Realty News Headlines | May

The following headlines and news items were compiled from a number of authoritative sources and industry experts including Freddie Mac, REALTOR® Magazine Online, the National Association of Realtors, Realty Track and the Wall Street Journal. The next news update is scheduled to be released in mid-July 2010.

Mortgage Rates Hit an All-Time Low

Although the average rates for 30-year fixed mortgages have fallen to record levels, demand for purchase loans is down due to economic uncertainty. The average interest on a 30-year fixed mortgage fell to an all-time low of 4.69 percent this week, down from 4.75 percent a week ago, reported by Freddie Mac.

Although rates have held below 5 percent since early May, Michael Fratantoni of the Mortgage Bankers Association notes that demand for purchase loans has fallen in six of the past seven weeks and now is at a 13-year low. Consumers have grown used to low rates and are more concerned about stagnant wages and high unemployment.

Source: Real Estate Daily News | Posted: 06/25/10 | Washington Post, Dina EA

Financial Compromise Bill Close to Passage

The U.S. House and Senate reached agreement early Friday morning on the largest financial overhaul since the Great Depression. The bill will particularly affect home buyers seeking mortgages, requiring lenders to ensure that a borrower is able to repay a home loan by verifying income, credit history, and employment. It also would ban payments to brokers for helping borrowers find alternative financing.

The bill establishes a consumer financial protection agency to police lending, and adopts new rules for mortgage-backed securities, requiring banks in most cases to retain 5 percent of the credit risk on their books.

Congressional leaders hope to win full House and Senate approval next week and send the bill to President Obama by July 4.

Source: Real Estate Daily News | Posted: 06/25/10 | The Wall Street Journal, Victoria McGrane (06/25/2010)

NAR Hails House Vote on Flood Bill Extension

A bill to extend the authority for the National Flood Insurance Program, strongly supported by the NATIONAL ASSOCIATION OF REALTORS®, was passed by the House today. The bill would extend the program to September 30, 2010.

Lenders have refused to close loans on properties that required flood insurance, since the insurance program expired May 31. The bill would make flood insurance coverage retroactive and would include all approved applications since that date. The bill now goes to the Senate for consideration.

Source: NAR | Posted: 006/24/10

Freddie Mac's Weekly Mortgage Market Survey (PMMS®)

Freddie Mac's Weekly Primary Mortgage Market Survey® (PMMS®) is conducted on Mondays through Wednesdays with results reported on Thursdays. The survey is based on responses from 125 lenders to determine the average rates and points charged by each lender for their 30 and 15-year fixed-rate mortgages, 5/1 hybrid amortizing adjustable-rate and 1-year amortizing adjustable rate mortgage products. The mix of lender types used for the survey is approximately proportional to the level of mortgage business that each type of lender commands in the marketplace nationwide. This include thrifts, commercial banks and mortgage lending companies.

The survey is based on conventional conforming mortgages with a loan-to-value ratio of 80 percent for first-lien prime mortgage notes. The adjustable-rate mortgage (ARM) products are indexed to constant-maturity U.S. Treasury rates. Lenders are asked to provide initial coupon rate, points and the margin on ARM products.

Freddie Mac's Primary Mortgage Market Survey is relied upon heavily by the public and mortgage industry in gauging market conditions and has evolved into the most representative and reliable source of regional and national mortgage rate trends.

For a breakdown of U.S. Regional Mortgage Rates, you may wish to visit the Official Freddie Mac website.

Archived Articles

Realty News January 2010 Issue Realty News February 2010 Issue

Realty News April 2010 Issue

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