A prospective borrower’s chances of being approved for a loan aren’t fixed. There are times when lending standards are looser and getting a loan is easier. There are also times when there are fewer available loan programs and tighter conditions mean borrowers will need to be more financially secure if they hope to get approved. In other words, mortgage credit availability matters. That’s why the Mortgage Bankers Association tracks it each month with its Mortgage Credit Availability Index. In July, the index rose … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from the week before. Rates were down across most loan categories, including 30-year fixed-rate loans with conforming balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Joel Kan, MBA’s vice president and deputy chief economist, says the decline pushed refinance activity to a four-month high. “The 30-year fixed mortgage rate declined … last week, which … [Read more...]

Just because the vast majority of us say we’d like to be homeowners doesn’t mean we necessarily understand what it takes to get there. The buying process can be stressful – and the challenges don’t end once you’ve closed and have keys to your new place. Just ask recent first-time buyers. According to a new survey, first-time home buyers say they found the process stressful, even more so than finding a job or planning a wedding. They also reported challenges. Among them, almost half said understanding the full scope … [Read more...]

Saving enough money to buy a house has always been a challenge. These days, coming up with a substantial down payment can seem almost impossible – especially for first-time buyers who don’t have the benefit of home-sale proceeds to help fund their purchase. Fortunately, though, buyers don’t have to come up with a full 20-percent down payment in order to qualify for a mortgage and purchase a house. Home buyers with lower down payments can still buy with the help of private mortgage insurance. What is PMI? Well, it’s … [Read more...]

Each month, Fannie Mae’s National Housing Survey asks Americans how they feel about the housing market, economy, and their personal financial situation. The survey is a good gauge of home buying sentiment and tracks whether participants think it’s a good time to buy or sell a home, whether they think mortgage rates and prices will go up or down, whether they worry about losing their job, and whether they believe their personal finances will improve or not over the next year. According to the most recent results, … [Read more...]

Typically, buying something brand new is more expensive than buying it previously owned. That’s certainly true with homes. Older homes are generally more affordable than new construction. That isn’t likely to change. But while new homes are still more expensive than existing homes, the price premium for a new home is now at a record low. In fact, according to a new analysis from The National Association of Realtors’ consumer website, the price premium for new homes dropped to just 7.8 percent during the second … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. The improvement led to boosted mortgage demand, with both refinance and purchase activity up from the previous week. Joel Kan, MBA’s vice president and deputy chief economist, says borrowers took advantage of … [Read more...]

The national median mortgage payment applied for by home buyers fell almost 2 percent in June from the month before, according to newly released data from the Mortgage Bankers Association. The MBA’s Purchase Applications Payment Index measures monthly mortgage payments based on the loans borrowers applied for during the month. In June, the median payment fell to $2,172 from $2,211 in May. For borrowers applying for lower-payment mortgages, payments fell to $1,500 from $1,512. Edward Seiler, MBA’s associate vice … [Read more...]

When the combined total of what you owe on your home is less than half of its estimated value, you’re equity rich. That’s a good thing to be, which is why ATTOM Data Solutions’ most recent U.S. Home Equity & Underwater Report is encouraging news for homeowners. The report found the share of equity rich properties increased during the second quarter of this year after falling the previous three quarters. Rob Barber, ATTOM’s CEO, says that homeowners continue to do well. “With home prices at record highs you’d … [Read more...]

Home prices have followed a pattern so far this year and, according to the latest S&P Case-Shiller Home Price Indices, it shows no sign of changing. S&P’s index – considered among the leading measures of U.S. home prices – found prices up just 2.3 percent year-over-year through the end of May. That’s the slowest annual price increase in two years. It also follows the established pattern, according to Nicholas Godec, head of fixed income tradables & commodities at S&P Dow Jones Indices. “May’s data … [Read more...]