Interest rates have been bouncing around over the last several weeks with an upward trend. Why you may ask? I believe rate fluctuations are based on a number of things, such as what's happening to the yield of 10 year treasuries, the Fed buying $78B in mortgage backed securities each month, but also based on financial data reported daily on the news. Here's an interesting article posted in today's Wall Street Journal that sheds more light on the answer.
"Mortgage rates moved relentlessly higher for the fourth straight day on Thursday, bringing them close to the seven month highs last seen in mid-February".
http://www.mortgagenewsdaily.com/consumer_rates/299123.aspx
Thursday, March 7, 2013
Why IS Mortgage Volume Down When Home Purchase Volume has Risen to 2007 Levels?
The explanation for why home sales have recovered despite lackluster mortgage
origination is that a lot of homes are getting bought in all-cash deals these
days. Across 55 large metropolitan areas that it follows, DataQuick MDA.T -0.18%found that 36% of homes sold last year
were purchased without mortgage financing, compared with 15% in 2007. In some of
the old hotbeds of speculation, the number of homes getting purchased for cash
is eye-catchingly high: In the Miami area, for example, there were 72,459 cash
sales last year, against 19,625 five years earlier.
Tuesday, March 5, 2013
Short Sales ARE UP!
Ironically, more homeowners are short selling their homes. The reason may not be obvious. With inventories low, homeowners feel more comfortable selling their homes and getting lenders to write off payoff shortfalls.
Wall Street Journal, March 5th, 2013
The number of American homes that end up in foreclosure has started to decline, a welcome development that partly reflects an improving housing market.
But a look at data that tracks distressed home sales reveals another reason why foreclosures are becoming less prevalent: More homeowners are turning to so-called short sales—where they sell their homes for less than what they owe in mortgage debt and the bank typically eats the difference.
Wall Street Journal, March 5th, 2013
The number of American homes that end up in foreclosure has started to decline, a welcome development that partly reflects an improving housing market.
But a look at data that tracks distressed home sales reveals another reason why foreclosures are becoming less prevalent: More homeowners are turning to so-called short sales—where they sell their homes for less than what they owe in mortgage debt and the bank typically eats the difference.
MORTGAGE INTEREST RATES ARE RISING
I have been preparing my clients to get their refinances in sooner rather than later as we've seen a trend of rates rising; we're at roughly .25-.375% higher across the board for both conventional fixed rate mortgages and ARMs.
Mortgage rates moved slightly higher again on Tuesday,
continuing a gentle drift higher from the lowest levels in several weeks on
Friday. While yesterday's rates were arguably in line ...
http://www.mortgagenewsdaily.com/consumer_rates/298702.aspx
Friday, March 1, 2013
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