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Mortgage Rates Edging Higher Entering 2014

Mortgage Rates Are Moving on Up

Mortgage rates inched higher this week for the second week in a row, with the 30-year fixed-rate mortgage averaging 4.33 percent, Freddie Mac reports in its weekly mortgage market survey.

"Mortgage rates crept up further following the uptick in the 10-year Treasury yield as minutes of the Federal Reserve's last meeting indicated little possibility of a pause in the central bank's reduction of bond purchases,” says Frank Nothaft, Freddie Mac’s chief economist. The Federal Reserve plans to wind down its $85 billion per month bond-buying stimulus program this year, which has been helping to keep mortgage rates low in recent years.

Freddie Mac reports the following national averages for the week ending Feb. 20:

  • 30-year fixed-rate mortgages: averaged 4.33 percent, with an average 0.7 point, rising from last week’s 4.28 percent average. Last year at this time, 30-year rates averaged 3.56 percent.
  • 15-year fixed-rate mortgages: averaged 3.35 percent, with an average 0.7 point, rising from last week’s 3.33 percent average. Last year at this time, 15-year rates averaged 2.77 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.08 percent, with an average 0.5 point, rising from last week’s 3.05 percent average. A year ago, 5-year ARMs averaged 2.64 percent.
  • 1-year ARMs: averaged 2.57 percent, with an average 0.3 point, increasing from last week’s 2.55 percent average. A year ago, 1-year ARMs averaged 2.65 percent.

Source: Freddie Mac

 

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Mortgage Rates Are Moving on Up

February 21, 2014

Mortgage Rates Are Moving on Up

Mortgage rates inched higher this week for the second week in a row, with the 30-year fixed-rate mortgage averaging 4.33 percent, Freddie Mac reports in its weekly mortgage market survey.

"Mortgage rates crept up further following the uptick in the 10-year Treasury yield as minutes of the Federal Reserve's last meeting indicated little possibility of a pause in the central bank's reduction of bond purchases,” says Frank Nothaft, Freddie Mac’s chief economist. The Federal Reserve plans to wind down its $85 billion per month bond-buying stimulus program this year, which has been helping to keep mortgage rates low in recent years.

Freddie Mac reports the following national averages for the week ending Feb. 20:

  • 30-year fixed-rate mortgages: averaged 4.33 percent, with an average 0.7 point, rising from last week’s 4.28 percent average. Last year at this time, 30-year rates averaged 3.56 percent.
  • 15-year fixed-rate mortgages: averaged 3.35 percent, with an average 0.7 point, rising from last week’s 3.33 percent average. Last year at this time, 15-year rates averaged 2.77 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.08 percent, with an average 0.5 point, rising from last week’s 3.05 percent average. A year ago, 5-year ARMs averaged 2.64 percent.
  • 1-year ARMs: averaged 2.57 percent, with an average 0.3 point, increasing from last week’s 2.55 percent average. A year ago, 1-year ARMs averaged 2.65 percent.

Source: Freddie Mac

FHA to drop upper mortgage limits January 1, 2014

December 11, 2013

The U.S. Department of Housing and Urban Development will be reducing the amount of loans for high cost areas of the country.

Beginning on January 1, 2014 all FHA loans will be capped in high cost areas at $625,500, reduced from the current cap of $729,750. FHA will keep its current loan limits in place in areas where housing costs are lower than $271,050. The new loan limit for the highest cost areas will affect about 650 counties, according to the Department of Housing and Urban Development.

FHA insures loans for buyers with down payments as low as 3.5 percent. The agency raised its limits during the financial crisis to help more home buyers, and the program quadrupled as a result. However, it faced mounting defaults and losses.

For more details click here.

FHA

Computer Virus Spreading That Means You Never Get To See Your Files Again

Imagine this. You are browsing the Internet and all of a sudden your browser crashes and a message appears telling you your files are encrypted and if you don’t have over money you are never getting access to your data again – corporate accounts, irreplaceable pictures of your child, you name it. Gone. The majority of trojans over the last few years have had laser focus on stealing data and money from your computer without you realising. However, there are trojans out there that have surprising and nasty behaviours like encrypting your files with a password you don’t have and demanding money to unlock them. This kind of malware is not new but over the past 18 months it has become significantly more prevalent and the malware authors have written significantly more clever and scary versions.

Click here to read the full article on Forbes.com

Obama Lashes Republicans as Government Reopens

In withering day-after criticism, President Barack Obama declared Thursday that the 16-day partial government shutdown was a Republican-provoked spectacle that "encouraged our enemies" around the world.

Elsewhere in Washington, and around the country, federal employees simply streamed back to their jobs. National parks reopened. The popular panda cam at the National Zoo came back online.

But there was no letup in the political fight.

Click here to read the full article from abcnews.com.

What a Government Shutdown Means for REALTORS®

Congress has failed to approve a Continuing Resolution (CR) providing funding for most government operations. Therefore, spending authority for most of the government expired at midnight on September 30, 2013. Until legislation providing for funding is signed into law, many offices and programs of the federal government are now shut down. This means many, but not all, government programs, including some that impact federal housing and mortgage programs, have been suspended or slowed due to the lapse in government funding. The Office of Management and Budget (OMB) requires each agency to have contingency plans in place. The information below is based on NAR staff review of agency agency contingency plans for the current shutdown and past experience with previous shutdowns and near-shutdowns. 

Click here to read the full article from ksefocus.com.