[Housing Market] Rise in Pending Home Sales Reveals Glimpse of Bottom – http://tinyurl.com/bdnpee # [InterestRates] Colorado Mortgage Rates Climbing – http://budurl.com/wasw – (JBermanGroup rates lower than state average!) # Powered by Twitter Tools.
[FHA] Default rates rising among FHA-backed loans – http://budurl.com/h7u9 # [Subprime] Delinquency rates on prime mortgages surpass subprime loans – http://budurl.com/77ne # Rates deteriorating across the board. The wild ride continues. # [Housing Market] New-Home Sales Tumble 45% – http://budurl.com/pjjc # Powered by Twitter Tools.
[NAR] Realtors’ Former Top Economist Says Don’t Blame the Messenger (Associations are the new unions) # RT: @mortgagereports: (Mortgage markets open worse this AM) + (New Fannie Mae fees) A potentially bad day for rate shoppers. # [Smart Money] Nine Methods for Mastering Your Money in 2009 http://budurl.com/rfcj (LifeHacker’s plan, what is yours?) # [Colorado Enforcement] AG Suthers reaches settlement with mortgage companies – http://budurl.com/ahx5 # Powered by Twitter Tools.
Mortgage markets are like any other market — in order for goods to change hands, a buyer and a seller must first reach an agreement to “trade” at a specific price point. In general, the more buyers and sellers there are for a particular item, the easier it is to find that “fair value” and make the deal. An abundant number of buyers and sellers often creates a liquid market in which assets — in this case, mortgage bonds — can be sold rapidly with minimal loss. This week, though — with so many traders on vacation — the “liquid market” has gone illiquid. The treasury market posted just 41 percent of its normal, daily volume Monday, leading to erratic pricing in the mortgage bond market which, in turn, caused mortgage rates to follow. For example, mortgage rates started the day lower yesterday before sprinting higher over a 30-minute, early-afternoon span. Markets were largely unprovoked by economic data, geopolitical developments, […]
In late-November, the Federal Reserve pledged $600 billion to buy mortgage-backed securities. The announcement drove down mortgage rates and started the Refi Boom. Then, the Federal Reserve made a second series of statements after its scheduled meeting last Tuesday, causing mortgage rates to plunge again. This started the Refi Boom’s second wave. Because of the surge in refinance activity, mortgage lenders are “backed up”; initial file reviews are taking up to 12 business days in some cases. Typically, this process takes 2 days. Underwriting delays are problem for refinancing Americans because when a mortgage rate is locked, it’s most often locked for 30 calendar days — the standard Rate Lock Agreement contract length. If the mortgage doesn’t close within those 30 days, the applicant must either pay an “extension fee” to preserve the lock, or risk losing the rate altogether. 30 days may seem like a long time, but let’s consider a few external variables: December 24, 25, and 26 […]
by jberman