home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Mortgage Rate News | Mortgage Market Index | ARM indices | ARM Statistics
Average fixed and ARM rates. Rate forecasts. Quotes on ARM indexes including COFI, MTA, LIBOR & Treasuries. Rate reset studies and reports. Mortgage rate litigation.

Refis Continue Tumble As Fixed Rates Climb past 7%

Rates may head down

November 30, 2001


Refinance applications tumbled as fixed mortgage rates soared past seven percent this week. Freddie Mac reported that the average thirty-year fixed rate mortgage (FRM) rose twenty-seven basis points (BPS) from last week to 7.02 percent. While the 30-year average rose only 20 BPS in the North Central , that region of the country had the highest average at 7.07%. The Southeast is still below seven percent, at 6.99% -- the lowest region in the country.

Robert Van Order, Freddie Mac's chief economist, said "although we had confirmation this week that the US economy has been in a recession since March of this year, mortgage rates jumped. This is because sentiment that the recession will not be as long or as deep as usual is putting upward pressure on mortgage rates."

In its announcement of the results from its latest weekly survey of 125 thrifts, commercial banks and mortgage lending companies, Freddie said that the average fifteen year FRM rose 29 BPS from last week to 6.53%. Because of the greater spike in the 15-year rate, the difference between the thirty-year and the fifteen-year narrowed to 49 BPS, or just under 1/2 percent, from 51 BPS last week.

Three weeks of rising rates have continued to push down refinance activity. The Mortgage Bankers Association of America (MBA) reported that applications for refinances fell almost fifteen percent from the prior week. Just two weeks ago, MBA reported that refinance applications peaked out at a level nearly thirty percent higher than this week's reported levels.

Refinances may get a boost if Bankrate.com's "mortgage experts" are right. Bankrate.com said that nearly sixty percent of the more than 100 mortgage bankers, mortgage brokers and other industry experts it surveyed believe rates will fall more than 2 BPS over the next 35-45 days. Greg McBride, Bankrate.com's financial analyst, said releases due throughout the week could push rates lower. "The Fed's Beige Book, durable good orders, an estimate of Gross Domestic Product, and a Purchasing Manager's indicator may reinforce the notion of lingering economic weakness."

One bright spot in MBA's weekly survey, which covers approximately 40 percent of all U.S. retail residential mortgage originations, was purchase application activity; applications for purchase-money mortgages were 9.6% higher than last week. Also, this is the second week that purchase applications were higher. Freddie's Van Order said that one offset to the gloomy economy is an active and healthy housing industry. "As a matter of fact, new and existing home sales in October rebounded unexpectedly from the previous month," he added.

The average 1-year adjustable rate mortgage (ARM) rose slightly to 5.22% from 5.18% last week, according to Freddie. The spread between the 30-year FRM and the ARM widened to 180 BPS from 157 BPS the prior week. The effects of this wider margin can be seen be seen in ARM activity, which MBA said edged up to 9.6% of overall activity from 9.0% last week. This is the second week ARM activity has increased.

Sam Garcia has been in mortgage lending since 1980, and is managing editor of MortgageDaily.com. He also owns and operates CloseNow.com, a real estate portal site.

email: [email protected]

hosted by USANow.net

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders