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Interest Rates

Down Payments Motivate Buyers More than Interest Rates

Changes in down payments have much greater impact on homebuyers’ willingness to buy for a home than changes in mortgage rates and lower down payment increase renters; willingness to buy six times more than existing owners, according to a new study published recently by economists at the New York Federal Reserve. The survey of buyers and renters found dramatic evidence … Read More »

Freddie Forecasts Higher Prices, Volatile Rates

  Freddie Mac’s economists expect the balance of the year to be a hectic one as housing markets are likely to see increasing interest rate volatility for the remainder of the year and consumers try to anticipate the Federal Reserve’s timing around rising short term interest rates.  Home buyers may encounter “bouts of affordability shock” if rates rise suddenly. With … Read More »

Freddie Mac: Best Sales Season Since the Boom

Freddie Mac’s economists look for home sales this year to be the best since 2007 with mortgage rates low, purchase applications up and pending home sales on a positive upward trend, even though first quarter results were less than sterling. As a result, the GSE lowered its forecast for economic growth for 2015 from 2.8 to 2.6 percent and the … Read More »

Mortgages in 2014: Winners and Losers

More and more home buyers are finally getting the financing they need, according the year-end Elli Mae Originations Insights Report. But not everyone fared so well. Two out of three applications for a mortgage were approved in November and December, the highest approval rate in years. Some 67.1 percent of applications were approved, up from 31 percent two years ago … Read More »

Are You Ready for the Next Boom?

According to a new study from the New York Federal Reserve the best way to stimulate demand is to reduce down payments, a strategy that’s more effective than lowering interest rates-whicb is probably obvious to most street Realtors.  Now it can be proved scientifically. The Fed economists queried prospective buyers to determine their willingness to buy a home under different … Read More »

Freddie Mac: Get Ready for 5% Rates in 2015

    Rates on a thirty-year fixed rate mortgage will hit 5 percent by the end of next year, according to the latest forecast from Freddie Mac’s economists.  Expect to see interest rates climb throughout 2015, with yields on the 10-year Treasury averaging about 2.9 percentage points, up from about 2.6 percentage points in 2014, and rates on the 30-year … Read More »

FICO Change Won’t Increase Mortgage Approvals

  Last week FICO announced it would no longer weigh medical debts, which account for about half of all unpaid collections, against debtors as heavily as it has in the past, a move that FICO said could raise some borrowers’ credit scores by as much as 25 points. The revisions, implemented following a study by the Consumer Finance Protection Board … Read More »

Purchase Mortgage Applications Plunge

It might be hot outside but its freezing in the inboxes of hundreds of the nation’s mortgage lenders.  Last week applications fell to their lowest level since February. Maybe it’s just a sign that the selling season is winding down. More likely it’s something a lot more serious—yet another signal that the housing recovery is seriously sick and keeps getting … Read More »

Buyers Bloom in the Springtime


Daffodils, April showers, robins and a new crop of For Sale signs seem to be working their seasonal magic on home buyers.  The latest Fannie Mae survey, conducted in March, reports that the gloominess that shrouded buyers during the bitter winter months has melted away and attitudes are nearly as positive as they were a year ago. Consumers who said … Read More »

Lenders: QM Rule will Bump up Rates for Low FICOs


  The qualified mortgage (QM) rule that took effect in January will raise mortgage rates for borrowerw with lower FICO according to survey of lenders released today. A survey by economists at the National Association of Realtors found that borrowers who cannot qualify for QM status because of their credit histories will pay a big price in higher mortgage rates. … Read More »

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