Record Low Mortgage Rates Evaporating
Interest rates again fell to new lows but failed to entice more consumers in the mortgage market. Mortgage rates are likely to be higher in next week's reports.
As goes the weekly rhetoric lately, a new record was reported Thursday by Freddie Mac for the average 30-year fixed-rated mortgage. In its latest weekly survey, the secondary mortgage lender said the 30-year rate fell to 4.32 percent -- the lowest level recorded since it began tracking the 30-year in 1971 -- from 4.36 percent a week earlier.
The 30-year was 0.76 percent lower than the same week last year.
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Experts Say Refinance Now
While mortgage rates could fall beyond their lowest levels in more than half a century, experts advise refinance prospects to move now on a transaction.
Mortgage Market Conditions Improve
Mortgage rates fell to fresh record lows, and more consumers went shopping for a mortgage this week.
Deciding Whether to Refinance Now
There are several reasons why refinancing now might be a good idea. Here is a look at some of the factors to consider.
Lower Values, Tougher Guidelines Impeding Refinances
While some people are taking advantage of record low mortgage rates and refinancing their home loans, they are jumping through hoops to qualify and typically walking away with no cash.
Mortgage Rates Could See More Records
Fixed mortgage rates -- which are already at the lowest levels on record -- are still falling, according to one market indicator. And while low interest rates have yet to attract more homebuyers to the market, an increase in traffic has been noted with existing borrowers who are seizing upon a rare refinance opportunity.
Mortgage Market Improves
As mortgage rates headed lower this week, it was the third straight week that new mortgage activity increased. A bigger share of refinance borrowers accounted for the new activity. Meanwhile, mortgage rates on jumbo loans improved compared to conforming loans.
Borrowers Refinancing Into Fixed Rates Under 4%
Many borrowers are refinancing into 15-year fixed rates that have fallen below 4 percent.
Closing Costs Climb
As mortgage lenders have faced tougher regulations, the cost of financing a home purchase has shot up more than a third over the past year. Arkansas is the least expensive of all states to close a loan.
Web Sites for Mortgage Shoppers
Several online destinations provide a plethora of tools to help prospective borrowers determine how much mortgage they can afford.
Fed Moves to Push Rates Lower
One of the most powerful and dominant pursuits is back. It's one that compels fanaticism and stirs up fantasies. No, it isn't the NFL preseason. It is the Federal Reserve effort to lower borrowing costs.
FHA Updates Shouldn't Sting Too Much
Some real estate professionals don't expect proposed changes to FHA approval requirements will have a big impact on most home purchases.
FHA Raising Downpayments, Credit Scores & Fees
Subprime borrowers will face tougher requirements on loans insured by the Federal Housing Administration. Minimum down payment requirements are increasing, acceptable credit scores are being raised and the fees will be higher. The housing agency is also cutting the amount a seller can contribute towards a homebuyer's closing costs.
Anatomy of a Loan Approval
The summer of 2010 will go down in banking history for its historically low mortgage rates. Not to mention the summer of surprise for many borrowers, who are discovering that tighter underwriting laws, declining property values and bad borrowing decisions can torpedo a chance to get in on the low rates.
Refi Mistakes to Avoid
The "Mortgage Professor" has a few pieces of advice for borrowers who are considering a refinance.
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