Tag Archives: Mortgage Rates

Market worries cooled Monday as news reports confirmed a tentative debt-ceiling deal by public officials Sunday, a last-minute agreement that would avert the next financial crisis predicted by economists. In response to the possible deal, mortgage rates stepped down from nominal highs from last week. According to Headline News, Bank of America reported that 30-year fixed-rate mortgages fell to 4.37 percent, down several basis-points from last week. Fellow mortgage giant Wells Fargo yielded 30-year loans at 4.50 percent.

As House Republicans shifted their focus to a balanced budget amendment Friday in order to push through a debt-ceiling raise bill, two analytics companies posted upticks in mortgage rates - a sign that some say the markets feel increasingly unsure about whether the nation will be able to pay its debts come August 2. A Bankrate, Inc. survey reflected a 6-basis point surge to 4.74 percent, with mortgages totaling 0.35 discount and origination points, with Freddie Mac reporting a similar jump.

As splintering debt-ceiling negotiations unnerved analysts and ratings agencies, Treasury yields and mortgage rates remained relatively stable over the weekend, reflecting a widespread consensus among investors and market watchers that partisan divisions would soon give way to a grand bargain between policymakers. CNN reported Sunday that House Speaker John Boehner (R-Ohio) refused to agree to a set of conditions at the White House, ending dramatic four-month-long negotiations.

Fannie Mae released a July economic outlook Friday tying a slowdown in the economy at large to a sluggish pace in the housing sector a consequence of tight credit, a dearth in existing-home sales, and weak gains across important industries. The mortgage giant predicted a dip in growth over the rest of the year, falling from 2.8 percent to 2.4 percent. Besides restrained credit expansion, the tepid housing recovery is another reason for the modest pace of economic growth seen in the current recovery, Fannie said in the report.

Fifth Third Bancorp had a great spring season, judging by the company├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós scorching second quarter numbers. The bank estimates its quarterly results were the best on record since 2007, and the dramatic, 58 percent increase in mortgage banking revenue between the first and second quarters of this year contributed heavily to the company├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós recent success. Total net income during Fifth Third's second quarter was $337 million, demonstrating a significant rise quarter-over-quarter.

On Thursday Bankrate and Freddie Mac released reports with varying conclusions about mortgage rates for this week, with the former posting a slight dip in 30-year fixed-rate mortgages and the GSE reporting few changes from last week. Publishing its Primary Mortgage Market Survey, Freddie Mac yielded a 4.52 percent with an average 0.7 percent for 30-year fixed-rate mortgages, a nominal increase from last week when the same rates lingered at 4.51 percent.

The numbers are in, and New York tops the list of states boasting the highest mortgage closing costs nationwide. The results of the Bankrate, Inc. survey demonstrate New York├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós dubious dominance in closing fees for the second straight year. Other high-cost areas rounding out the top five? Texas, Utah, San Francisco, and Idaho. Nationally, the total cost of origination and title fees has risen since last year by 8.8 percent, to an average cost of $4,070 on a $200,000 mortgage.

Fueling fears about a federal default scenario, fragile debt-ceiling negotiations continued to splinter and stagnate this week, with Republicans refusing to budge on proposed tax increases and Democrats fighting to keep entitlements off the chopping block. If trends continue and the federal government defaults on its national debt, housing economists and mortgage rate analysts predict spikes in interest and mortgage rates, with steep and potentially catastrophic declines in homes sales.

A monthly update from Capital Economics holds that small upticks in home prices and sales reflect anomalous behavior in the market, thanks in part to a generous seasonal uplift. The report predicts continued falls in home sales.

Freddie Mac released a southerly primary mortgage market survey Thursday, revealing downward trends for mortgage rates across the board against a backdrop of anemic job growth and steadily increasing unemployment figures. According to the GSE, 30-year fixed-rate mortgages dipped to 4.51 percent falling from 4.60 percent last week and staying just under the 4.57 percent average it struck last year. The data for 15-year fixed-rate mortgages yielded a fall from 3.75 percent last week to 3.65 percent this week.