Frost Mortgage » First-Time Homebuyer

Mortgage Rates Hit 4.15 Percent, Lowest Mark in Five Decades

Greg Frost Jr. — Thu, 18 Aug 2011 23:12:13 +0000

Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS), showing mortgage rates, fixed and adjustable, reaching all-time record lows providing further incentive for those homeowners looking to refinance. The 30-year fixed-rate mortgage (FRM) averaged 4.15 percent with an average 0.7 point for the week ending Aug. 18, 2011, down from last week when it averaged 4.32 percent. Last year at this time, the 30-year FRM averaged 4.42 percent. The 30-year fixed average of 4.15 percent, breaks the previous record low of 4.17 percent set on Nov. 11, 2010.

Thu, 2011-08-18 10:32 — NationalMortgag…

NAHREP Report: Latinos, First-Time Homebuyers Are the Key to the Housing Recovery

Greg Frost Jr. — Tue, 21 Jun 2011 21:58:11 +0000

A report by the National Association of Hispanic Real Estate Professionals finds that the size and age of the Hispanic population, the fact that most are married with kids and their perception of homeownership as a symbol of success mean they will likely fuel first-time home purchases and drive the housing market on the path to recovery. Over the next 15 years, The State of Hispanic Homeownership predicts that Latinos will bolster demand for condos, starter homes and first trade-up properties.

RISMedia (06/21/11)

Mortgage Rates Decline

Greg Frost Jr. — Fri, 29 Apr 2011 16:18:36 +0000

Borrowing costs on mortgages dipped in the week ended April 28, reports Freddie Mac. The firm said that interest on 30-year fixed loans settled at 4.78 percent, down from 4.8 percent a week earlier and 5.06 percent a year ago. The average for 15-year fixed mortgages, meanwhile, dropped down to 3.97 percent from 4.02 percent last week and 4.39 percent during the comparable period of 2010.

Wall Street Journal (04/29/11) Becker, Nathan

Existing-home sales up 3.7% in March

Greg Frost Jr. — Wed, 20 Apr 2011 20:01:14 +0000

Existing-home sales rose 3.7% between February and March, but still remain below year-ago levels as consumers struggle to obtain mortgage financing, the National Association of Realtors said Wednesday.

However, the homebuyers joining the market are enjoying record-low mortgage rates. NAR’s home affordability index shows the monthly mortgage principal and interest payment on a median-priced home is only 13% of gross household income, the lowest level since 1970.

“Given that FHA (Federal Housing Administration) and VA (Veterans Affairs) government-backed loan programs turned a modest profit over to the U.S. Treasury last year, and have never required a taxpayer bailout, we believe low down payment loans should continue to be available for those consumers who have demonstrated financial responsibility and are willing to stay well within their budget,” NAR President LawrenceYun said.

www.housingwire.com

Discounts Expected in Spring Housing Market

Greg Frost Jr. — Tue, 22 Mar 2011 20:58:04 +0000

The National Association of Realtors reports a 9.6 percent drop in home resales in February and a decline in the median price to a nine-year low of $156,100 – which it attributes in part to poor weather, a jump in distress sales and abandoned deals due to lowball appraisals. Observers anticipate a similar trend for new homes, prompting some builders to hike discounts and broker commissions. Experts say low interest rates and bargain pricing could draw more buyers during the spring home-buying season.

Wall Street Journal (03/22/11) P. A5 Kalita, S. Mitra; Wotapka, Dawn

U.S. Home Sales Accelerate as Prices Decline Amid Rebound

Greg Frost Jr. — Tue, 08 Mar 2011 17:06:34 +0000

The National Association of Realtors reports a drop in the resale home price to a median of $158,800 in January — the third decrease in three years and a nine-year low. Falling prices helped boost sales 22 percent from October; but the rebound may be short-lived, with the Mortgage Bankers Association expecting interest rates to near 6 percent by year-end and experts projecting lower demand due to higher energy prices.

Bloomberg (03/08/11) Howley, Kathleen M.

Mortgage Lending Outlook Warming Up, As Rates Top 5 Percent

Greg Frost Jr. — Fri, 11 Feb 2011 18:47:03 +0000

With an improved mortgage lending landscape, more buyers and refinancers with good credit are tapping into still historically low rates and borrowing for bigger purchases. Banks should relax underwriting standards this year as they look to put cash into loans that generate attractive returns. National Association of Realtors chief economist Lawrence Yun credits them for effectively building cash reserves since the financial crisis. He states, “Since their cash reserve situation is now plentiful, I anticipate banks will go back to the lending business again. They will be looking for opportunities and good borrowers.”

Investor’s Business Daily (02/11/11) Much, Marilyn

Home Affordability Returns to Pre-Bubble Levels

Greg Frost Jr. — Wed, 09 Feb 2011 16:14:57 +0000

Data from Moody’s Analytics shows that U.S. home affordability returned to pre-bubble levels in a growing number of markets over the last year as price depreciation set the stage for a housing rebound. Of the 74 markets tracked, affordability at the end of the third quarter had either returned to or surpassed the average reached between 1989 and 2003 in 47 of those markets. At the same time, however, price drops left more borrowers owing more on their mortgage than the property is worth.
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Wall Street Journal (02/09/11) Timiraos, Nick

New-Home Recovery Seen as Post-Super Bowl Selling Season Starts

Greg Frost Jr. — Tue, 08 Feb 2011 17:09:07 +0000

New home sales may bounce back this spring, and the rebound could last through at least 2012, predict market watchers. The Mortgage Bankers Association forecasts a 10 percent jump in volume; while Fannie Mae and the National Association of Home Builders project gains of 18 percent and 20 percent, respectively. The groups are optimistic despite tighter underwriting, the absence of a home buyer tax credit and stiff competition from bargain-priced foreclosure properties.

Business Week (02/08/11) Howley, Kathleen M.

Mortgage Applications Rose Last Week

Greg Frost Jr. — Wed, 19 Jan 2011 16:26:51 +0000

As interest rates declined to their lowest level in a month during the week ended January 14, the Mortgage Bankers Association reports, home-loan application activity rose 5 percent. Fixed 30-year mortgage rates averaged 4.77 percent for the week, down a notch from 4.78 percent the week before. The rate has fallen from 4.93 percent late last month.
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WXEL (01/19/11) Yoon, Al