First-time homebuyers could snag lower costs for FHA loans under House-passed bill

A bipartisan bill that cleared the House last week would let first-time homebuyers pay a bit less at closing if they go through homeownership counseling. Borrowers who go through the counseling — aimed at helping them be financially responsible homeowners — would get a discount on the upfront mortgage insurance that all FHA loans require borrowers to pay. Photo by Rolf Bruderer via Getty ImagesThe delinquency rate on FHA loans is close to 9%, compared with about 3% for conventional loans, accord


A bipartisan bill that cleared the House last week would let first-time homebuyers pay a bit less at closing if they go through homeownership counseling. Borrowers who go through the counseling — aimed at helping them be financially responsible homeowners — would get a discount on the upfront mortgage insurance that all FHA loans require borrowers to pay. Photo by Rolf Bruderer via Getty ImagesThe delinquency rate on FHA loans is close to 9%, compared with about 3% for conventional loans, accord
First-time homebuyers could snag lower costs for FHA loans under House-passed bill Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: sarah obrien
Keywords: news, cnbc, companies, fha, mortgage, loan, homebuyers, lower, housing, firsttime, housepassed, loans, upfront, snag, pay, costs, bill, insurance, borrowers


First-time homebuyers could snag lower costs for FHA loans under House-passed bill

A bipartisan bill that cleared the House last week would let first-time homebuyers pay a bit less at closing if they go through homeownership counseling. Called the Housing Financial Literacy Act, the measure would apply to first-time homebuyers who take out a mortgage backed by the Federal Housing Administration. Borrowers who go through the counseling — aimed at helping them be financially responsible homeowners — would get a discount on the upfront mortgage insurance that all FHA loans require borrowers to pay. “The idea behind the legislation is that counseling should improve loan performance and make people better borrowers,” said Pete Mills, senior vice president of residential policy for the Mortgage Bankers Association, which generally supports the bill.

Photo by Rolf Bruderer via Getty Images

The delinquency rate on FHA loans is close to 9%, compared with about 3% for conventional loans, according to data from the Mortgage Bankers Association. In 2009, in the midst of the housing crisis that caused the Great Recession, that FHA delinquency rate reached above 14%. Roughly 83% of all FHA loans (excluding refinanced mortgages) in 2018 went to first-time homebuyers. FHA loans, which come with less-stringent requirements than conventional loans, tend to be used by first-time borrowers with low or moderate incomes who often have lower credit scores than other borrowers. Due to that increased risk for lenders, borrowers are required to pay mortgage insurance to the FHA for many years or over the life of the loan (depending on the particulars of the terms), as well as an upfront mortgage insurance premium. That upfront amount currently is equal to 1.75% of the base loan amount, and it can be paid at closing or rolled into the loan. The proposed discount of 25 basis points would reduce that amount to 1.5%.


Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: sarah obrien
Keywords: news, cnbc, companies, fha, mortgage, loan, homebuyers, lower, housing, firsttime, housepassed, loans, upfront, snag, pay, costs, bill, insurance, borrowers


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This is the credit score you typically need to take out a mortgage

How to improve your credit scoreIf you’re interested in buying a home in the future, there are easy ways to increase your credit score and improve your chances of getting a mortgage at a good interest rate. Payment history makes up 35% of your FICO score, which is the most commonly used measure of creditworthiness. Next, pay attention to your credit utilization rate, which comprises 30% of your score. Credit utilization refers to the percentage of your total available credit that you are using a


How to improve your credit scoreIf you’re interested in buying a home in the future, there are easy ways to increase your credit score and improve your chances of getting a mortgage at a good interest rate. Payment history makes up 35% of your FICO score, which is the most commonly used measure of creditworthiness. Next, pay attention to your credit utilization rate, which comprises 30% of your score. Credit utilization refers to the percentage of your total available credit that you are using a
This is the credit score you typically need to take out a mortgage Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: alicia adamczyk
Keywords: news, cnbc, companies, payment, need, month, mortgage, score, utilization, improve, typically, credit, pay, keeping, bills, rate


This is the credit score you typically need to take out a mortgage

How to improve your credit score

If you’re interested in buying a home in the future, there are easy ways to increase your credit score and improve your chances of getting a mortgage at a good interest rate. First of all, pay all of your bills on time and in full. Payment history makes up 35% of your FICO score, which is the most commonly used measure of creditworthiness. Setting your bills on auto-pay and keeping tabs on your payment due date for each account will help ensure that you routinely make on-time payments. Next, pay attention to your credit utilization rate, which comprises 30% of your score. Experts recommend keeping it at 30% or less month to month. Credit utilization refers to the percentage of your total available credit that you are using at one time. If your credit card has a limit of $10,000 and you have a balance of $2,000, your credit utilization rate is 20%, for example.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: alicia adamczyk
Keywords: news, cnbc, companies, payment, need, month, mortgage, score, utilization, improve, typically, credit, pay, keeping, bills, rate


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How your money might be affected if the Fed cuts interest rates

A rate cut could hurt savers with high-yield accountsThe federal funds rate is used as the benchmark for many consumer interest rates. Variable credit card interest rates are tied to the prime rate, for example, which is closely related to the federal funds rate, Hamrick says. The Fed does not directly set mortgage rates, but cutting the benchmark rate could still impact your mortgage. “But a drop in the fed funds rate will contribute to mortgage rates remaining low into the future.” If you hold


A rate cut could hurt savers with high-yield accountsThe federal funds rate is used as the benchmark for many consumer interest rates. Variable credit card interest rates are tied to the prime rate, for example, which is closely related to the federal funds rate, Hamrick says. The Fed does not directly set mortgage rates, but cutting the benchmark rate could still impact your mortgage. “But a drop in the fed funds rate will contribute to mortgage rates remaining low into the future.” If you hold
How your money might be affected if the Fed cuts interest rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: alicia adamczyk
Keywords: news, cnbc, companies, federal, funds, hamrick, affected, economy, money, credit, rates, cut, interest, rate, mortgage, cuts, fed


How your money might be affected if the Fed cuts interest rates

Jerome Powell, chairman of the U.S. Federal Reserve, said that downside risks to the economy remain with trade wars softening business investment and weak inflation.

Federal Reserve Chairman Jerome Powell said Wednesday that the U.S.’s uncertain economic outlook could lead the central bank to cut its benchmark short-term interest rate later this month. Experts say the cut would likely be a modest quarter of a percentage point. The rate cut would be a result of a confluence of factors, including uncertainty over a U.S-China trade war and a slowing economy. How would a rate cut — the first since 2008 — impact the average consumer? While it’s hard to predict, generally, a rate cut is “good for borrowers, bad for savers, and mixed for investors,” Sallie Krawcheck, co-founder and CEO of Ellevest and former Wall Street executive, tells CNBC Make It.

A rate cut could hurt savers with high-yield accounts

The federal funds rate is used as the benchmark for many consumer interest rates. Already, some banks — including Ally and Marcus by Goldman Sachs — have cut yields on some of their retail products, including savings accounts, in anticipation of the central bank’s actions. Experts say savers can also expect CD rates to fall ahead of the Fed’s decision. The exact impact is still unknown, says Mark Hamrick, Bankrate.com senior economic analyst. Although savings account APYs might decrease, he says, many traditional banks never increased them significantly anyway; the national average rate is still 0.10%.

A rate cut helps borrowers with credit card debt

An interest rate cut is bad news for savers, “but it is something of an unexpected gift for borrowers and investors,” says Hamrick. Variable credit card interest rates are tied to the prime rate, for example, which is closely related to the federal funds rate, Hamrick says. So, with the federal funds rate dropping, a card holder could see a drop in their APR within a billing cycle or two, which means smaller monthly payments. Credit card interest rates are currently at a record high, so any breathing room would be a boon to those carrying credit card debt. Still, a slight cut won’t save borrowers much when they are facing double-digit interest rates; it’s important to make a plan to pay off any balance as soon as possible.

Mortgages are more complicated

Mortgage rates are a bit trickier, says Hamrick. The Fed does not directly set mortgage rates, but cutting the benchmark rate could still impact your mortgage. Investors typically rush to the relative safety of bonds when the economy falters. As a result, recent lower bond yields have led to substantially lower mortgage rates since the end of 2018. Cutting rates could potentially reverse that, Hamrick says, as it signals an improving economy. On another front, Skylar Olsen, Zillow’s director of economic research, tells CNBC Make It that other economic factors have more influence on mortgage rates. “The typical 30-year mortgage rate is responding more to uncertainties on a global stage due to trade war concerns and early stage softening in the economy in general than in the fed funds rate,” says Olsen. “But a drop in the fed funds rate will contribute to mortgage rates remaining low into the future.”

Some other loans might be impacted

Consumers with home equity lines of credit would also benefit from lower interest rates, while auto loans should not be materially affected by the change. Federal student loan rates are set by the Department of Education each year, based on the 10-year Treasury note, and are expected to fall next year. Private loan rates might be variable, and therefore could be indirectly influenced by the Fed’s decision. If you hold private loans, it could be worth exploring refinancing options if the Fed drops interest rates.

Overall the effects are mixed


Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: alicia adamczyk
Keywords: news, cnbc, companies, federal, funds, hamrick, affected, economy, money, credit, rates, cut, interest, rate, mortgage, cuts, fed


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Weekly mortgage rates fall further, but only refinance applications rise

It’s almost as if falling mortgage rates are becoming hum-drum, at least for homebuyers. Total mortgage application volume increased 1.3% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 40% higher than a year ago, largely because lower mortgage rates are strengthening the refinance market. “Mortgage rates dropped again for most loan types, which led to an increase in refinance activity, partly driven by a 9% jump in VA appli


It’s almost as if falling mortgage rates are becoming hum-drum, at least for homebuyers. Total mortgage application volume increased 1.3% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 40% higher than a year ago, largely because lower mortgage rates are strengthening the refinance market. “Mortgage rates dropped again for most loan types, which led to an increase in refinance activity, partly driven by a 9% jump in VA appli
Weekly mortgage rates fall further, but only refinance applications rise Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-26  Authors: diana olick
Keywords: news, cnbc, companies, week, rise, rates, fall, mortgage, applications, drop, fell, rate, weekly, higher, refinance, lower, volume


Weekly mortgage rates fall further, but only refinance applications rise

It’s almost as if falling mortgage rates are becoming hum-drum, at least for homebuyers.

Total mortgage application volume increased 1.3% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 40% higher than a year ago, largely because lower mortgage rates are strengthening the refinance market.

Rates have fallen in three of the last four weeks and are now at the lowest level since September 2017. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.06% from 4.14%, with points decreasing to 0.35 from 0.38 (including the origination fee) for loans with a 20% down payment. That is 78 basis points lower than a year earlier.

“Markets last week reacted to a more dovish FOMC statement and forecast, with Treasury yields falling after the meeting,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Mortgage rates dropped again for most loan types, which led to an increase in refinance activity, partly driven by a 9% jump in VA applications.”

The drop spurred more refinance activity, with those applications rising 3% for the week and a striking 92% annually. As home values continue to rise, more borrowers become eligible to refinance, and so each drop in rates brings out more business for lenders.

Mortgage applications to purchase a home, however, fell 1% for the week but were 9% higher than a year earlier. Buyers are less sensitive to weekly rate moves. Existing home sales did move slightly higher in May from April, as rates fell, but they were still lower than a year ago. Buyers continue to face high prices and low supply of affordable homes.

“Now at almost the halfway mark of 2019, we have generally seen a stronger purchase market than last year, despite still-tight existing inventory and insufficient new construction,” Kan said.

Sales of newly built homes fell unexpectedly sharply in May, despite lower mortgage rates. Affordability appeared to be the culprit, although some blamed the drop in weaker consumer sentiment in the overall economy.


Company: cnbc, Activity: cnbc, Date: 2019-06-26  Authors: diana olick
Keywords: news, cnbc, companies, week, rise, rates, fall, mortgage, applications, drop, fell, rate, weekly, higher, refinance, lower, volume


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Lowest mortgage rates in a year and a half don’t impress homebuyers

Mortgage rates are falling fast but not enough to offset high home prices. Total mortgage application volume increased 1.5% last week from the previous week and 12% from a year earlier, according to the Mortgage Bankers Association’s seasonally adjusted index. Total refinance volume rose 6% from the previous week and was nearly 33% higher than a year ago, when interest rates were 52 basis points higher. The refinance share of mortgage activity increased to 42.2% of total applications from 39.7%


Mortgage rates are falling fast but not enough to offset high home prices. Total mortgage application volume increased 1.5% last week from the previous week and 12% from a year earlier, according to the Mortgage Bankers Association’s seasonally adjusted index. Total refinance volume rose 6% from the previous week and was nearly 33% higher than a year ago, when interest rates were 52 basis points higher. The refinance share of mortgage activity increased to 42.2% of total applications from 39.7%
Lowest mortgage rates in a year and a half don’t impress homebuyers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: diana olick
Keywords: news, cnbc, companies, impress, homebuyers, higher, dont, previous, mortgage, half, week, high, refinance, lowest, rates, volume, loans, buyers


Lowest mortgage rates in a year and a half don't impress homebuyers

Mortgage rates are falling fast but not enough to offset high home prices. Buyers are still pulling back.

Total mortgage application volume increased 1.5% last week from the previous week and 12% from a year earlier, according to the Mortgage Bankers Association’s seasonally adjusted index. The gains were driven by refinances.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.23% from 4.33% by the end of last week, with points decreasing to 0.33 from 0.42 (including the origination fee) for loans with a 20% down payment.

“Mortgage rates dropped to their lowest level since the first week of 2018, driven by increasing concerns regarding the ongoing trade tensions with China and Mexico,” said Mike Fratantoni, MBA senior vice president and chief economist. “Some borrowers, particularly those with larger loans, jumped on the opportunity to refinance, bringing the index and average refinance loan size to their highest levels since early April. Additionally, refinances for FHA and VA loans jumped by 11%.”

Total refinance volume rose 6% from the previous week and was nearly 33% higher than a year ago, when interest rates were 52 basis points higher. The refinance share of mortgage activity increased to 42.2% of total applications from 39.7% the previous week.

Refinances are highly rate-sensitive, and the drop in rates added about 2 million more borrowers to the pool of those who could benefit from a refinance, according to Black Knight, a mortgage software and analytics company.

Mortgage applications to purchase a home, however, fell 2% for the week and were barely 0.5% higher than a year ago. High prices continue to sideline buyers, especially first-time buyers, who are a growing segment of the market. Millennials are aging into their prime homebuying years, but they are saddled with debts, are likely paying high rents and are facing one of the least-affordable markets in decades.

“Coming out of the Memorial Day holiday, and likely impacted by the financial market volatility caused by the trade tensions, purchase application volume declined for the week. Potential homebuyers may be more cautious given the heightened economic uncertainty,” Fratantoni said.

Mortgage rates continued to fall sharply this week to the lowest level since August 2017. More economic data in the coming days, including the all-important monthly employment report Friday, could cause another strong move in either direction.


Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: diana olick
Keywords: news, cnbc, companies, impress, homebuyers, higher, dont, previous, mortgage, half, week, high, refinance, lowest, rates, volume, loans, buyers


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As mortgage rates plunge, millions more homeowners can benefit from refinancing

Mortgage rates are falling unexpectedly and sharply, and that means millions more homeowners can now benefit from refinancing their loans. The average rate on the popular 30-year fixed has fallen from a recent high of 4.23% on May 21 to 3.94% now, according to Mortgage News Daily. Mortgage rates loosely follow the yield of the 10-year Treasury. There are now about 5.9 million borrowers who could see their rates drop by at least 75 basis points by refinancing their mortgages. That is an increase


Mortgage rates are falling unexpectedly and sharply, and that means millions more homeowners can now benefit from refinancing their loans. The average rate on the popular 30-year fixed has fallen from a recent high of 4.23% on May 21 to 3.94% now, according to Mortgage News Daily. Mortgage rates loosely follow the yield of the 10-year Treasury. There are now about 5.9 million borrowers who could see their rates drop by at least 75 basis points by refinancing their mortgages. That is an increase
As mortgage rates plunge, millions more homeowners can benefit from refinancing Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-03  Authors: diana olick
Keywords: news, cnbc, companies, millions, mortgage, unexpectedly, refinancing, treasurythere, plunge, million, homeowners, yield, war, according, rates, yields, benefit


As mortgage rates plunge, millions more homeowners can benefit from refinancing

Mortgage rates are falling unexpectedly and sharply, and that means millions more homeowners can now benefit from refinancing their loans.

The average rate on the popular 30-year fixed has fallen from a recent high of 4.23% on May 21 to 3.94% now, according to Mortgage News Daily.

Fear over the ongoing trade war with China, and now potentially Mexico, has investors rushing to the relative safety of the bond market, pushing yields lower. Mortgage rates loosely follow the yield of the 10-year Treasury.

There are now about 5.9 million borrowers who could see their rates drop by at least 75 basis points by refinancing their mortgages. That is an increase of 2 million in just the past month, according to Black Knight, a mortgage software and analytics company.


Company: cnbc, Activity: cnbc, Date: 2019-06-03  Authors: diana olick
Keywords: news, cnbc, companies, millions, mortgage, unexpectedly, refinancing, treasurythere, plunge, million, homeowners, yield, war, according, rates, yields, benefit


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Mortgage refinances surge 8%, as rates fall to the lowest level since January 2018

The walking robot that could soon be delivering your packagesIt’s not fast and may be years from visiting your neighborhood, but a walking robot is part of Ford’s vision for how its autonomous vehicles deliver packages and goods in the…Technologyread more


The walking robot that could soon be delivering your packagesIt’s not fast and may be years from visiting your neighborhood, but a walking robot is part of Ford’s vision for how its autonomous vehicles deliver packages and goods in the…Technologyread more
Mortgage refinances surge 8%, as rates fall to the lowest level since January 2018 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-22  Authors: diana olick
Keywords: news, cnbc, companies, vision, fall, thetechnologyread, packagesits, refinances, surge, mortgage, level, vehicles, soon, rates, 2018, robot, packages, neighborhood, walking, visiting, lowest


Mortgage refinances surge 8%, as rates fall to the lowest level since January 2018

The walking robot that could soon be delivering your packages

It’s not fast and may be years from visiting your neighborhood, but a walking robot is part of Ford’s vision for how its autonomous vehicles deliver packages and goods in the…

Technology

read more


Company: cnbc, Activity: cnbc, Date: 2019-05-22  Authors: diana olick
Keywords: news, cnbc, companies, vision, fall, thetechnologyread, packagesits, refinances, surge, mortgage, level, vehicles, soon, rates, 2018, robot, packages, neighborhood, walking, visiting, lowest


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51% of millennial homeowners say they have regrets about buying their home—here’s why

Millennials are more than twice as likely to be stressed about homeownership as their baby boomer counterparts. That’s according to real estate website Clever, which conducted a survey of 1,000 homeowners comparing millennials (those ages 23 to 38) and boomers (those ages 55 to 73). The survey explores why young people are “more stressed about owning homes than any other generation.” PMI can add up quickly: It typically costs about 1% of your outstanding loan balance, on top of your monthly mort


Millennials are more than twice as likely to be stressed about homeownership as their baby boomer counterparts. That’s according to real estate website Clever, which conducted a survey of 1,000 homeowners comparing millennials (those ages 23 to 38) and boomers (those ages 55 to 73). The survey explores why young people are “more stressed about owning homes than any other generation.” PMI can add up quickly: It typically costs about 1% of your outstanding loan balance, on top of your monthly mort
51% of millennial homeowners say they have regrets about buying their home—here’s why Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: shawn m carter
Keywords: news, cnbc, companies, mortgage, homeowners, 20, millennials, homes, stressed, quickly, millennial, survey, monthly, costs, regrets, buying, 51, say, homeheres


51% of millennial homeowners say they have regrets about buying their home—here's why

Millennials are more than twice as likely to be stressed about homeownership as their baby boomer counterparts. In fact, 51% feel buyer’s remorse, compared to just 20% of boomers.

That’s according to real estate website Clever, which conducted a survey of 1,000 homeowners comparing millennials (those ages 23 to 38) and boomers (those ages 55 to 73). The survey explores why young people are “more stressed about owning homes than any other generation.”

Millennial homeowners’ No. 1 regret is that they say their mortgage payments are too high. Thanks to rising housing costs and competing expenses like student loans, more than two-thirds, or 67%, put down less than 20% on their homes, resulting in higher monthly payments.

Additionally, most millennials who purchased homes without a 20% down payment will be required to pay private mortgage insurance until they’ve paid enough on their mortgage that they only owe 80% of the current market value of the home. PMI can add up quickly: It typically costs about 1% of your outstanding loan balance, on top of your monthly mortgage payments.

Experts recommend trying to build that 20% in home equity as quickly as you can to avoid racking up additional fees.


Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: shawn m carter
Keywords: news, cnbc, companies, mortgage, homeowners, 20, millennials, homes, stressed, quickly, millennial, survey, monthly, costs, regrets, buying, 51, say, homeheres


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Weekly mortgage applications drop 4.3%, despite lower interest rates

It may be the heart of the spring housing season, but the mortgage market isn’t seeing big business. Mortgage application volume fell 4.3% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Mortgage applications to purchase a home fell 4% for the week and were barely 1% higher from a year ago. That sales surge may have been due to a sharp drop in mortgage rates. Mortgage rates started this week slightly higher, but there is big economic d


It may be the heart of the spring housing season, but the mortgage market isn’t seeing big business. Mortgage application volume fell 4.3% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Mortgage applications to purchase a home fell 4% for the week and were barely 1% higher from a year ago. That sales surge may have been due to a sharp drop in mortgage rates. Mortgage rates started this week slightly higher, but there is big economic d
Weekly mortgage applications drop 4.3%, despite lower interest rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-01  Authors: diana olick
Keywords: news, cnbc, companies, homes, sales, buyers, week, interest, lower, 43, rates, higher, supply, volume, applications, despite, mortgage, drop, market, weekly


Weekly mortgage applications drop 4.3%, despite lower interest rates

It may be the heart of the spring housing season, but the mortgage market isn’t seeing big business.

Mortgage application volume fell 4.3% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 4.5% higher annually, thanks to stronger refinance activity.

While applications to refinance a home loan were 5% percent lower for the week, they were still 11% higher than a year ago, because interest rates were 38 basis points higher then. Refinance volume overall, however, is still much lower than normal because so many homeowners refinanced to the historically low rates that followed the last housing crash.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.42% from 4.46%, with points increasing to 0.46 from 0.44 (including the origination fee) for loans with a 20% down payment.

“Mortgage rates were lower last week, as concerns over global growth, particularly in Germany, outweighed more positive domestic news on first quarter GDP growth and business investment,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.

Lower rates didn’t get more buyers off the fence, either. Mortgage applications to purchase a home fell 4% for the week and were barely 1% higher from a year ago. Purchase volume has been weakening this month, despite brighter signs in the overall housing market. There is more supply of homes for sale, and overheated home prices are finally beginning to chill.

Home sales are sending mixed signals right now. Sales started the year weaker, but pending home sales in March jumped more than expected. Pending sales are based on signed contracts. Sales of newly built homes, also measured in contracts, jumped in March as well. That sales surge may have been due to a sharp drop in mortgage rates. Rates have since edged higher, but not by much.

The fact that today’s buyers are so sensitive to the latest mortgage rate swings shows just how much they are struggling to afford homes at all, especially first-time buyers. Supply is leanest on the low end of the market, and that is where the bulk of buyers are. Even as some higher-end homes sit on the market longer, it is still not uncommon in many metropolitan markets to see heavy competition for lower-priced homes. Most of the stagnation in sales is on the highest end of the market, where supply is plentiful.

Mortgage rates started this week slightly higher, but there is big economic data ahead that could swing rates in either direction. The Federal Reserve will make a policy announcement Wednesday afternoon, and the monthly employment report is set to be released on Friday.


Company: cnbc, Activity: cnbc, Date: 2019-05-01  Authors: diana olick
Keywords: news, cnbc, companies, homes, sales, buyers, week, interest, lower, 43, rates, higher, supply, volume, applications, despite, mortgage, drop, market, weekly


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The 10 best cities for first-time home buyers

When buying your first home, you want to choose a place you love — and also one you can afford. To determine the best cities for first-time buyers, personal finance site SmartAsset evaluated U.S. cities with populations of 300,000 or more across seven metrics: value per square foot, number of mortgage lenders, loan funding rate, market volatility, home price fluctuations, housing affordability and homeowner stability. The site used data from a number of sources, including the Department of Housi


When buying your first home, you want to choose a place you love — and also one you can afford. To determine the best cities for first-time buyers, personal finance site SmartAsset evaluated U.S. cities with populations of 300,000 or more across seven metrics: value per square foot, number of mortgage lenders, loan funding rate, market volatility, home price fluctuations, housing affordability and homeowner stability. The site used data from a number of sources, including the Department of Housi
The 10 best cities for first-time home buyers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-01  Authors: emmie martin
Keywords: news, cnbc, companies, buyers, firsttime, best, lenders, finance, zillow, cities, site, number, mortgage, housing


The 10 best cities for first-time home buyers

When buying your first home, you want to choose a place you love — and also one you can afford.

To determine the best cities for first-time buyers, personal finance site SmartAsset evaluated U.S. cities with populations of 300,000 or more across seven metrics: value per square foot, number of mortgage lenders, loan funding rate, market volatility, home price fluctuations, housing affordability and homeowner stability.

The site used data from a number of sources, including the Department of Housing and Urban Development, Zillow, the Mortgage Bankers Association, the U.S. Census Bureau and the Federal Housing Finance Agency.

Below, check out 10 cities where first-time buyers can find a combination of affordable homes, numerous mortgage lenders and thriving real estate markets.


Company: cnbc, Activity: cnbc, Date: 2019-05-01  Authors: emmie martin
Keywords: news, cnbc, companies, buyers, firsttime, best, lenders, finance, zillow, cities, site, number, mortgage, housing


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