7 Disturbing Trends in Mortgage Rate News

mortgage rates trends

By Mark Polman

The housing market in America has been tipped upside down because of uncertain economic times and trouble in the mortgage markets. Mortgage rates news is not encouraging and trends are not behaving the way the professionals predicted and while they are at their lowest rates since the 1950s, nobody is buying anything. Why? The answer partially lies in these seven disturbing mortgage trends.

1. Mortgage rates are going?

The Federal Reserve plowed billions of dollars into mortgage backed securities which drove interest rates down. That spending binge ended in April and virtually every mortgage expert expected the rates to rise in the Spring and Summer of 2010 however the rates have stabilized and show no signs of increasing. The reason most offered to explain this is that demand for mortgages is low because of the uncertain economy.

2. Is demand low or are we all just too poor

With the average existing mortgage at 5.9% and new mortgages going for 4.75% it would seem like people would be scrambling to refinance their home to get a lower monthly payment. In normal times they would but these are not normal times. The housing market has taken a huge hit thanks to the enormous number of bank owned sales that has driven the value of most properties down. Today it is not uncommon to find a homeowner, even a long term homeowner, whose mortgage is greater than the value of his home. No equity means no refinancing.

3. HARP program a complete flop

The federal government presented the Homeowners Affordable Refinance Plan that was designed to make it possible for homeowners to get refinancing even if they were upside down on their mortgage. The administration predicted this plan would help refinance 2 million homes in 18 months. Unfortunately, this is not a mandated program and banks, even the ones who got all the TARP money don't have to participate. Eleven months into the program fewer than 300,000 refinance loans have been approved.

4. FHA tightens up requirements

Typically conventional loans will allow the seller to help the buyer out by taking back up to 3% of the sales price. The FHA had a more liberal allowance of 6% and that's what made their loans so attractive. Unfortunately the FHA has decided to conform with the other lenders and limit that assistance to 3% knocking even more people out of the house buying market.

5. Jumbo loans now more available

While banks are tightening requirements for conventional loans they are easing requirements for jumbo loans. Where before banks required a 25% down on a jumbo, lenders have relaxed that threshold to 20%. So if you are wealthy you can get a loan for your mansion for less down than you could before.

6. Does SAFE really make us safe

Firmly slamming the barn door after the cow had already left, the federal government came up with the SAFE Mortgage License Act as a way to insure that lenders and brokers understood the market place and to protect consumers from the sharks that swim in the mortgage waters. However it appears that this act does not apply to everyone. If you are a lending company or a broker you need to pass a test. If you work for a bank you don't.

7. FHA still the most attractive new home mortgage

While most of the concerns are about refinancing, those that qualify for a new home mortgage but are short on the down payment will find the FHA loan very attractive. Without doubt, the down payment requirement of just 3.5% of the sale price is the lowest a consumer can find anywhere.

On the one hand if you have great credit and a bunch of cash this is a fantastic time to take advantage of super values in the housing market. On the other hand, if your upside down don't expect to get right side up anytime soon. Mortgage rate trends are now totally unpredictable and will remain so until this economic crisis is over.

Mark Polman, business management expert keeps a close eye on the housing market and agrees that mortgage rates news indicates that rates are unpredictable right now. That doesn't mean there aren't mortgage bargains still available and he recommends you visit Mortgage Canada Rates to find them.

Article Source: http://EzineArticles.com/?expert=Mark_Polman

mortgage rates trends

How to Understand Mortgage Rates

mortgage rates trends

By kp1832000

When searching for a mortgage, mortgage loan rates are normally the deciding factor when it comes to choosing a lender or bank. Whether your interested in home mortgage refinancing, home equity loans, or initial home loans, your mortgage rates are what dictate your monthly payments. Finding the lowest fixed interest rate is the name of the game. Mortgage rates are influenced by many factors but most notably the 10 year treasury bond. Here are a few tips to help you better understand mortgage rates and why they move.

- mortgage rates trends

Instructions

1. Understand the factors that determine mortgage rates. Although there are a number of elements that effect mortgage rates, the 10 year treasury bond or Intermediate Term Bond is agreeably the biggest indicator in determining the movement of mortgage rates. The treasury bonds are 10 years In length. Being one of the closest contracts to a typical 30-year mortgage, the 10 year treasury bond makes a great comparison

- mortgage rates trends

2. Know the causes and effects of inflation. Inflation in our economy has a strong influence on mortgage rates. When economists predict inflation, mortgage rates tend to go up. But when the threat of inflation isn't there, mortgage rates tend to fall. Many people monitor mortgage rates in the hope of taking advantage of refinancing their mortgage at a lower rate.

- mortgage rates trends

3. Be aware of what's going on in the news. Good or bad overall economic news has a huge effect on mortgage lenders rates. Economic turmoil can cause mortgage lenders to lose faith in home owners and borrowers ability to repay their mortgages. If the economy is bad people start to lose their jobs and other means of income which results in more defaulted loans. Thus leading to high loan modification applicants that can also bring mortgage rates up.

- mortgage rates trends

4. Pay attention to economic data reports. Reports like the Consumer Price Index(CPI), Jobless Claims Report, Gross Domestic Product(GDP), and Home Sales reports. All of these reports measure economic data and are a great ways to predict the rise and fall of mortgage rates. The more you know about mortgage rates and what moves them the more options you will have. For instance if you think mortgage rates are going to fall over the next few years, an adjustable rate mortgage (ARM)-that gives you the current mortgage rates- might help you save money. Adjustable rate mortgages are high risk though. Having an expert knowledge of mortgage rates and trends are a must. Avoid bad credit mortgages as the rates are normally high. Sometimes renting is the better short term option.

- mortgage rates trends

Resource

# http://www.ehow.com

- mortgage rates trends

mortgage rates trends

Mortgage Rate Trends Are Pointing Towards Much Lower Rates

mortgage rates trends

By Jesse R Wojdylo

Ben Bernanke and the Federal Reserve Bank have been adamant about buying back mortgage backed securities. By doing this, rates are going to continue to fall. There is no way that the government can put TRILLIONS of dollars into MBS and rates rise. The overall trend for mortgage rates has been down for quite some time and there is little evidence to prove that this will change anytime in 2009.

Trends are very important to some individuals because it gives them an opportunity to gauge the correct time to refinance. If you can time it out correctly, you could save over $10,000 over the lifetime of a loan. There are not many financial gurus out there that have been successful at making predictions, but there are some!

Overall mortgage trends and rate predictions go hand in hand. If the trend is up, it is likely that predicting the future of 30 year fixed rates will follow the trend. The old adage is "the trend is your friend." With the current trend in rates being down, there is absolutely no reason to buck the long term trend and predict that overall rates are going to go higher for an extended period of time. It is likely that we will see weeks in which there is a bounce in most rates, but it seems highly unlikely that the overall downtrend will be broken with the government doing everything they can to keep mortgage rates under 5%. Some are even predicting that the government will force rates to under 4%.

Subprime Blogger is your mortgage news source for the current events affecting the mortgage industry as a whole.

Subprime Blogger offers several articles on mortgage rate trends that can help you save a great deal of money if you decide to buy a new home or refinance.

Article Source: http://EzineArticles.com/?expert=Jesse_R_Wojdylo

mortgage rates trends

Mortgage Rate Trends Could Help You Save Money - Mortgage Rates Trends

mortgage rates trends

By Jesse R Wojdylo

Mortgage rate trends are something that is searched every single day on Google. Recently, it has been a keyword phrase that has been searched even more because home owners and new home buyers see that overall rates have hit a short term bottom and have been heading higher over the last few weeks. Most Americans do not want the long term downward trend to be broken, but with a for more weeks of an uptrend and that is likely to happen.

The government also does not want that to happen as they want to keep low mortgage rates in an economy like this. The housing market has seen some unbelievable declines and if we continue to see rates increase, it is likely that those declines are going to get even worse. President Obama and Ben Bernanke know this and that is why they have been doing everything in their power to push over rates below 5%. Unfortunately, the 10 year treasury rate has continued to work itself higher which has caused and increase in interest rates.

If you have been following mortgage rate trends over the last few years, you likely know how much money can be saved by doing a little bit of extra research. We all have friends and family who locked in at rates well below 5% and they are reaping the benefits right now. Having lower mortgage payments can make everything in your financial life much easier so why not take the time and do a little bit of extra research so you too can save every month.

Subprime Blogger offers you up to date information on current mortgage rate trends. Having access to Low mortgage rates is something every American wants, let Subprime Blogger help you!

Article Source: http://EzineArticles.com/?expert=Jesse_R_Wojdylo

mortgage rates trends

Mortgage Rates Trends - Trends Showing Higher Mortgage Interest Rates

mortgage rates trends

By Jesse R Wojdylo

Current mortgage rates trends are showing that we should expect higher interest rates in the very near future. The trend in the 10 year treasury rate yield that began back in January remains intact and as strong as ever. If this trend continues, we could see the 30 year fixed mortgage rate over 6% before we know it. Obviously this is very bad news for home owners who were hoping to refinance at low rates.

If you were hoping that the mortgage rate trend would reverse and head down, you might have missed the boat. Overall rates have stayed above 5% for two months now and it looks like 6% is the next target. The three decade downtrend that began back in 1982 looks to be bottoming out in the years from 2002 to 2009. This bottoming process could mean that average mortgage rates could head into the double digits in the next few years.

No one wants this to happen, especially the government, but the government is going to be the exact reason we do see higher mortgage rates. By forcing rates lower through the purchasing of US debt, the Federal Reserve Bank has devalued our currency. As the US dollar drops in value, the 10 year yield increases which causes overall interest rates to move higher. The Fed continues to shell out billions of dollars to buy up mortgage backed securities. This will help to keep rates low now, but eventually, when the dollar gets devalued even more, we are going to see an inflationary period that includes much higher rates.

Subprime Blogger offers information on current mortgage rates trends. By keeping up with average mortgage rates you could save a ton of money by refinancing at the correct time.

Article Source: http://EzineArticles.com/?expert=Jesse_R_Wojdylo

mortgage rates trends