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Playing Mortgage Rate Roulette
from: Deb St. George - HomelessInKingCounty.comMortgage rates are rising due to more demand for mortgage products. Even though the Federal Reserve has tried to influence the home mortgage industry by leveraging the discount points charged to lenders, it’s not a one-to-one relationship. Mortgage rates are more susceptible to supply and demand of the actual mortgage products and competition between lenders, rather than some arbitrary rate the Federal Reserve charges bank who are borrowing money. So, there really isn’t a real way to time your entrance into the home buying market by waiting for interest rates to drop. Instead, they may rise no matter what the Federal Reserve does to try to influence the markets. On the other hand, they could drop but there’s no way to tell until after the fact. So, if you want to buy a home, don’t play mortgage rate roulette. Instead, take the long-term view and realize that no matter what happens this may be an ideal time to buy a home if you have great credit.
Historically Low Mortgage Rates
If you take a look at how the mortgage rate offered by lenders has changed over the years, Bankrate.com estimated that the average 30-year fixed rate during the last 22 years was 7.99 percent. That’s because in the decades of the 80’s and 90’s rates were much higher than they are today. We only started to see less expensive rates being offered in the years in the 2000’s. So, while you may not get the best rate possible (if rates drop), historically you will probably get a better deal than many in the years past. So, if the rate inches up a small percentage, it may cost you more in the long run to finance your mortgage, but you will still pay less than if you had done it in the 80’s and 90’s.
Locking in the Rate
In fact, there is probably more likelihood that mortgage rates might increase as the economy starts to recover and demand for mortgage products increase. Of course, this may be a few years down the line, but you can always lock in your rate when you qualify for the loan. This is one way people help to take the worry out of mortgage rates increasing while they are looking for a home. Instead, they qualify for a mortgage first, lock in the rate, and buy the house in the period of time allotted by the rate lock. It makes looking for a home a little less stressful when you already know what you will be paying and for how long.
Mortgage Bank News
Fewer new mortgage problems in Maryland, more older ones - Baltimore Sun
 e-wisdom.com | Fewer new mortgage problems in Maryland, more older ones Baltimore Sun That's as of March, the newest figures from the Mortgage Bankers Association. There's an argument brewing over why Maryland has a big backlog of pre-foreclosure and foreclosure cases -- the so-called "shadow inventory" that, odds are, will eventually ... Washington mortgage delinquencies up, foreclosures down Mortgage rates reach new low, spur refinancing Mortgage Bankers Honor Top Performers |
Fortress Gathering Capital for Mortgage-Servicing Rights - Bloomberg
Fortress Gathering Capital for Mortgage-Servicing Rights Bloomberg Fortress Investment Group LLC (FIG), the New York-based investment firm overseeing $46.4 billion, is seeking capital to buy residential mortgage-servicing rights as banks sell the loans, according to a presentation to clients. |
Citigroup Sued by South Korea's Woori Bank Over CDO Losses - Bloomberg
Citigroup Sued by South Korea's Woori Bank Over CDO Losses Bloomberg 'Violated Standards' “Defendants knew that the RMBS that they and other major banks were packaging into CDOs included a significant percentage of mortgages that violated basic underwriting standards and were likely to default,” Woori alleged in the ... |
Low, low rates boost loans - Boston Herald
 Mortgage Rates & Trends (blog) | Low, low rates boost loans Boston Herald By Jerry Kronenberg Mortgage rates are hitting once inconceivable lows as the European debt crisis and the Federal Reserve's “Operation Twist” drive interest levels into the cellar. “It's unbelievable,” John Brodrick of Boston's Eastern Bank said ... 30-year Mortgages Hit 3.79% Current Mortgage Rates for Thursday, May 17, 2012 |
Forced Homeowner Policies Assailed - Wall Street Journal
 New York Daily News | Forced Homeowner Policies Assailed Wall Street Journal Homeowners with mortgages are generally required to carry homeowner policies to protect their property, which serves as collateral for the loans. Banks can "force" these policies on customers who allow their insurance to lapse by mistake, ... New York Mulls Insurer Profit Caps on Lapsed Borrowers House insurance gouge puts homes in danger Force-Placed Insurance Payments Target of New York Hearing |
Watchdog: Targets Missed on Bank Split - Wall Street Journal
 BBC News | Watchdog: Targets Missed on Bank Split Wall Street Journal Northern Rock was nationalized in February 2008 after a near collapse and split into a "good bank"—retail deposits, a mortgage book and 75 branches—and a so-called bad bank comprising the lender's remaining assets of troubled loans. How serious is the £2bn Rock loss? UK taxpayer may lose 2 bln stg on N.Rock rescue -NAO Northern Rock rescue to cost taxpayers £2bn |
Non-Bank Supervision, Lloyds, Mortgages: Compliance - BusinessWeek
Non-Bank Supervision, Lloyds, Mortgages: Compliance BusinessWeek Finland's Financial Supervisory Authority set common rules for banks on calculating loan-to-value ratios in mortgage lending. The watchdog kept its recommendation of a maximum 90 percent loan to value, saying the rule helps reduce the number of ... |