The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for  the week ending August 19, 2011 showed that mortgage applications for a home refinance dropped slightly by 1.7 percent from the previous week in spite of continued low rates.

According to HSH.com, the average rate for a 30-year fixed-rate home loan declined to 4.50 percent during the week ending August 19, a new record low. The average rate for a 15-year fixed-rate mortgage dropped to 3.73 percent and 5/1 adjustable rate mortgages (ARMs) dipped to 3.23 percent. Homeowners without a lot of equity can often refinance into an FHA loan even if their current mortgage is not an FHA loan. FH

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View full sizeOne in 39 Portland-area houses with a mortgage were in foreclosure in August, and the metro area’s foreclosure rate of 2.61 percent was nearly half a percentage point higher than the same month a year ago. The figure, released by California analytics firm CoreLogic, reflects the percentage of homes in foreclosure among all outstanding mortgages in the Portland-Vancouver-Hillsboro area. It’s been trending upward since the onset of the housing crisis.The percentage of Portland-area homes 90 days behind on their mortgages increased 0.16 percent year-over-year, reaching 5.69 percent in August. Read more…

MUMBAI: After goading by the Government and fearing risks to asset quality, a number of state-run banks, led by SBI, Central Bank, Syndicate and Canara, have decided to raise home loan tenors to 25 to 30 years or till the borrower touches 70, well past the working age. State Bank of India took the lead and has reportedly decided to extend the tenor of home loans by 10 years or up to 30 years, while others are doing this on request. “We have decided to increase the home loan tenure by up to 10 years to 30 years and up to the age of 70, depending on the customer profile. Our Managing Director (S Krishna Kumar), is likely to announce this tomorrow,” a senior SBI official told PTI, requesting anonymity. Read more…

The Bank of England has today revealed mortgage approvals picked up significantly in August to a 20-month high.

According to the Bank, there were 52,410 loans approved in the month – almost 3,000 more than the level seen in July and the highest figure since December 2009.

The figure was also higher than the 49,500 expected by analysts.

However, approvals still remain well below levels seen prior to the financial crisis.

Since the early 1990s, mortgage approvals have averaged around 90,000 a month but the credit crunch saw a tightening of lending criteria and many have been unable to secure a mortgage unless they have a significant deposit. <

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After two days of significant improvements, Mortgage Rates took a measured step back today.  Best-Execution rates rose about an eighth of a point, but in some cases, your rate may not have changed at all today-merely your closing cost quote.

(temporary caveat that we’ll probably repeat a few more times): Please keep in mind that lenders simply cannot move mortgage rates lower at the same pace as a rapid rally in Benchmark Treasuries.  Although you might hear talking heads on TV or read articles saying that mortgage rates are tied to Treasuries, THEY ARE NOT, and you’ll be perennially frustrated if you expect them to be.  We explained that in greater detail earlier in the month:

Today’s Rates:  The current market is in a state of flux at the moment and mortgage rates moving up and down around ALL TIME LOWS.  BestExecution 30yr Fixed rates were mostly near 3.875% today, with a higher than normal degree of variation around there.  FHA/VA deals are in a bit of a predicament that’s keeping them blocked off below 3.75% (there’s no secondary market for rates any lower than that right now!).  For similar reasons, 15 year fixed conventional loans may be stuck at 3.25%.  5 year ARMS remain near 3.125%, but with variations from lender to lender.

GUIDANCE:   was really excellent.  As feared, we saw plenty of “pipeline control” price changes among lenders, and that was exacerbated today by weakness in the bond market.  Strategically (longer term, bigger picture), locking when the Best-Execution rate is 3.875% makes a ton of sense.  Even on a shorter term outlook, the broader shift that’s taken place behind the scenes in the secondary mortgage market suggests a range of rates between 3.75 and 4.125.  So right now it’s leaning slightly to the more aggressive side.  If there was any better time in history to lock a loan than today, it was yesterday.  We don’t know what sort of opportunities will be available next week, and although we think rates will be relatively low for a while, we’re not sure it’s worth the risk to float for marginal gains when we’re only an eighth or two away from some of the most aggressive offers yesterday (and consequently, of all-time).

 

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