By Holden Lewis • Bankrate.com
Money costs a lot more today than it did just three months ago. The average rate on a 30-year, fixed-rate mortgage is flirting with 7 percent and is almost half of a percentage point higher than it was at the end of March.
The benchmark 30-year fixed-rate mortgage rose 10 basis points to 6.93 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.34 discount and origination points. One year ago, the mortgage index was 5.61 percent; four weeks ago, it was 6.72 percent. The last time the mortgage index was higher was April 18, 2002, when it was 6.96 percent.
The 15-year fixed-rate mortgage rose 12 basis points to 6.57 percent. The 5/1 adjustable-rate mortgage rose 10 basis points to 6.59 percent.
Friday, June 30, 2006
Saturday, June 24, 2006
Mortgage Rates Hit 4-Year High
Refinancing's share of all loan applications slipped to 35.5 percent last week from 35.7 percent the previous week, and was down 43 percent from the same time last year, according to the Mortgage Bankers Association.
The MBA says its Market Composite Index, a measure of mortgage loan application volume, last week declined 0.8 percent to 567.6.The average rate on a 30-year, fixed-rate mortgage jumped to 6.73 percent, the highest it’s since May 2002. The average rate for a 15-year, fixed-rate mortgage increased to 6.37 percent and a one-year ARM increased to 6.22 percent.
REALTOR® Magazine Online
The MBA says its Market Composite Index, a measure of mortgage loan application volume, last week declined 0.8 percent to 567.6.The average rate on a 30-year, fixed-rate mortgage jumped to 6.73 percent, the highest it’s since May 2002. The average rate for a 15-year, fixed-rate mortgage increased to 6.37 percent and a one-year ARM increased to 6.22 percent.
REALTOR® Magazine Online
Monday, June 19, 2006
Annual Harvard Study Reports Sharp Drop Unlikely for Real Estate Market
Harvard Releases the 2006 State of the Nation’s Housing Report
With interest rates rising and speculative demand cooling, the housing boom is coming under pressure, finds this year’s State of the Nation’s Housing report.
As long as the economy continues to create jobs and builders trim production to match slowing demand, house prices will keep climbing and the housing sector will likely achieve a soft landing. Although house price growth will likely moderate in many areas, sharp drops in house prices are unlikely anytime soon. Major house price declines seldom occur in the absence of severe overbuilding, major job loss, or a combination of heavy overbuilding and modest job loss. Fortunately, these preconditions are nowhere in evidence across the nation’s metropolitan areas.
Even with higher interest rates and home prices crimping affordability, the lure of house price appreciation continues to draw homebuyers to the market. While the national homeownership rate edged down a tenth of a percent in 2005, it increased in the West and Northeast where house price growth was the strongest. In fact, about 1 million homeowners were added nationally last year. Mortgage innovations such as low-downpayment, hybrid-adjustable, and interest-only loans helped blunt the impact of higher home prices and interest rates.
"While homeowners with annually adjusting mortgage rates are facing interest increases this year, including those with expiring teaser discounts, only about one in 10 homeowners face higher mortgage payments this year” remarks Nicolas P. Retsinas, director of Harvard’s Joint Center for Housing Studies. Fully eight in 10 owners has no mortgage or a fixed-rate mortgage, and most owners with adjustable loans have an initial fixed-rate period of three or more years. Similarly, most interest-only loans extend for at least five years, leaving ample time to move, refinance, or incomes to grow before principal payments start coming due.
Harvard’s Joint Center for Housing Studies is the nation’s leading center for information and research on housing in the United States. Established in 1959, the Joint Center is a collaborative unit affiliated with the Harvard Design School and the Kennedy School of Government. The Director of the Joint Center for Housing Studies is Nicolas P. Retsinas. The Center’s research and additional information about its programs and activities are available at www.jchs.harvard.edu.
With interest rates rising and speculative demand cooling, the housing boom is coming under pressure, finds this year’s State of the Nation’s Housing report.
As long as the economy continues to create jobs and builders trim production to match slowing demand, house prices will keep climbing and the housing sector will likely achieve a soft landing. Although house price growth will likely moderate in many areas, sharp drops in house prices are unlikely anytime soon. Major house price declines seldom occur in the absence of severe overbuilding, major job loss, or a combination of heavy overbuilding and modest job loss. Fortunately, these preconditions are nowhere in evidence across the nation’s metropolitan areas.
Even with higher interest rates and home prices crimping affordability, the lure of house price appreciation continues to draw homebuyers to the market. While the national homeownership rate edged down a tenth of a percent in 2005, it increased in the West and Northeast where house price growth was the strongest. In fact, about 1 million homeowners were added nationally last year. Mortgage innovations such as low-downpayment, hybrid-adjustable, and interest-only loans helped blunt the impact of higher home prices and interest rates.
"While homeowners with annually adjusting mortgage rates are facing interest increases this year, including those with expiring teaser discounts, only about one in 10 homeowners face higher mortgage payments this year” remarks Nicolas P. Retsinas, director of Harvard’s Joint Center for Housing Studies. Fully eight in 10 owners has no mortgage or a fixed-rate mortgage, and most owners with adjustable loans have an initial fixed-rate period of three or more years. Similarly, most interest-only loans extend for at least five years, leaving ample time to move, refinance, or incomes to grow before principal payments start coming due.
Harvard’s Joint Center for Housing Studies is the nation’s leading center for information and research on housing in the United States. Established in 1959, the Joint Center is a collaborative unit affiliated with the Harvard Design School and the Kennedy School of Government. The Director of the Joint Center for Housing Studies is Nicolas P. Retsinas. The Center’s research and additional information about its programs and activities are available at www.jchs.harvard.edu.
Friday, June 16, 2006
School’s out and the livin’ is easy—this summer, make travel a family affair
School’s out and the livin’ is easy—According to the travel editors at VacationIdea.com, picking the right vacation will allow you to bond with your kids, explore new places and who knows…maybe even relax! Here are some of their top suggestions:
Go Western Dude ranches in the United States and Canada offer many programs that children can enjoy, such as horseback riding, river rafting, fishing, swimming and wildlife watching. In the evenings, join a cookout while your kids roast marshmallows over a campfire. There are numerous ranches to choose from based on vacation activities and prices. You can find information about western ranches at the Dude Ranchers’ Association Web site at www.duderanch.org. This association only accepts ranches that pass its two-year screening process. You can look up ranches by state, read about activities offered at each ranch and compare prices. You can order a free dude ranch directory by calling (307) 587-2339. Another Web site you can use is www.ranchweb.com. This Web site lists ranches in the United States and Canada. It lets you find ranches that offer kid’s programs, luxury accommodations, golf, fishing and other activities.
Spout off Some of the best summer whale watching destinations are: Cape Cod, California Coast, Baja California and Vancouver Island. Many tour operators offer boat tours that last several hours during which you will have a chance to spot whales. Choose a boat tour that provides a whale specialist to tell you more about whales and answer your questions.
History lessons Whether you like camping or day trips, take a look at the National Park Service Web site to find parks near you. The Web site lets you search for parks by activity interests and location. You can also browse interactive maps of all U.S. states, view photo galleries of individual parks and find detailed information about getting there.
For family vacationers, it usually makes sense to purchase a National Parks Pass for $50. The pass will admit you and any accompanying passengers in a private vehicle. You can call (888) GO-PARKS or order the Pass online at the National Park Service Web site.
Bright lights According to the Travel Industry Association of America (TIA), travelers’ interest in visiting large cities is down 4% from last summer. This means that you should be able to find better hotel rates and fewer crowds. Large cities like New York or Washington, D.C. offer many museums, theater performances and famous sights. In New York, see a Broadway show, visit the Central Park Zoo and tour the American Museum of Natural History. For more information about visiting New York City and to browse summer savings’ packages, see www.nycvisit.com.
Source: VacationIdea.com.
Go Western Dude ranches in the United States and Canada offer many programs that children can enjoy, such as horseback riding, river rafting, fishing, swimming and wildlife watching. In the evenings, join a cookout while your kids roast marshmallows over a campfire. There are numerous ranches to choose from based on vacation activities and prices. You can find information about western ranches at the Dude Ranchers’ Association Web site at www.duderanch.org. This association only accepts ranches that pass its two-year screening process. You can look up ranches by state, read about activities offered at each ranch and compare prices. You can order a free dude ranch directory by calling (307) 587-2339. Another Web site you can use is www.ranchweb.com. This Web site lists ranches in the United States and Canada. It lets you find ranches that offer kid’s programs, luxury accommodations, golf, fishing and other activities.
Spout off Some of the best summer whale watching destinations are: Cape Cod, California Coast, Baja California and Vancouver Island. Many tour operators offer boat tours that last several hours during which you will have a chance to spot whales. Choose a boat tour that provides a whale specialist to tell you more about whales and answer your questions.
History lessons Whether you like camping or day trips, take a look at the National Park Service Web site to find parks near you. The Web site lets you search for parks by activity interests and location. You can also browse interactive maps of all U.S. states, view photo galleries of individual parks and find detailed information about getting there.
For family vacationers, it usually makes sense to purchase a National Parks Pass for $50. The pass will admit you and any accompanying passengers in a private vehicle. You can call (888) GO-PARKS or order the Pass online at the National Park Service Web site.
Bright lights According to the Travel Industry Association of America (TIA), travelers’ interest in visiting large cities is down 4% from last summer. This means that you should be able to find better hotel rates and fewer crowds. Large cities like New York or Washington, D.C. offer many museums, theater performances and famous sights. In New York, see a Broadway show, visit the Central Park Zoo and tour the American Museum of Natural History. For more information about visiting New York City and to browse summer savings’ packages, see www.nycvisit.com.
Source: VacationIdea.com.
Bankrate: Inflation News Pushes Mortgage Rates Higher
Average 30-year fixed rate mortgage inched higher from 6.69 percent to 6.71 percent
Fixed mortgage rates increased following the release of the May Consumer Price Index, which showed inflation still lurks. The average 30-year fixed rate mortgage inched higher from 6.69 percent to 6.71 percent, according to Bankrate.com's weekly national survey of large lenders. The 30-year fixed rate mortgages in this week's survey had an average of 0.35 discount and origination points.
The average 15-year fixed rate mortgage popular for refinancing rose to 6.36 percent. On larger loans, the average jumbo 30-year fixed rate nosed upward to 6.88 percent from 6.86 percent. Adjustable rate mortgages were mixed. The average 5/1 adjustable rate mortgage dipped to 6.31 percent, and the average one-year ARM climbed to 5.94 percent. Mortgage rates have bobbed up and down over the past month, moving only slightly from one week to the next. Even a higher-than-expected increase in consumer prices barely caused a ripple in mortgage rates. The latest inflation news assures a rate hike at the Federal Open Market Committee's next meeting June 28-29. While short-term interest rates continue to rise, longer term instruments are showing little reaction. Mortgage rates are closely related to yields on long-term government bonds.
Fixed mortgage rates are considerably higher than one year ago. This time last year, the average 30-year fixed mortgage rate was 5.73 percent, meaning that the monthly payment on a loan of $165,000 was $960.80. With the average 30-year fixed rate now 6.71 percent, the same loan originated today would carry a payment of $1,065.80. Fixed mortgage rates remain an attractive refinancing alternative for adjustable rate borrowers facing sharp payment adjustments.
SURVEY RESULTS
30-year fixed: 6.71% -- up from 6.69% last week (avg. points: 0.35)
15-year fixed: 6.36% -- up from 6.31% last week (avg. points: 0.33)
5/1 ARM: 6.31% -- down from 6.32% last week (avg. points: 0.33)
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.
Check The Current Rates or Get Mortgage Help On My Web Site At: www.davidrigney.com
Fixed mortgage rates increased following the release of the May Consumer Price Index, which showed inflation still lurks. The average 30-year fixed rate mortgage inched higher from 6.69 percent to 6.71 percent, according to Bankrate.com's weekly national survey of large lenders. The 30-year fixed rate mortgages in this week's survey had an average of 0.35 discount and origination points.
The average 15-year fixed rate mortgage popular for refinancing rose to 6.36 percent. On larger loans, the average jumbo 30-year fixed rate nosed upward to 6.88 percent from 6.86 percent. Adjustable rate mortgages were mixed. The average 5/1 adjustable rate mortgage dipped to 6.31 percent, and the average one-year ARM climbed to 5.94 percent. Mortgage rates have bobbed up and down over the past month, moving only slightly from one week to the next. Even a higher-than-expected increase in consumer prices barely caused a ripple in mortgage rates. The latest inflation news assures a rate hike at the Federal Open Market Committee's next meeting June 28-29. While short-term interest rates continue to rise, longer term instruments are showing little reaction. Mortgage rates are closely related to yields on long-term government bonds.
Fixed mortgage rates are considerably higher than one year ago. This time last year, the average 30-year fixed mortgage rate was 5.73 percent, meaning that the monthly payment on a loan of $165,000 was $960.80. With the average 30-year fixed rate now 6.71 percent, the same loan originated today would carry a payment of $1,065.80. Fixed mortgage rates remain an attractive refinancing alternative for adjustable rate borrowers facing sharp payment adjustments.
SURVEY RESULTS
30-year fixed: 6.71% -- up from 6.69% last week (avg. points: 0.35)
15-year fixed: 6.36% -- up from 6.31% last week (avg. points: 0.33)
5/1 ARM: 6.31% -- down from 6.32% last week (avg. points: 0.33)
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.
Check The Current Rates or Get Mortgage Help On My Web Site At: www.davidrigney.com
Tuesday, June 06, 2006
Housing Bubble About to Bust? Consumers Say NO in ING DIRECT National Survey
Most consumers are confident about real estate prices, not concerned about mortgage rate increases
RISMEDIA, June 6, 2006—While talk of a housing bubble triggered by higher interest rates is a topic of discussion and much news coverage, most consumer are confident about real estate prices and don't seem concerned by some increases in mortgage rates. Three quarters of the respondents said that they had very little concern about the prospective value of their homes.
Respondents to ING DIRECT's fourth annual homeowners' study foresee continued increases in home mortgage rates in the year ahead but are not overly concerned.
Seventy-one percent of those polled expect rates to increase, while 21 percent think they will remain the same, according to the national study conducted by Synovate, the global research firm.
On average, homeowners who have owned a home for at least three years feel that new mortgage interest rates will increase 1.6 percentage points over the next 12 months, with 50 percent expecting an increase between one and two percentage points. Sixteen percent anticipate a jump between three and four percentage points.
ING DIRECT found that the majority (85 percent) of those who own a home believe that their home increased in value during the last three years. While homeowners felt their home has increased in value by approximately 6% over the past 12 months, they only expect their home's value to increase by about 4% in the next 12 months. Homeowners in New England and Pacific states are the most likely to cite increases, while those in South Central states are the most likely to say their home's value did not change.
And of those who have owned a home for at least three years, 74 percent said they were not very concerned that there might be a downturn in the housing market in the next year, which would lower the value of their home.
Only 9 percent of those who experienced an increase in their home's value during the past three years say that the increase has allowed them to spend more than they earn annually. On the other hand, nearly two-thirds believe a 10% decrease in home value would have no impact on day-to-day spending.
Homeowners are most likely to consider their home to be an investment or a place to live when they retire. One in four think of their home as a source of extra income to draw from when cash is needed. This is reinforced by the ING DIRECT finding that only 8 percent of homeowners say they refinanced in the past three years and received cash back.
"We've long viewed buying a home as the most important long-term investment a person can make and that a home is the largest savings account one will ever have," says Arkadi Kuhlmann, president and CEO of ING DIRECT. "It is encouraging that most people do not consider the equity in their residences as piggy banks to be tapped for spending on vacations or furniture."
The survey also looked at the borrowing experience and reinforces the need for lenders to be transparent in the total cost of a mortgage. Respondents who report that closing costs were higher than they originally expected say the closing costs they paid on their current mortgage were almost $600 more than anticipated.
"It is important for borrowers to be educated and know the total cost of their mortgage, including any fees or closing costs," Kuhlmann added. "But it's really up to the industry to improve the mortgage experience by offering simple, straightforward products
In order to make your mortgage offer more transparent, Brian Levitan at Midwest Equity Financial Services can help you in the experience. Call Brian at 630-649-2150.
If you have any questions, please do not hesitate to ask me.
Thanks, Dave 1-800-731-1162 or www.davidrigney.com
RISMEDIA, June 6, 2006—While talk of a housing bubble triggered by higher interest rates is a topic of discussion and much news coverage, most consumer are confident about real estate prices and don't seem concerned by some increases in mortgage rates. Three quarters of the respondents said that they had very little concern about the prospective value of their homes.
Respondents to ING DIRECT's fourth annual homeowners' study foresee continued increases in home mortgage rates in the year ahead but are not overly concerned.
Seventy-one percent of those polled expect rates to increase, while 21 percent think they will remain the same, according to the national study conducted by Synovate, the global research firm.
On average, homeowners who have owned a home for at least three years feel that new mortgage interest rates will increase 1.6 percentage points over the next 12 months, with 50 percent expecting an increase between one and two percentage points. Sixteen percent anticipate a jump between three and four percentage points.
ING DIRECT found that the majority (85 percent) of those who own a home believe that their home increased in value during the last three years. While homeowners felt their home has increased in value by approximately 6% over the past 12 months, they only expect their home's value to increase by about 4% in the next 12 months. Homeowners in New England and Pacific states are the most likely to cite increases, while those in South Central states are the most likely to say their home's value did not change.
And of those who have owned a home for at least three years, 74 percent said they were not very concerned that there might be a downturn in the housing market in the next year, which would lower the value of their home.
Only 9 percent of those who experienced an increase in their home's value during the past three years say that the increase has allowed them to spend more than they earn annually. On the other hand, nearly two-thirds believe a 10% decrease in home value would have no impact on day-to-day spending.
Homeowners are most likely to consider their home to be an investment or a place to live when they retire. One in four think of their home as a source of extra income to draw from when cash is needed. This is reinforced by the ING DIRECT finding that only 8 percent of homeowners say they refinanced in the past three years and received cash back.
"We've long viewed buying a home as the most important long-term investment a person can make and that a home is the largest savings account one will ever have," says Arkadi Kuhlmann, president and CEO of ING DIRECT. "It is encouraging that most people do not consider the equity in their residences as piggy banks to be tapped for spending on vacations or furniture."
The survey also looked at the borrowing experience and reinforces the need for lenders to be transparent in the total cost of a mortgage. Respondents who report that closing costs were higher than they originally expected say the closing costs they paid on their current mortgage were almost $600 more than anticipated.
"It is important for borrowers to be educated and know the total cost of their mortgage, including any fees or closing costs," Kuhlmann added. "But it's really up to the industry to improve the mortgage experience by offering simple, straightforward products
In order to make your mortgage offer more transparent, Brian Levitan at Midwest Equity Financial Services can help you in the experience. Call Brian at 630-649-2150.
If you have any questions, please do not hesitate to ask me.
Thanks, Dave 1-800-731-1162 or www.davidrigney.com