Archive for Mortgage Rates
Treasury to Sell Mortgage Backed Securities
Posted by: | Comments| With no major developments in Japan or the Middle East and little economic data on the schedule, mortgage markets had one of their quietest weeks of the year. The only significant market moving news was an unexpected announcement from the Treasury on Monday, which pushed mortgage rates a little higher. For the rest of the week, mortgage rates barely changed.
The Treasury announced on Monday that it will begin selling its remaining $142 billion in agency-guaranteed mortgage-backed securities (MBS) holdings. Beginning this month, the Treasury plans to sell up to $10 billion per month, as they wind down the emergency programs put in place in 2008 during the financial crisis. The expected increase in future supply pushed MBS prices lower. Mortgage rates, which are largely based on MBS prices, moved higher. The big question now is what the Federal Reserve plans to do with its larger $944 billion MBS portfolio. A similar announcement from the Fed would have a much larger negative effect on mortgage rates. The housing sector data released this week was weaker than expected. February Existing Home Sales fell 10% from January. The inventory of unsold existing homes rose to an 8.6-month supply from a 7.5-month supply in January. Distressed sales accounted for 39% of all sales. Median existing home prices dropped 5% to the lowest level since April 2002. February New Home Sales fell 17%. As a result of price declines and continued low mortgage rates, home affordability is at the most favorable level in years, according to data from both the NAR and the NAHB. |
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MBA Sees 36% Falloff in Mortgage Production in 2011
Posted by: | Commentshe Mortgage Bankers Association (MBA) released its market outlook to the media on Wednesday. The trade group’s economists are expecting mortgage lending to shrink by 36 percent this year.
They project originations – including loans for home purchases and refinancing – to total $966 billion in 2011, compared to $1.5 trillion in 2010.
Reports: 30-Year Fixed Rates Edge Higher
Posted by: | CommentsAs of 1/20/2011:
Two separate industry reports released Thursday show that interest rates for 30-year fixed mortgages moved up this week, while adjustable-rate mortgages dipped lower.
Freddie Mac’s study puts the average for a 30-year fixed-rate mortgage at 4.74 percent (0.8 point) for the week ending January 20, 2011. That’s up from 4.71 percent last week. A full year ago, the 30-year fixed rate was averaging 4.99 percent.
The 15-year fixed-rate mortgage, on the other hand, headed lower, dropping from 4.08 percent a week ago to 4.05 percent (0.8 point) this week. Freddie says if you step back in time 12 months, the 15-year rate was averaging 4.40 percent.
The 5-year adjustable-rate mortgage (ARM) came in at 3.69 percent (0.7 point) in the GSE’s latest survey. That’s down from 3.72 percent last week and 4.27 percent a year earlier.
Freddie Mac’s chief economist, Frank Nothaft, attributes the mixed movement in mortgage rates this week to what he described as “tame inflation figures.”
Bank of America Loses $2.2B in 2010
Posted by: | CommentsThe nation’s largest bank reported Friday that it lost $2.2 billion in 2010, or $0.37 per diluted share. By comparison, for the full year of 2009, Bank of America (NYSE: BAC) posted net income of $6.3 billion.
During the fourth-quarter of last year, Bank of America recorded a net loss of $1.2 billion, or $0.16 per share, which included a goodwill impairment charge of $2.0 billion in its home loans and insurance division. Had it not been for this charge, the company says it would have earned $756 million in Q4.
Bank of America is the only one of the “big four” to report a loss. JPMorgan Chase, Citigroup, and Wells Fargo all reported positive earnings for both the fourth quarter and full year of 2010. Analysts were expecting BofA to show similar results.
Sphere: Related ContentMortgage Interest Rates
Posted by: | CommentsMortgage rates retreated this week, marking the second week in a row they’ve headed lower. Interest rates began a sharp ascension in early November, and experts have warned that the trend is likely to continue. The recent change of pace was attributed to last Friday’s jobs report, which was weaker than market forecasts. Freddie Mac says 30-year rates this week dropped to 4.71 percent while 15-year rates fell to 4.08 percent. Bankrate says the larger jumbo 30-year fixed rate edged down to 5.57 percent.
Sphere: Related ContentReal Estate Interest rates
Posted by: | CommentsTwo separate industry reports released Thursday show that mortgage interest rates across the board retreated this week, beginning the new year slightly lower than levels seen at the end of 2010, and still well below where they sat at the beginning of last year even with the sharp run-ups witnessed during November and December.
The average 15-year fixed mortgage retreated to 4.32 percent (0.41 point), falling from 4.39 percent last week, while the larger jumbo 30-year fixed rate dropped from 5.64 percent to 5.59 percent.
Adjustable rate mortgages were mostly lower, as well, with the average 3-year ARM sinking to 3.9 percent and the 5-year ARM dipping to 3.99 percent in the tracking company’s study.
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