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Mortgage Interest Rates Article
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Why Can Mortgage Rates Rise in a Down Market?
from: Deb St. George - HomelessInKingCounty.comWith all the hoopla about the overload of inventory in most states (due to foreclosures), and the dropping of interest rates by the Federal Reserve, you may be wondering why mortgage rates haven risen in the past year over all. The mortgage industry is not the same as the banking and the housing industry. They are connected to these two sectors of the market, but lending products are usually priced on their own merits and not just those of the economy.
The Lender’s Point of View
So, while the amount of inventory can affect home prices and spur competition amongst lenders, it can lower the rates if one lender is trying to grab a bit more business. On the other hand, the mortgage crisis has been so severe in some states that many lenders are wary of lending to unreliable borrowers. They have tightened their credit requirements and when you don’t meet those newer requirements, they may raise the rate to hedge their risk. So, even with a market rate of 6.00% on a 30-year fixed rate mortgage, you could still end up paying more if you don’t meet the new credit requirements of a FICO score of 720 or more, solid employment, and a sizable down payment.
The Market’s Point of View
Mortgage rates can also increase, even if the Federal Reserve decides to lower interest rates. This may spur banks to lend out more money and attract more customers. As the new customers start to flood the market, the demand increases. When the demand of any product goes up, so does the price. That’s why the mortgage rates can even increase when the Federal Reserve cuts rates.
Your Point of View
It is very difficult to time to buy a house at the bottom of mortgage rate drop cycles. Typically, you can do this better if you are refinancing than if you are buying because you are then comparing your new loan to whatever you had before. If it saves you money or drops by at least 1 to 2 points of your mortgage interest, then you are pretty confident that buying at that time is a good move. Otherwise, if you are new buyer and have nothing to compare it to, you still can be relatively comforted by the fact that despite rises and falls over the short-term, mortgage rates are at a historically low-point for now in comparison to years past. They may not drop more than 1 point more and should they do so, you can always refinance your mortgage rates later.
Mortgage Interest Rates News
Mortgage Rates: Low Mortgage Rates Hit Record Again Says Freddie Mac - FreeRateUpdate.com
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What mortgage rate will you really get? - MSN Money
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Memphis Realtors participate in Washington rally to protect mortgage interest ... - Memphis Commercial Appeal
Memphis Realtors participate in Washington rally to protect mortgage interest ... Memphis Commercial Appeal By Tom Bailey Jr. Twenty-two Memphis Realtors joined an estimated 13500 Realtors in Washington today at a rally urging Congress to protect mortgage interest deductions. “It was phenomenal,” Carol Lott, president of the Memphis Area Association of ... |
Interest Rate Cut to Benefit Homeowners - San Francisco Chronicle (press release)
 e-wisdom.com | Interest Rate Cut to Benefit Homeowners San Francisco Chronicle (press release) Leading mortgage broking group, The Mortgage Gallery Rockingham assists clients in order to help them take advantage of the new interest rate adjustments in the banking sector. Perth, Western Australia (PRWEB) May 17, 2012 The Mortgage Gallery ... Mortgage delinquency rates at lowest levels in three years Mortgage Refinances That Make Sense On a knife-edge: 100000 families could lose their homes if mortgage rates rise ... |
Mortgage Application Volume Rose 9.2% Last Week -- MBA - Wall Street Journal
 e-wisdom.com | Mortgage Application Volume Rose 9.2% Last Week -- MBA Wall Street Journal The number of mortgage applications filed in the US last week rose 9.2% from the prior week, the Mortgage Bankers Association said Wednesday, as renewed economic worries in Europe dragged interest rates to fresh lows. Refinance activity jumped 13%, ... Refinance App Volume Rises as Interest Rates Reach New Lows Mortgage Delinquency Rate in US Fall to 2008 Levels Mortgage refinancing applications jump; rates fall: MBA |
Kiwibank cuts mortgage rates - New Zealand Herald
 New Zealand Herald | Kiwibank cuts mortgage rates New Zealand Herald Kiwibank has joined the rush to cut interest rates on its fixed mortgages. Photo / Janna Dixon Westpac has moved to cut some of its advertised fixed-term mortgage interest rates, on the heels of cuts by Kiwibank earlier in the day, matching the state ... Current Mortgage Rates Today – Citibank Lowers Rates while most lenders ... TSB slashes rates Get ready for sharp rise in mortgage rates, warns Bank of England |
High Yielding REITs Will Continue to Benefit From Record Low Interest Rates ... - MarketWatch (press release)
High Yielding REITs Will Continue to Benefit From Record Low Interest Rates ... MarketWatch (press release) NEW YORK, NY, May 16, 2012 (MARKETWIRE via COMTEX) -- High yielding mortgage REITs have performed admirably in 2012. The Vanguard REIT ETF (VNQ) is up more than 12 percent-year-to-date. REITS have continued to take advantage of low interest rates to ... 2 REITs Paying Big 14%+ Dividends |