Thirty-year fixed mortgage rates plunged 11 basis points today, while 15-year fixed loans and 5/1 ARMs dropped by four and three basis points, respectively, according to a NerdWallet survey of mortgage interest rates published by national lenders Friday morning.

The sharp drop in mortgage rates is a sign that investors are losing some confidence about economic growth in 2017, says Michael Fratantoni, chief economist and senior vice president of research and industry technology with the Mortgage Bankers Association.

MORTGAGE RATES TODAY, Friday, FEB. 17

(Change from 2/16)
30-year fixed: 4.34% APR (–0.11)
15-year fixed: 3.71% APR (–0.04)
5/1 ARM: 3.80% APR (–0.03)

After the election, mortgage rates rose by 75 basis points on expectations of faster economic growth and somewhat higher inflation, Fratantoni tells NerdWallet. Those expectations drove increases in both the Treasury and mortgage rates, he said.  Since then, rates have stayed in a narrow range between 4% and 4.3% for 30-year fixed loans, he adds.

“Within the last week, we’re hearing more commentary from investors that they’re less confident in items like tax reform and infrastructure moving as quickly as they thought, so they’re pulling back a little bit,” Fratantoni says. “Overall, we’ll see a pullback in the stock market and the trends in mortgage rates.”

It’s unlikely the drop in rates will spur much refinance activity among homeowners, he adds, because many of them refinanced when rates were below 4%. On the purchase side, rates have less of an impact on the decision to buy, which is more dependent on consumers’ confidence in their own economic reality, housing conditions, and signs in the job market, than rate fluctuations, Fratantoni says.

Housing starts dip; building permits up in January

The article Mortgage Rates Friday, Feb. 17: Steep Drop; Building Permits Up originally appeared on NerdWallet.

Realty Solutions Group was built around a simple but elusive concept: provide brokers and clients with the highest level of service in the industry through cutting-edge sales, marketing programs and a culture that values innovation, relationships and a strong local focus.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

As a locally-owned, independent company, Realty Solutions Group is deeply committed to supporting the communities and clients we serve. We are constantly evolving, but remain focused on that one simple idea behind our founding.

We are a full service brokerage with discounted commissions. We offer no long term listing contracts, a Performance Guarantee, Smart Seller Program and a Communication Guarantee. Contact us today and let us provide you with the very best real estate experience.

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Some Highlights:

• Real Cost of Renting vs. Buying? Historically, It has always been a close call when deciding between buying or renting a home.
• When you consider the percentage of income required to rent a median-priced home now (30%), as compared to the percentage required to purchase a median-priced home (15%), the decision becomes much more obvious.
• Because each market is different, find out if you could utilize your housing costs to own a home of your own…Before you renew your lease again!

The February Pending Homes Sales Index, (a leading indicator for the housing sector, based on pending sales of existing homes) from the National Association of Realtors showed a slight increase (1.6%) in homes under contract in December. This is on top of a report that existing home sales are predicted to be 5.54 million in 2017, a 1.7% increase over 2016.  2016 was the best year for home sales in a decade. Bottom line…buyers are looking for homes!

According to NAR’s Chief Economist, Lawrence Yun,

“Pending sales bounded last month as enough buyers fended off rising mortgage rates and alarmingly low inventory levels to sign a contract.”

Buyers are looking for homes, here is the problem! 

Buyers are searching for existing homes for sale, but are having a hard time finding them as the supply of homes for ale is not keeping up with buyer demand!

Yun explained,

“The main storyline in the early months of 2017 will be if supply can meaningfully increase to keep price growth at a moderate enough level for households to absorb higher borrowing cost. Sales will struggle to build on last year’s strong pace if inventory conditions don’t improve.”

What does this mean? 

Buyers are out in force and competing against each other right now! If you are considering selling your home this year, we are strongly suggesting you put it on the market now! Please contact us so we can discuss how you can make the most of the current market conditions.

We are often asked, “What is the future of home-ownership?” The recent Housing Pulse Survey by the National Association of Realtors showed that the top two significant reasons that Americans prefer owning instead of renting are:

1. The desire to build long term equity
2. The desire to raise their family in a safe and stable environment.

Building Equity

A recent article by The Mortgage Reports, was quoted:

“buying and owning a home is the essence of ‘The American Dream.’ Each month, your housing payments go toward owning your home instead of renting it; building your personal wealth and assets instead of someone else’s.

History has shown that homeownership is a clear path to wealth-building, with homeowners boasting a net worth [that is] multiples higher than the net worth of renters.”  

Family Security and Stability 

Does in fact owning your own home really create a more secure and stable environment for you and family?

A recent survey of property managers by rent.com showed the two reasons tenants are less stable with their housing arrangement:

• 68% of property managers think that average rents will rise in 2017 by 8%.
• 53% of property managers said that they were more likely to sign a lease with a new tenant than to negotiate and renew a lease with a current tenant.

It is obvious that these survey results show that renting will prove to be anything but a stable and secure environment in the coming years.

To sum it up!

We believe that in the future, Homeowners will enjoy a more stable and secure environment, while at the same time build their family’s net worth!

The housing crisis is now history as the real estate market continues to move to a complete recovery. Real estate values are up and sales are rising. Short sales and foreclosures have fallen drastically. Inventory is low. The housing market  is once again racing forward. There is one thing that may cause the industry to throttle back though… a low inventory of homes.

Even though buyer demand remain strong through the winter, supply continues to be low.

Some comments from industry experts: 

National Association of Realtors

“Total housing inventory at the end of December dropped 10.8%…which is the lowest level since NAR began tracking the supply of all housing types in 1999. Inventory has fallen year-over-year for 19 straight months and is at a 3.6-month supply at the current sales pace.”

Jonathan Smoke, Chief Economist for Realtor.com

“More than two-thirds of the markets are seeing less inventory now compared to a year ago.”

 Chief Economist at NAR -Lawrence Yun

“The dismal number of listings in the affordable price range is squeezing prospective first-time buyers the most. As a result, young households are missing out on the wealth gains most homeowners have accrued from the 41% cumulative rise in existing home prices since 2011.”

Deputy Chief Economist at CoreLogic -Sam Khater

“The lack of affordable supply is really driving up home prices.”

 Chief Economist for Realtor.com –Jonathan Smoke

“More than two-thirds of the markets are seeing less inventory now compared to a year ago.”

To Sum It All Up:

If you are considering selling, now is the time. Buyer demand for your property will be strong during the time little competition exists from other sellers. If priced and marketed correctly, that very well could lead to what every seller desires: A quick sale for maximum price.

Thirty-year fixed and 15-year fixed rates were lower today, while 5/1 ARM rates held firm, according to a NerdWallet survey of mortgage interest rates published by national lenders Friday morning.

Mortgage Rates Today,
Friday, Feb. 3

(Change from 2/2)
30-year fixed: 4.38% APR (-0.05)
15-year fixed: 3.76% APR (-0.02)
5/1 ARM: 3.81% APR (NC)

Latest employment report a mixed bag for mortgage rates

The Bureau of Labor Statistics issued its non-farm payroll report today, with total employment soundly beating expectations. Jobs increased by 227,000 in January, exceeding economists’ forecasts of 175,000. The unemployment rate was mostly unchanged at 4.8%.

The U.S. stock market cheered the favorable jobs news, blasting out of the gate with solid gains at Friday’s open.

>> MORE: Calculate your refinance savings

However, wage growth fell short of expectations, and the bond market keyed off of that news more than employment growth. Yields on the 10-year Treasury, a common proxy for mortgage rates, were slightly lower in early trading.

“Job growth is critical in a rising interest rate environment. Every 10 basis point (0.10%) rise in mortgage rates can shave off approximately 35,000 in home sales annually. That is why today’s solid job addition of 227,000 is very comforting,” Lawrence Yun, National Association of Realtors chief economist, said in a statement.

Yun took particular note of the increase of 36,000 jobs in construction.

“With 170,000 construction jobs added over the last 12 months, builders are increasing capacity, which should translate into continued home building. This is necessary to help increase the low housing inventory in much of the country,” he said.

Doug Duncan, chief economist for Fannie Mae, found a mix of good and not-so-good news in the report.

“Today’s jobs report was largely positive, showing a pickup in hiring and in the labor force participation rate,” Duncan said in a statement. “There are a few blemishes, however, including downward revisions in the prior months’ payrolls and weakening wage gains.”

Mortgage rates may gain little direction with the mixed bag of news from the employment report.

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

More from NerdWallet
The pros and cons of home equity lines of credit
Best lenders for FHA loans
Calculate your monthly mortgage payment

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: [email protected]. Twitter: @halmbundrick.

The article Mortgage Rates Friday, Feb. 3: Lower; Jobs Report Brings Mixed News for Rates originally appeared on NerdWallet.

Realty Solutions Group was built around a simple but elusive concept: provide brokers and clients with the highest level of service in the industry through cutting-edge sales, marketing programs and a culture that values innovation, relationships and a strong local focus.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

As a locally-owned, independent company, Realty Solutions Group is deeply committed to supporting the communities and clients we serve. We are constantly evolving, but remain focused on that one simple idea behind our founding.

We are a full service brokerage with discounted commissions. We offer no long term listing contracts, a Performance Guarantee, Smart Seller Program and a Communication Guarantee. Contact us today and let us provide you with the very best real estate experience.

Powered by WPeMatico

Thirty-year fixed, 15-year fixed and 5/1 ARM rates were all lower today, according to a NerdWallet survey of current mortgage rates published by national lenders Thursday morning.

As was widely anticipated, the Federal Reserve left short-term interest rates unchanged yesterday. With a couple of positive reports on the economy lately, pressure is building for mortgage rates to move higher. Generally, good news for the economy is bad news for mortgage rates.

After moving higher two weeks ago, rates for 30-year fixed-rate loans have been bouncing within a narrow range. A strong jobs report from the Department of Labor tomorrow could break the recent meandering rate trend.

Mortgage Rates Today,
Thursday, Feb. 2

(Change from 2/1)
30-year fixed: 4.43% APR (-0.02)
15-year fixed: 3.78% APR (-0.05)
5/1 ARM: 3.81% APR (-0.01)

FHA loan applications plunge after fee discount reversal

Home loan applications sank 3.2% for the week ending Jan. 27, according to the Mortgage Bankers Association’s weekly survey. Driving a large part of the week’s fallback was a significant decline in FHA loan applications.

>> MORE: Best lenders for FHA loans

“Following the decision to suspend a proposed decrease in the FHA mortgage insurance premium, FHA refinance applications dropped more than 25%, while FHA purchase applications fell almost 6%,” Michael Fratantoni, chief economist for the MBA, told CNBC.

Overall, considering conventional as well as government-backed loans, purchase applications fell 6% and refinance volume fell 1% from the week prior.

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

More from NerdWallet
Calculate your refinance savings
The pros and cons of home equity lines of credit
How much home can you afford?

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: [email protected]. Twitter: @halmbundrick.

The article Mortgage Rates Thursday, Feb. 2: Lower Today; FHA Applications Plummet originally appeared on NerdWallet.

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Imagine mortgage credit standards as a roadway, connecting lenders with potential borrowers who dream of owning a home. What in the mid-2000s was a wide-open superhighway with few barriers became, after the 2008 housing crash, a one-lane path open only to the most credit-qualified.

As loan defaults multiplied and banks collapsed, lenders abruptly lost their appetite for risk and abandoned their former “if you breathe, you qualify” loan standards. The Urban Institute says lenders would have issued an additional 6.3 million mortgages between 2009 and 2015 “if lending standards had been more reasonable” — for example, like the pre-housing-crisis home loan requirements of 2001.

With such stringent loan criteria in place, homeownership rates in the U.S. fell sharply, especially for minority households, according to the Pew Research Center.

» MORE: Building financial health in the black community

“Black and Hispanic households today are still far less likely than white households to own their own homes — 41.3% and 47%, respectively, versus 71.9% for whites — and the homeownership gap between blacks and whites has widened since 2004,” Drew DeSilver, a senior writer at Pew Research Center, wrote in a recent report.

Pew research finds that black and Hispanic home buyers have a harder time qualifying for conventional mortgages than white and Asian applicants — and when approved, are typically charged higher interest rates.

In September 2016, Fannie Mae, the government-sanctioned company that buys many of the mortgages that lenders issue, unveiled two new credit scoring initiatives in its underwriting process. Here’s what those changes may mean, especially to borrowers of color.

Trended credit data

Fannie Mae’s automated loan-underwriting system is how nearly 2,000 lenders determine whether a borrower qualifies for a mortgage. Among upgrades put in place late last year was the integration of “trended credit data.” This takes credit reporting beyond simply noting “yes” or “no” as to whether you paid a bill on time each month.

Trended data “actually takes into account the amount you pay, the level of revolving debt that you have and how that relates to your total available debt,” says Mike Mondelli, senior vice president of TransUnion’s alternative data services. It also compares the amount you paid with what the minimum due was.

It’s a 24-month snapshot of borrowers’ payment patterns. That allows lenders to better predict how borrowers might pay their bills going forward.

For example, consider two borrowers. One pays off the full balance each month or makes a payment higher than the minimum amount due. Another makes only the minimum payment due. Both pay on time, but if all else is equal, trended data might help a lender conclude that the first borrower is a lower credit risk.

Use of trended data could move “about 23 million people from a nonprime to a prime score categorization,” Mondelli says.

In 2015, more than one-quarter (27.4%) of black applicants were turned down for home loans, most commonly because of credit history issues, according to Pew research. And people with subprime scores — generally considered to be below 670 — pay higher interest rates.

» MORE: Check your free credit score

Alternative credit data

The updated Fannie Mae system also incorporates some alternative credit data, such as rent and utility payments, when it’s available. Mondelli says that information is just beginning to come into play.

While credit and debit card companies have been adopting alternative credit data, mortgage lenders “are the last” to make such moves, Mondelli says.

Trended data is the focus for now, particularly for mortgage lenders.

Addressing the cause of tight credit

Karan Kaul, a research associate for the Housing Finance Policy Center at the Urban Institute, doubts if either initiative will have a significant impact on minority homeownership.

“It is a step in the right direction, and I think we need this step. We always want to improve our credit scoring models,” Kaul says. “But at the same time … this doesn’t address the root cause of why credit is tight.”

Urban Institute research says lenders, for the most part, are still shying away from loosening lending restrictions because the scars of the housing crash remain fresh. And lenders are concerned about continued legal action and default risks.

“The issue of tight credit is a structural problem that is, unfortunately, at this point deeply embedded into the mortgage market, and it’s going to require a multipronged strategy,” Kaul says.

Are minority borrowers getting a break?

Still, there may be some hope for minority borrowers. Mindy Armstrong Kielmeyer, senior product manager at Fannie Mae, says all 1,800 lenders that use its underwriting system have access to the upgrades.

“Trended credit data provides additional information that we can take into consideration when a borrower is on the border of getting an ‘Approve’ recommendation,” Kielmeyer says. “Since its implementation, we have seen hundreds of loan applications underwritten using this enhancement.”

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: [email protected]. Twitter: @halmbundrick.

The article Credit Scoring Changes May Smooth Path to Homeownership for Blacks originally appeared on NerdWallet.

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Thirty-year and 15-year fixed mortgage rates stepped higher today, while 5/1 ARM rates sagged slightly, according to a NerdWallet survey of mortgage interest rates published by national lenders Wednesday morning.

The bond market will be looking to the Federal Reserve for direction today. While the central bank is expected to stand pat on short-term interest rates, a surprise hike could jolt mortgage rates higher. The Fed will announce its decision at 2 p.m. Eastern time Wednesday.

---

Mortgage Rates Today,
Wednesday, Feb. 1

(Change from 1/31)
30-year fixed: 4.45% APR (+0.02)
15-year fixed: 3.83% APR (+0.01)
5/1 ARM: 3.82% APR (-0.02)

Government crackdown on real estate kickbacks

The Consumer Financial Protection Bureau slapped a $3.5 million fine on Prospect Mortgage Tuesday, claiming the lender made illegal payments for loan referrals to more than 100 real estate brokers and a mortgage servicer.

“Today’s action sends a clear message that it is illegal to make or accept payments for mortgage referrals,” Richard Cordray, the CFPB director, said in a release. “We will hold both sides of these improper arrangements accountable for breaking the law, which skews the real estate market to the disadvantage of consumers and honest businesses.”

>> MORE: The pros and cons of home equity lines of credit

Named in the CFPB action, in addition to Prospect Mortgage, were ReMax Gold Coast, based in Ventura, California, and Keller Williams Mid-Willamette of Corvallis, Oregon. The companies were two of more than 100 real estate brokers alleged to have been referring borrowers to Prospect Mortgage and receiving illegal fees in return, according to the CFPB.

Planet Home Lending was also named in the consent order, blamed for steering refinance business to Prospect for a cut of the sales.

While it is common for real estate agents and brokers to recommend services to home buyers, it is illegal to accept fees or kickbacks for referrals. The law encompasses not only lending, but all loan settlement services, including title insurance, inspections and appraisals.

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

More from NerdWallet
How much house can I really afford?
Best lenders for FHA loans
Calculate your monthly mortgage payment

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: [email protected]. Twitter: @halmbundrick.

The article Mortgage Rates Wednesday, Feb. 1: Small Moves; Fed Decision Day; Crackdown on Kickbacks originally appeared on NerdWallet.

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