30 Yr Fixed Rate Mortgages Post their Lowest Level This Year

Mortgage rates continued their steady fall this week, posting their lowest level this year. The drop was largely attributed to the turmoil affecting the world’s financial markets. Mortgage rates often reflect movements in the yield of long term treasury bonds.

Average rates for 30 Yr Fixed Rate mortgages slid to 4.78 percent, the lowest since December when they were at 4.71 percent. 30 YR FRMS continued their downward spiral, shedding some percentage points from the previous weeks 4.84 percent. This is certainly music to the ears of families looking for the best housing deals in the market.

Homebuyers are advised to move in on these deals as mortgage rates may not remain low for long.  An improving economy and stock market may shift investors back into the stock market, which in turn could raise mortgage rates back up. The window for locking in on these mortgages may not open for a long period as this is brought about by factors which are outside the housing market.

Homeowners hoping to avail of the government refinancing program are also being urged to take advantage of the low mortgage rates. Applications for mortgage refinancing grew to their highest level in 7 months as homeowners hoping to reduce their payments take advantage of the drop in mortgage rates.

Home sales seem to be cooling down even as mortgage rates have been steadily sliding down. This may due to the fact as some of the popular government programs like the Tax Credit program which has been fueling the resurgence of the housing market ended. Its role in the housing markets recovery as applications for home sales surged prior to the programs end.

Reported by REOProteams

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One out of Ten Mortgage Payments Delayed

The Mortgage Bankers Association recently released a report showing that an estimated 1 out of 10 borrowers were behind their mortgage payments. Records show that 10.06 percent of all mortgage loans during the first quarter of the year were delinquent up from 9.12 percent a year ago.

This was reflected in all types of loans which posted an increase in delinquency rates compared to last year. The number of loan delinquencies has been growing steadily during the last few quarters inching ever closer to today’s 10.06 percent.

However, delayed payments for FHA loans improved to 13.15 percent, one of the few sectors were the rate of delinquencies posted a positive figure. The improved numbers are largely due to the changes undertaken after the losses incurred during 2007 and 2008 were most of FHA guaranteed loans started going bad.

Basically, there were no changes in the number of foreclosed homes from the previous quarter but was significantly higher than the number of repossessed loans the same quarter last year. The number of foreclosed homes stood at 4.63 percent way higher than last year’s 3.85 percent.

Other good news included a seasonal drop in the number of delinquencies during last year’s final quarter. Increased holiday spending and heating costs have traditionally caused homeowners to miss mortgage payments but surprisingly delinquencies went down a sign that the economy might be improving.

There is also fear that the number of foreclosures may see a rise this year as majority of homeowners who have applied for mortgage modification may have failed to qualify for permanent restructuring. Unless fundamental problems such as unemployment are addressed, foreclosures and delayed payments will continue to mar the housing market’s landscape.

Reported by REOProteams

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Mortgage Rates break 5 Percent Level

Surprisingly, mortgage rates dropped to their lowest levels this year even as some economist expressed concerns that the end of some government programs may signal another round of mortgage rate increases. The drop closely reflected the movement of interest rates on long term Treasury bonds.

Improved mortgage rates are largely due to shifts in investor sentiments as the continuing European debt crisis has moved them into the more stable long term US bonds. Long term US Treasury bonds and commodities like gold have long been a safe haven for many investors when financial markets have been in turmoil.

Average rates for 30 Yr FRMs fell to 4.93 percent last week against the previous week’s 5 percent rates. This was also the lowest since 30 Yr Fixed Rate Mortgage rates reached a record low of 4.71 percent in December. The government program ended this March but treasury officials have indicated that they would keep the doors open when the housing market’s recovery looses steam.

The average fixed rate dropped to a record low of 4.71 percent late last year, pushed down by a campaign by the Federal Reserve to reduce borrowing costs for consumers. The program ended this spring, but rates have remained low, especially after fears that Greece’s government would default shook world markets.

15 Year Fixed Rate Mortgages stood at 4.3 percent a slight improvement from last week’s 4.36 percent. Average rates for 5 Year Adjustable Rate Mortgages also went down to 3.95 percent and One Year Adjustable Rate Mortgages also improved to 4.02 percent from the previous weeks 4.07 percent.

Reported by REOProteams

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Lower Delinquencies seen in Homeowners with Risky Mortgages

More positive signs from the housing economy as the number of homeowners with high risk mortgages who fell behind their mortgage payments dropped last month. This was the first time in four years that the number of late payments for this type of mortgages posted a drop in numbers.

The large number of foreclosures and late payments being experienced today are due to “Alt-A” mortgages which required little proof that a homeowner could pay his mortgage payments. Most of these transactions were done during the height of the housing boom, when real estate agents were trying to push properties as fast as they were being built.

Government efforts to curb the rising number of foreclosures included the mortgage refinancing program where homeowners were offered the chance of lowering their mortgage payments. This gave them the chance to negotiate a new contract which took advantage of low mortgage rates. A majority of these high risk mortgages were offered in California and Florida who suffered from the housing crisis’ worst effects.

According to a report released by Fitch, late payments made on “Alt-A” mortgages dropped to 34.1 percent this April from 34.4 percent the previous month, the first improvement in four years. An increase was noted however with homeowners with prior good credit ratings as many factors in the economy including unemployment still pose a threat to the housing economy.

Reported by REOProteams

For more information on the latest and hottest deals or how we at REOProteams.com could help you please email us at info@REOproteams.com or visit us at www.reoproteams.com or LVbargainproperties.com