May13, as the continuing decline in interest rates drives those consumers who canto refinance. Still, refi application volume is 50% below the most recent peak in this activity which occurred last October, according to the Mortgage BankersAssociation. Full Article
Official says Fed might buy more mortgage-backed securities
By Neil Irwin
Washington Post Staff Writer
Friday, February 5, 2010
The Federal Reserve would consider reopening its program tosupport the mortgage market if interest rates spiked or the economy showed new weakness, Federal Reserve Bank of New York President William C. Dudley said intwo new interviews.
The Fed is buying $1.25 trillion in mortgage-backed securities in its effort to prop up the economy but has said it will end those purchases March 31.
In interviews with the Nightly Business Report and the AssociatedPress, Dudley said the time is right to end the program because the economy is growing and because expanding the purchases would make it harder for the Fed tounwind its support down the road.
But he said the Fed might reconsider if rates rose sharply."Obviously, if mortgage rates were to back up a lot and if that had a big consequence for the economy, then we very well could rethink the issue aboutwhether we wanted to buy more mortgages," Dudley told the Nightly BusinessReport. He made a similar comment in the AP interview.
The Fed said after its policy making meeting last week that it"will continue to evaluate its purchases of securities in light of the evolving economic outlook and conditions in financial markets."
Mortgagerates up but still a deal
February5, 2010
Long-term home mortgage rates inched up this week, but they'restill at bargain levels.
The average 30-year, fixed-rate mortgage climbed to 5.01 percentfrom 4.98 percent last week, mortgage giant Freddie Mac said Thursday.
The average 15-year, fixed-rate mortgage edged up to 4.40 percentfrom 4.39 percent.
Five-year, adjustable rate mortgages also rose to 4.27 percentfrom 4.25 percent, while the average one-year ARM fell to 4.22 percent from4.29 percent.
MortgageRates Remain Low: 30 Year Mortgage Rates at 5.01% and 15 Year Mortgage Rates at4.40%
Mortgagerates were up slightly in the latest weekly mortgage survey, 30 yearmortgage rates are back above 5.00 percent at 5.01 percent. Fixed conformingmortgage rates were higher and adjustable conforming mortgage rates were mixed.
The average conforming 30 year mortgage rate increased to 5.01 percent with an average mortgage discount point of 0.7 points for the week ending February 4,2010, up from the prior week’s average mortgage rate of 4.98percent.
Conforming 15 year mortgage rates increased to 4.40 percent with an average 0.7 mortgage points, up from the previous week’s average mortgage rate of 4.39 percent.
5 yearadjustable mortgage rates increased to 4.27 percent with an average 0.6mortgage discount points, up from last week’s average home loan mortgage rateof 4.25 percent.
1 year adjustable rate mortgages decreased to 4.22 percent with an average discount point of 0.5 points, down from the prior week’s average mortgage interest rateof 4.29 percent.
For amore extensive report on today’s mortgage interest rates, MonitorBankRates.com released its Weekly Mortgage Report on Monday, which follows:
Mortgage Rates
The average conforming 30 year mortgage rate is at 5.05 percent this week, up slightly from theprior week’s average home loan interest rate of 5.04 percent.
Conforming15 year mortgage rates are at 4.40 percent this week, unchanged fom last week’s average loan interest rate.
Jumbo Mortgage Rates
30-yearjumbo mortgage rates are averaging 5.74% this week, down fromthe prior week’s average home loan rate of 5.86%.
15 yearjumbo mortgage loans are averaging 5.21% this week, downfrom the prior week’s average mortgage loan rate of 5.24%.
Adjustable Mortgage Rates
Conforming1 year adjustable mortgage home loan rates are averaging 4.23% thisweek, down from the prior week when one year home loans were averaging 4.32%.
Conforming3 year adjustable mortgage rates are averaging 4.42%, down from lastweek’s average homeloan rate of 4.52%.
Conforming5 year adjustable mortgage loan rates are averaging 4.14% thisweek, down from the previous week’s average mortgage rateof 4.20%.
Conforming7 year adjustable home loan rates are averaging 4.59%, downfrom last week’s average home loan rate of 4.61%.
Conforming 10-year mortgagerates are at 4.99%, a decrease from the previous week’saverage mortgage rate of 5.11%.
Jumbo Adjustable Mortgage Rates
Jumbo 1year jumbo adjustable mortgage rates are averaging 5.30% this week, downslightly from the prior week’s average home mortgage loan rate.5.31%.
Jumbo3-year jumbo ARMs are averaging 5.25% this week, down fromlast week’s average adjustable interest home loan rate of 5.32%.
Theaverage 5 year jumbo ARM is at 4.91% this week, down from theprior week’s average home interest mortgage rate 0f 4.99%.
7 yearjumbo ARMs are averaging 5.44% this week, up from last week’s averageloan mortgage rate of 5.37%.
Theaverage 10 year jumbo is at 5.92%, down from the prior week’saverage 10 year mortgage loan rate of 5.88%.
Conforming Interest Only Mortgage Rates
3 yearinterest only mortgage rates are averaging 4.59% this week, down fromlast week’s average interest rate of 4.65%.
5 yearinterest only loans are averaging 4.31% this week, unchanged from lastweek’s average five year interest only mortgage rate.
7 yearIO home loan rates are averaging 4.75% this week, downfrom last week’s average interest rate of 4.81%.
Jumbo Interest Only Mortgage Rates
3 yearjumbo interest only mortgages are averaging 5.58% this week, upfrom last week’s jumbo interest mortgage rate of 5.52%.
5 yearjumbo IO loan rates are averaging 4.91%, down from the prior week’saverage IO mortgage rate of 5.39%.
Theaverage jumbo 7 year IO loan mortgage rate is at 5.85%, up from lastweek’s average jumbo rate of 5.76%.
Home Equity Loans Rates
Theaverage home equity loan rate was up considerably this week overlast. 10 year home equity loan rates decreased to 7.416% thisweek, down from last week’s average equity home loan rate of 7.418%. 15year home equity rates were unchanged this week at 7.517%.
Home Equity Line of Credit (HELOC) Rates
Averagehome equity line of credit rates were down slightly this week over last. Theaverage HELOC rate is at 4.905% this week, down slightly from last week’saverage HELOC rate of 4.906%.
Fedswarn of top 5 mortgage scams
When given the opportunity, criminals will target whom theyperceive as the weakest among us. And that notion could become even moreapparent as Utah and the nation cope with the bursting of the real estate andeconomic bubbles.
The Salt Lake office of the FederalBureau of Investigation and the Utah Division of Real Estate have compiled a listof the potential top five mortgage related rip-offs in 2010. Chief among them:a reverse mortgage scam targeting the elderly.
"Scam artists are always lookingfor new ways to reinvent the same crime," said Michelle Pickens, specialagent and mortgage fraud coordinator with the FBI. "The reverse mortgagescam is based off the 'straw buyer' model where they use senior citizens …against their own mortgages."
Reverse mortgages can be a legitimateway for homeowners to take equity from their homes without a monthly payment,which can be especially useful to seniors who need supplemental income duringretirement, she said.
Unfortunately, con artists sometimesconvince seniors they can live in a home for free, obtain a home loan under theoccupant's name and disappear with the equity, while leaving the victim torepay the mortgage.
Pickens, who is also a member of thewhite-collar crime squad, said her agency implores homeowners to investigateany third-party offers to take over their mortgage by contacting the FBI or thestate real estate division.
"They've got to be very carefuland very 'due diligent' to make sure the company or individual they're (workingwith) is legitimate," she said.
Others schemes to be aware of includeshort-sale fraud, in which a homeowner and a lender agree to sell a propertyfor less than the mortgage amount. The fraud occurs when a distressed homeownerfinds a prospective buyer and they secretly set a different sale price.
Unbeknownst to the lender, the buyeris willing to pay more for the property and the homeowner pockets thedifference.
Another "kickback" scam isthe builder bailout, which is more common in areas affected by a large surplusof unsold properties, an FBI release stated. A homebuilder offers excessive"incentives" to a buyer, but the incentives are disclosed as a downpayment, leading the lender to believe there is equity in the property. Underthose circumstances, the builder and the buyer are committing fraud.
Fourth on the alert list are loanmodifications in which companies charge up to $2,000, promising to make ahomeowner's mortgage payment more affordable. But some homeowners report thatthey didn't get what they paid for, the release said.