Big Mortgage Leads Blog

Historically Low Mortgage Rates

noreply@blogger.com (BigMortgageLeads) — Fri, 05 Mar 2010 21:32:00 +0000

Mortgage rates for 30-year home loans fell below 5% again this week according to the mortgage company Feddie Mac.

According to the LATimes.com the low rates have been engineered by the federal government in response to the deep recession. Not since the 1950s have rates remained so low for so long, said Greg McBride, a senior financial analyst at Bankrate.com, citing data from the National Bureau of Economic Research.

December shows .3% increase in Home Prices

noreply@blogger.com (BigMortgageLeads) — Thu, 25 Feb 2010 19:12:00 +0000

Across the U.S. housing prices rose .3%. This is the seventh straight month that there has been an increase. Although a few cities showed declines in home prices over all it seems as though the country is take step to a recovery.

On a quarterly basis, U.S. home prices fell 2.5% compared with the fourth quarter of 2008.

Have we Hit Bottom?

noreply@blogger.com (BigMortgageLeads) — Tue, 26 Jan 2010 22:24:00 +0000

The CEO of Freddie Mac believes that the housing market has finally hit bottom, though there is fear that the new wave of foreclosure coming through could hurt the recovery. In addition Haldeman the CEO of Freddie Mac said he expected the 30-year fixed mortgage rate to remain between 5 and 6 percent throughout 2010. Leading industry analyst are still divided on how the recovery will go.

Mortgage Rates a Little Lower

noreply@blogger.com (BigMortgageLeads) — Fri, 15 Jan 2010 18:19:00 +0000

Fixed 30 year mortgage interest rates went down slightly but remain about 5% for the forth week in a row. Fixed 15 year mortgage rates were also down slightly from 4.50% to 4.45%. This is a popular mortgage for those who are refinancing, and looking to pay off their home quicker. The 5% rate may not last for long, as many people predict that rates will increase this year.

House Prices Down in Most Areas

noreply@blogger.com (BigMortgageLeads) — Tue, 29 Dec 2009 22:19:00 +0000

Although there is some hope in the housing market with sales up, housing prices are still pretty flat. This is of course with the exception of larger California cities that posted solid gains with Los Angeles up 0.7%, San Diego up 1.1% and San Francisco up 1.7%. Areas such as the Inland Empire and San Bernandino still are showing losses.

Among the hardest hit was Las Vegas which has seen no signs of improvement this year. Many believe that Las Vegas is going to have problems for quite sometime, mainly because tourism is down so far, and there is little sign of improvement.

Mortgages Underwater

noreply@blogger.com (BigMortgageLeads) — Wed, 25 Nov 2009 18:20:00 +0000

A recent report shows that over 10 million homeowners owe more on their home then they are worth. Many are taking it as a sign of more foreclosures to come. As values continue to plummet more and more homeowners will end up in this situation. California, Nevada, Arizona, Florida, and Michigan are among the states that has the highest rate of underwater mortgages.

According to CNN, "these five states have been especially beleaguered because of a high rate of prime loans that went bad. Many of those loans were option-adjustable rate mortgages, in which borrowers could choose to make minimum payments that were so low they did not even offset the interest being accumulated."

No More Closing Costs

noreply@blogger.com (BigMortgageLeads) — Mon, 09 Nov 2009 22:27:00 +0000

Some good news for home buyers and those who want to refinance, HUD is working on eliminating those surprise closing costs that often come-up last minute. HUD is hoping that by January 1st this situation that so many people find themselves in, will be a thing of the past. Bank and mortgage lobbies are pushing for a delay on this change. The changes that are to be set in place include:

* Fees that cannot increase from upfront estimates to final closing.

* Fee estimates that come with wiggle room, and can increase by as much as 10% in the aggregate from upfront estimates.

* Fees that can increase without limit, mainly because the lender has no control over them or because the amount is difficult to predict weeks in advance.

Mortgage Rates up a Little Above 5%

noreply@blogger.com (BigMortgageLeads) — Thu, 22 Oct 2009 16:24:00 +0000

Low mortgage rates maybe a thing of the past as the average rate on a 30 year-fixed-rate home loan rose above 5% last week. According to an L.A. Times Article: "The average rate on a 30-year fixed-rate loan, assuming a 20% down payment, increased to 5.02% from 4.89%."

The average 15-year rate rose as well from 4.32% to 4.44%. Applications for purchase loans slipped 5% last week from the previous week, the bankers group said. Applications for refinance loans, which have made up about two-thirds of the total recently, edged down 0.1%. The decline in overall applications was 1.8%.

It's a Home not an ATM

noreply@blogger.com (BigMortgageLeads) — Tue, 06 Oct 2009 18:41:00 +0000

One thing that many people have learned from the downturn of the housing market is that homes are not personal ATM's and should not be used as an engine of personal wealth.

The Purchase of a home can not longer be looked at as an investment for the future and something that should be remembered is: a home purchase ought to be considered with the same warning issued to investors in securities: Past performance is not indicative of future results.

Many people went into home buys with the idea that they would come away making money, but in most cases following a trail of refinances people are underwater.

Los Angeles Loan Mod Event

noreply@blogger.com (BigMortgageLeads) — Fri, 25 Sep 2009 23:16:00 +0000

Over 50,ooo homeowners are expected to attend an event at the Los Angeles Convention Center, hoping to receive assistance on their mortgage loans. The five-day event was organized by Neighborhood Assistance Corp. of America is free. Counselors at the event will be scanning attendee's morgage documents to nearly 2,000 on-site serviceers and lenders, who will work to negotiate a better loan. The event is being funded by federal grants and is said to cost close to $1 million.

Obama Promoting Refinancing

noreply@blogger.com (BigMortgageLeads) — Tue, 08 Sep 2009 22:57:00 +0000

Many homeowners are looking for ways to make their mortgage more affordable, with interest rates resting at 5% this is one of the best times in recent history to refinance. These low rates are mostly due to Obama's push to keep interest rates low and give homeowners an opportunity to jump back from the economic down turn. Although not everyone qualifies for that 5% rate there are plenty of options out there to lower the monthly payment.

More than 20% Are Underwater

noreply@blogger.com (BigMortgageLeads) — Thu, 14 May 2009 20:08:00 +0000

An industry report shows that more than 20% of American homeowners owe more on their mortgage than they are able to sell it for.

The majority of this underwater status was found in California and Las Vegas, where the housing market was sky rocketing only a few years ago. According to the report; in Las Vegas 67.2% of homeowners would have to bring cash to the table if they sold their homes. Other markets are Stockton, Calif., where 51.1% of homes are underwater, and Modesto, Calif., where 50.8% of homes are in that position.

Rates Offer Relief

noreply@blogger.com (BigMortgageLeads) — Thu, 30 Apr 2009 21:14:00 +0000

Homeowners can take a little load off as mortgage rates continue to stay low. According to Freddie Mac, "Half of the borrowers who refinanced loans in the first quarter this year lowered their annual mortgage interest rate by at least 20%"

An economist from Freddie Mac reported that after refinancing, homeowners saved $160 per month on a $200,000 loan as a result of lower mortgage rates.

Obama Welcomes New Lending

noreply@blogger.com (BigMortgageLeads) — Fri, 10 Apr 2009 23:13:00 +0000

President Obama expressed his approval of new lending this week as homeowners visited the White House, he said the government's efforts to drive down interest rates had fueled a surge in refinancing -- putting money into many homeowners' pockets during the current economic crisis.

The one draw back to the new surge in refinances is that most all the refinancing so far involves borrowers with conventional mortgages who are not in serious financial trouble. The president's own programs for helping troubled homeowners are just beginning to get off the ground.

Obama at his meeting also warned against the mortgage refinancing scams that abound.

Mortgage Rates at 52 Year Low

noreply@blogger.com (BigMortgageLeads) — Thu, 26 Mar 2009 22:56:00 +0000

Home mortgage rates dropped to a 52 year low as fixed mortgages rates dipped to 5.19%, which is the lowest rate since 1956. The 15 year fixed mortgage rates fell to 4.86%. These drops have caused a surge of interest in refinancing.

Mortgage Fraud Reports up 26 Percent

noreply@blogger.com (BigMortgageLeads) — Mon, 16 Mar 2009 22:59:00 +0000

The mortgage fraud increase comes as lenders go on the defensive as the housing crisis deepens, they have dramatically tighten their standards making it nearly impossible for borrowers to qualify for home loans, with out placing a very large down payment and proof of excellent credit and income.

As a result of these stringent standards more than 60% of the mortgage fraud cases stemmed from falsified applications, 28% came from tax returns or financial statements, and the rest come from appraisals. People are becoming more desperate and doing whatever they can to get what they need.

Mortgage Rates Fall A Bit

noreply@blogger.com (BigMortgageLeads) — Fri, 13 Mar 2009 17:44:00 +0000

Freddie Mac released the results of their primary mortgage market survey. The survey shows that a 30 year fixed rate mortgage averaged 5.03%. It's down from last weeks average of 5.15%, and down much further from last year 6.15%.

Housing Construction at 17 Year Low

noreply@blogger.com (BigMortgageLeads) — Wed, 17 Sep 2008 15:52:00 +0000

The depleting housing market has taken a toll on many sectors, this includes, not suprisingly the construction of new homes and apartments. The levels of construction have decreased drastically over the last few years, and have now reached a 17 year low in August.

This 6.2 percent decrease in housing construction was reported Wednesday by the Commerce Department. This is the slowest rate since 1991, which was another tough period for housing.

The Government Steps in

noreply@blogger.com (BigMortgageLeads) — Mon, 08 Sep 2008 17:48:00 +0000

As the mortgage giants Freddie Mac and Fannie Mae fell further in to trouble the federal government stood by debating what should be done. Some believed that the companies needed to fail in order to preserve the economy. While many others thought that it was time some one stepped in.

Luckily for Fannie, Freddie, homeowners, and investors alike the government chose to step in over the weekend.

So what does this all mean?" Mortgage rates will fall slightly, but is not expected to fall enough to stop the decline in house prices. There may be a new set of rules implemented on the way that mortgage loans are given.

A few advantages to this takeover is that delinquent borrowers may have a better chance at modifying their loan, and the hope is that with mortgage rates lowering that the number of home buyers may increase, which may help stabilize the market a bit more... We could all hope this is the case.

Financial Institutions Need to Fail

noreply@blogger.com (BigMortgageLeads) — Wed, 03 Sep 2008 17:37:00 +0000

Federal Officials say they must let financial institutions fail for the sake of the economy. Thomas M. Hoenig, the President of the Federal Reserve Bank of Kansas City reportedly said for economies to work best institutions must be allowed to fail.

There has been an ongoing debate as to whether the federal government should step in to save financial institutes such as Freddie Mac and Fannie Mae following the sub-prime mortgage crisis that has swept the nation.

Mr. Hoenig, explained that financial crises will happen despite any efforts to prevent them from happening. Although it is agreed that one cannot have control over everything. Many also agree that there were many things, which could have been handled differently in order to prevent the sub prime mortgage crisis. Which is why it may be wise for the federal government to step in before it worsens.

Mr. Paulson says No to helping Fannie and Freddie

noreply@blogger.com (BigMortgageLeads) — Mon, 11 Aug 2008 19:21:00 +0000

The U.S. Tresury Secretary, Henry Paulson, stated on Sunday's Meet the Press that he has no plans to bail out mortgage companies Fannie Mae and Freddie Mac, as they both struggle with their earnings.

A plan was established last month by Congress and the Tresury Department to help support Fannie Mae and Freddie Mac. The plan would allow the Treasury to buy the companies shares. Many analyst have thought that Mr. Paulson would have to act, as the housing crisis worsens. But it seems that Mr. Paulson thinks otherwise.

Effects of the New Housing Bill

noreply@blogger.com (BigMortgageLeads) — Wed, 30 Jul 2008 16:22:00 +0000

A new bill set to be signed by the President later this week will allow the federal government to step in and help the collapsing housing market. The bill will grant the Treasury Department the ability to safeguard two of the nations largest mortgage finance giants (Fannie Mae and Freddie Mac) from collapsing. It is said to be the boldest attempt to aide troubled borrowers since the New Deals Home Owners’ Loan Corporation in 1933.

As the government moves in to offer relief the banks will have the opportunity to supply the homeowner with refinanced loans and loan modifications, and keep the foreclosure rates from sky rocketing further than they have already.

If all goes as planned at risk borrowers will be able to get a handle on their unbearable mortgages with a fixed rate loan insured by the FHA. All in all it is a good move forward for the state of the country. It may even be a good deal for mortgage brokers who are assisting homeowners on closing deals with a refinance or loan modification.

Viva LeadsCon!

noreply@blogger.com (BigMortgageLeads) — Thu, 03 Apr 2008 17:03:00 +0000

We're off to the first annual LeadsCon show in fabulous Las Vegas. Check back next week for a recap of the event. Looking forward to hanging with all the buyers, sellers and service providers who make lead gen such a fun space.

Time for a Refresher Course?

noreply@blogger.com (BigMortgageLeads) — Thu, 13 Mar 2008 16:54:00 +0000

It could be time for mortgage brokers to hit the books. New compliance and licensing standards may be on the horizon.

Today, Treasury Secretary Henry Paulson proposed that imposing tougher standards on mortgage brokers could help us dig out of this current credit mess. He's asking for "strong nationwide licensing standards" for mortgage brokers in order to instill confidence back into the market.

"Regulations needs to catch up with innovation and help restore investor confidence but not go so far as to create new problems, make our markets less efficient or cut off credit to those who need it," Paulson said.

How do you feel about nationwide licensing standards? In one respect, a nationwide plan could help brokers do more business across a variety of states and also cut down on redundant paperwork and compliance issues that arise up from doing business in multiple states. On the other hand, would turning over licensing to the Feds cause more problems by installing a one-size-fits-all policy that discounts local differences in real estate markets? I guess we'll have to wait and see exactly what the "tougher standards" are before making a decision. In the meantime, it might not be a bad idea to dig out your Real Estate Principals textbook.

On a side note, is anyone else distracted by Paulson's resemblance to 2-time AL MVP Cal Ripken Jr.?

Will the real Treasury Secretary please stand up?

The Fed Steps In

noreply@blogger.com (BigMortgageLeads) — Tue, 11 Mar 2008 17:01:00 +0000

Today, the Fed moved to add liquidity to the credit markets. To make a long story short, they are allowing investment houses and banks to buy ultra-safe US Treasury Bonds in in exchange for debt that includes risky and out-of-favor mortgage-backed securities.

"Pressures in some of these markets have recently increased again," the Fed said in a statement. "We all continue to work together and will take appropriate steps to address those liquidity pressures." The other banks involved are the Bank of Canada, the Bank of England, the European Central Bank and the Swiss National Bank.

How will this affect brokers? With the Fed's move today and the recent increases in the FHA and Conventional loan amounts there is definitely an ability to do more deals than there was just a few weeks ago.

Now is the time to work on increasing your business. Get out there and close more loans!