Category: Industry News

Mortgage rates reverse course, moving lower for the first time in more than two months

Fixed mortgage rates, which have been on a tear since the presidential election, retreated this week, falling for the first time in nine weeks.

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average tumbled to 4.2 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.32 percent a week ago and 3.97 percent a year ago.


Read the source article at The Washington Post

CFPB fines TransUnion and Equifax for deceiving consumers with their marketing

HousingWire first broke the news late last week that TransUnion would pay just shy of $17 million as part of a settlement with the CFPB, as revealed by a company filing with the Securities and Exchange Commission. As it turns out, there’s more. Today, the CFPB’s report revealed Equifax was fined too. Click the headline for more information.

Read the source article at U.S. Housing Finance News

Senior housing: How a surging older population will impact U.S. homes

A new Harvard report lays out the wide-reaching impact of a coming surge in senior homeowners.

Baby Boomers have spent decades impacting and re-shaping the U.S. economy, and show no signs of slowing down as they enter their golden years. That’s especially true when it comes to the housing market, according to the latest report from the Harvard Joint Center for Housing Studies.

Read the source article at Curbed

Congress to consider bill requiring Fannie Mae, Freddie Mac to offload more risk

Despite a new report from Moody’s Investors Service stating that wholesale reform of the government-sponsored enterprises is years away, some members of Congress are pursuing changes to how Fannie Mae and Freddie Mac operate. On Thursday, Reps. Ed Royce, R-Calif., and Gwen Moore, D-Wisc., introduced a new bill in the House of Representatives that would require the GSEs to offload more credit risk onto the private sector.

Read the source article at U.S. Housing Finance News

Higher Loan Limits Could Mean Increased Mortgage Volume

The Federal Housing Finance Agency’s choice to raise conforming loan limits in 2016 for the first time in a decade is being met with enthusiasm from the mortgage industry, as it should prove to be a positive for future origination volume.

The agency said Wednesday that it would increase the maximum baseline conforming loan limit in 2017 for mortgages purchased by Fannie Mae and Freddie Mac to $424,100 from $417,000, the level set back in 2006.

Read the source article at National Mortgage News

Buyers Are Wary, But Loan Options Do Exist

New data from the National Association of Realtors (NAR) may help us better understand why homebuyers are hesitant to jump on the buying train.

In its third-quarter Housing Opportunities and Market Experience survey, NAR reports that 78% of homeowners and 60% of renters say now is a good time to buy. That’s down from 80% and 62%, respectively, in the previous quarter.

Part of the reason for this decrease in buyer’s confidence is the low levels of housing supply and rising prices, according to NAR chief economist Lawrence Yun. As interest rates hit historically low levels over the summer, demand increased. But there just aren’t enough homes on the market to keep a lid on pricing.

“Given the stiff competition and limited homes available at the lower end of the market, it’s not surprising at all that those under the age of 34 and in the West are the least confident about it being a good time to buy,” Yun said.

But according to Yun, another factor leading many buyers — especially younger ones — to the decision not to buy may be a lack of knowledge about different mortgage financing options that are available.

Across all ages, fewer than 20% say that they would need just a 10% down payment to finance a home purchase. And 43% of those 65 and older and 37% of those below the age of 35 think a down payment above 20% is required. The average median down payment for first-time buyers, according to the NAR’s Profile of Home Buyers and Sellers, is only 5%.

Even with conventional programs with as little as 1% down using private mortgage insurance, as well as the government’s Federal Housing Administration and Department of Veterans Affairs programs with little/no down payment requirements, more and more buyers are turning to family for loans, rather than lenders. The NAR reports that 19% of current homeowners received some form of down-payment assistance from a parent or relative, and that figure shot up to 34% for homeowners under 35.

Skyline Home Loans is here to help you or a loved one with an appropriate and affordable loan for a home purchase. 

Source: National Mortgage News

New Home Purchase Apps Rise in September: MBA

Loan applications for new home purchases rose 3% in September over the previous year, but continued year-over-year growth could be subdued for the rest of 2016, according to the Mortgage Bankers Association.

New single-family home sales occurred at an estimated seasonally adjusted annual rate of 593,000 units in September, a 1.3% dip from August, the MBA’s Builder Application Survey released on Thursday said.

Read the source article at National Mortgage News