http://mortgagemarketminute.com/ en-us http://mortgagemarketminute.com/post/2759664/breaking-news-fed-unlikely-to-raise-rates-until-at-least-2014 Thomas Crate, CA DRE #01470571, NMLS #332624 (Mountain West Financial) Wed, 25 Jan 2012 13:44:13 -0500 http://mortgagemarketminute.com/post/2759664/breaking-news-fed-unlikely-to-raise-rates-until-at-least-2014 http://mortgagemarketminute.com/post/2740146/breaking-news Bank of America will halt originations of cash-out refinancings, citing what it calls a capacity problem. Source: National Mortgage News Thomas Crate, CA DRE #01470571, NMLS #332624 (Mountain West Financial) Fri, 20 Jan 2012 14:40:52 -0500 http://mortgagemarketminute.com/post/2740146/breaking-news http://mortgagemarketminute.com/post/2735609/tax-cut-extension-now-officially-raising-mortgage-rates On Dec. 23, 2011, President Obama signed into law the Temporary Payroll Tax Cut Continuation Act of 2011. Among its provisions, this new law directs the Federal Housing Finance Agency (FHFA) to increase guarantee fees charged by Fannie Mae and Freddie Mac (Government Sponsored Agencies or GSEs) from the average guarantee fees charged by these companies in 2011 on single-family mortgage-backed securities. This requirement is effective immediately, meaning that the average guarantee fees charged in 2012 needs to be greater than the average guarantee fees charged in 2011. The increase in the Guaranty Fee or "G-Fee" as it's called, equates to approximately a pricing difference of 50 basis points more in terms of costs or roughly 0.25% higher in rates. Thomas Crate, CA DRE #01470571, NMLS #332624 (Mountain West Financial) Thu, 19 Jan 2012 13:01:14 -0500 http://mortgagemarketminute.com/post/2735609/tax-cut-extension-now-officially-raising-mortgage-rates http://mortgagemarketminute.com/post/2570159/breaking-news-harp-refinance-program-expanded Borrowers who are current on their home loans may be able to refinance for lower interest rates, even if they are seriously upside down. The Federal Housing Finance Agency (FHFA) announced today that it will broaden the scope of the Home Affordable Refinance Program (HARP) by removing the current 125 percent loan-to-value cap for fixed-rate mortgages backed by Fannie Mae and Freddie Mac. Other program enhancements include, among other things, reducing certain fees, eliminating the need for a new property appraisal if the FHFA has a reliable automated valuation model (AVM) estimate, and extending HARP until the end of 2013. New federal guidelines for the HARP changes should be released to mortgage lenders and servicers by November 15. The basic eligibility requirements for an enhanced HARP loan are as follows: • Existing mortgage loan must be owned or guaranteed by Fannie Mae or Freddie Mac. • Existing mortgage loan must have been sold to Fannie Mae or Freddie Mac before June 1, 2009. • Existing mortgage loan cannot have been refinanced under HARP previously (except for Fannie Mae loans refinanced between March and May 2009). • Current loan-to-value (LTV) ratio must be more than 80%. • Existing mortgage loan must be current, with no late payments in the past six months, and no more than one late payment in the past 12 months. Thomas Crate, CA DRE #01470571, NMLS #332624 (Mountain West Financial) Mon, 24 Oct 2011 14:00:38 -0400 http://mortgagemarketminute.com/post/2570159/breaking-news-harp-refinance-program-expanded http://mortgagemarketminute.com/post/2569848/ray-of-hope-for-underwater-borrowers Thomas Crate, CA DRE #01470571, NMLS #332624 (Mountain West Financial) Mon, 24 Oct 2011 11:41:51 -0400 http://mortgagemarketminute.com/post/2569848/ray-of-hope-for-underwater-borrowers http://mortgagemarketminute.com/post/2566519/breaking-news-senate-passes-measure-to-restore-higher-gse-loan-limits Friday, October 21, 2011 The Senate late Thursday approved an amendment to restore the $729,750 maximum loan limit on government-back mortgages for two more years. Sponsored by Senators Robert Menendez, D-N.J. and Johnny Isakson, R-Ga., the measure rolls back the October 1 reductions in Fannie Mae, Freddie Mac and FHA/VA loan limits in high cost areas. The expiration of the higher loan limit has "made a weak housing market even weaker,” said Sen. Menendez during the Senate debate. “If we don't get that weak housing market moving again, we won't get the kind of robust economic recovery that Americans deserve.” The Menendez-Isakson amendment also restores the FHA loan limit to 125% of the median house price in low cost areas. It was reduced to 115% on October 1. The Senate approved the loan limit amendment by a 60-38 vote. It now moves to the House. It took a minimum of 60 votes under Senate rules to approve and attach the amendment to a Department of Housing and Urban Development appropriations bill. The National Association of Realtors lobbied heavily to get the necessary votes, officials said. To cover possible losses on higher balance Fannie/Freddie mortgages, the amendment imposes an annual 15 basis point fee on “jumbo GSE” loans. Source: National Mortgage News Thomas Crate, CA DRE #01470571, NMLS #332624 (Mountain West Financial) Fri, 21 Oct 2011 15:01:19 -0400 http://mortgagemarketminute.com/post/2566519/breaking-news-senate-passes-measure-to-restore-higher-gse-loan-limits http://mortgagemarketminute.com/post/2564749/it-s-time-to-buy-that-house U.S. house prices have plunged by nearly a third since 2006, and homeownership rates are falling at the fastest pace since the Great Depression. The good news? Two key measures now suggest it's an excellent time to buy a house, either to live in for the long term or for investment income (but not for a quick flip). First, the nation's ratio of house prices to yearly rents is nearly restored to its prebubble average. Second, when mortgage rates are taken into consideration, houses are the most affordable they have been in decades. Two of the silliest mantras during the real-estate bubble were that a house is the best investment you will ever make and that a renter "throws money down the drain." Whether buying is a better deal than renting isn't a stagnant fact but a changing condition that depends on the relationship between prices and rents, the cost of financing and other factors. But the math is turning in buyers' favor. Stock-oriented folks can think of a house's price/rent ratio as akin to a stock's price/earnings ratio, in that it compares the cost of an asset with the money the asset is capable of generating. For investors, a lower ratio suggests more income for the price. For prospective homeowners, a lower ratio makes owning more attractive than renting, all else equal. Nationwide, the ratio of home prices to yearly rents is 11.3, down from 18.5 at the peak of the bubble, according to Moody's Analytics. The average from 1989 to 2003 was about 10, so valuations aren't quite back to normal. But for most home buyers, mortgage rates are a key determinant of their total costs. Rates are so low now that houses in many markets look like bargains, even if price/rent ratios aren't hitting new lows. The 30-year mortgage rate rose to 4.12% this week from a record low of 3.94% last week, Freddie Mac said Thursday. (The rates assume 0.8% in prepaid interest, or "points.") The latest rate is still less than half the average since 1971. As a result, house payments are more affordable than they have been in decades. The National Association of Realtors Housing Affordability Index hit 183.7 in August, near its record high in data going back to 1970. The index's historic average is roughly 120. A reading of 100 would mean that a median-income family with a 20% down payment can afford a mortgage on a median-price home. So today's buyers can afford handsome houses—but prudent ones might opt for moderate houses with skimpy payments. For example, the median home in the greater Phoenix market, including houses, condos and co-ops, costs $121,700, according to Zillow.com. With a 20% down payment and a 4.12% mortgage rate, a buyer's monthly payment would be about $470. Rent for a comparable house would be more than $1,100 a month, according to data provided by Zillow.com. Of course, all of this assumes mortgages are available—no given now that lending standards have tightened. But long-term data on down payments and credit scores suggest conditions are more normal than many buyers think, according to Stan Humphries, chief economist at Zillow. "If you have good credit, a job and a down payment, you can get a mortgage," Mr. Humphries says. "There's more paperwork and scrutiny than five years ago, but things are pretty much like they were in the '80s and '90s." Not all housing markets are bargains. Mr. Humphries says Zillow has developed a new price/rent ratio that uses estimates for each individual property rather than city medians, to better reflect the choices facing typical buyers. A fresh look at the numbers suggests Detroit and Miami are plenty cheap for buyers, with price/rent ratios of 5.6 and 7.7, respectively. New York and San Francisco are more expensive, with ratios of 17.6 and 17.2, respectively. The median ratio for 169 markets is 10.7. For investors seeking income, one back-of-the-envelope way of seeing how these numbers stack up against yields for other assets is to divide 1 by the price/rent ratio, resulting in a rent "yield." The median market's rent yield is 9.3% and Detroit's is 17.9%. Investors would then subtract for taxes, insurance, upkeep and other expenses—costs that vary widely. But suppose total costs were 4% of the purchase price. That would still leave a 5.3% rent yield in the typical market. With the 10-year Treasury yield at 2.2% and the Standard & Poor's 500-stock index carrying a dividend yield of 2.1%, rents for residential housing in many markets look attractive. A few caveats are in order. First, not all transactions are average ones. Even in low-priced markets, buyers should shop carefully. Second, prices could fall further. Celia Chen, a senior director at Moody's Analytics, expects prices to drop 3% before bottoming early next year and rising slowly thereafter. "If the economy slips back into recession, however, we could easily see a 10% drop," Ms. Chen says. And property "flipping" can be dangerous even when prices are rising. That is because, absent a real-estate boom, house price gains simply aren't that exciting. Research by Yale economist Robert Shiller suggests houses more or less track the rate of inflation over long time periods. Houses aren't the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump. -- WSJ Thomas Crate, CA DRE #01470571, NMLS #332624 (Mountain West Financial) Thu, 20 Oct 2011 13:26:30 -0400 http://mortgagemarketminute.com/post/2564749/it-s-time-to-buy-that-house http://mortgagemarketminute.com/post/2551328/top-6-reasons-mortgage-applications-are-rejected Half of refinance applications are abandoned or rejected, as are 30 percent of purchase mortgage applications, according to the Mortgage Bankers Association. All told, the Federal Financial Institutions Examination Council (FFIEC) says that well over 2 million mortgage applications were rejected last year. Want to avoid falling into that number? It's tough -- especially in light of the fact that mortgage lenders have become increasingly restrictive in terms of their lending guidelines since the housing market crash. Here, as a cautionary tale and primer on what to expect, are the top six reasons mortgage lenders reject applications. 1. Income issues. Most failed applications falling into this category have income too low for the mortgage amount they are seeking; often, a spouse's credit issues can create this problem, too, as the income the spouse plans to actually chip in toward the mortgage cannot be considered by a lender. But increasingly, the recent vagaries of the job market are also causing this issue, as people who have changed their line of work or have changed from salaried employee to freelancer over the last couple of years can also have their home loan applications rejected based on income. 2. Muddled money matters. If the mortgage for which you're applying plus your monthly payments on credit card, car and student loan debts will comprise more than 45 percent of your total income, you could have problems qualifying for a home loan. You might also run into problems if you rely too heavily on bonuses, overtime, cash wages or rental income -- all of these can be difficult or impossible to get a mortgage bank to consider, and if they do, they might not take all of it into account. 3. Credit issues. Today, the mortgage-qualifying FICO score cutoff falls somewhere between 620 and 660, depending on which lender and which loan type you seek. More than one-third of Americans, by some numbers, have credit scores too low to qualify for a home loan. Even if your credit score is high enough to qualify, if you have any late mortgage payments, a short sale, a foreclosure or a bankruptcy in the last two years, loan qualifying could be difficult to impossible. 4. Property didn't appraise. Since the whole industry had its hand (among other things) smacked for allowing home values to skyrocket in a very short time, appraisal guidelines have tightened up -- some would say, even more than overall mortgage guidelines. So, it is increasingly common to have the property appraise for a price lower than the sale price negotiated between the buyer and seller. This is especially common in the refinance realm, as well over a quarter of U.S. homes are now upside-down, meaning the mortgage balance owed is greater than the value of the home. (If you're trying to refinance an upside-down mortgage, consider the FHA Short Refi program -- contact your lender or get referrals to any mortgage broker who makes FHA details to apply.) 5. Condition problems. With all the distressed properties on the market, and with most nondistressed sellers barely breaking even, more home-sale transactions than ever are falling apart due to condition problems with the property. Many lenders will not extend financing on homes where the appraiser points out problems like cracked or broken windows, missing kitchen appliances, electrical problems, or wood rot. And in the world of condos and other units that belong to a homeowners association, if more than 25 percent of units are rented (rather than owner-occupied) or more than 15 percent are delinquent on their HOA dues, new applications for refinance or purchase mortgages on units in the development are likely to be rejected. 6. Technical difficulties with application. The days when lenders just took your word for it are long, long gone. Applications with incomplete or unverifiable information are doomed. If any of these mortgage loan application glitches arise in your homebuying or refinancing process, it's critical that you connect with your mortgage professional, be it your banker or mortgage broker, to determine what course of action to take. In some cases, it might be as simple as buying a stove you find at Craigslist and installing it before escrow closes; but with income issues your mortgage pro will need to help you determine whether it makes sense to pay some bills down, get a co-signer, or even wait six months so your income documentation will qualify. By Tara-Nicholle Nelson, Inman News™ Thomas Crate, CA DRE #01470571, NMLS #332624 (Mountain West Financial) Tue, 11 Oct 2011 13:47:12 -0400 http://mortgagemarketminute.com/post/2551328/top-6-reasons-mortgage-applications-are-rejected http://mortgagemarketminute.com/post/2546063/another-retail-shoe-drops-at-b-of-a-top-producer-departs Bank of America continues to say that it's committed to retail mortgage lending, but the megabank suffered another blow recently with the departure of one of its top loan producers in the nation, Kevin Budde of Southern California. Budde confirmed to National Mortgage News that he has accepted a branch manager position in Orange County with PrimeLending, the mortgage division of Texas bank PlainsCapital. He took five B of A employees with him. In 2010 Budde was B of A's number one producer nationally among purchase money LOs working with Realtors. “I did about $140 million of loans in Southern California,” he said. Budde had no harsh words for Bank of America, but said he grew frustrated with the lender because of all the “credit overlays” and extra steps it added to the underwriting process. He added that at B of A LOs and their staffs are asked to check over borrower information “two- three- and sometimes four-times.” Such scrutiny is forcing customers to look elsewhere for mortgages, he said, noting that little effort is being made at B of A to retain staff. “The people here are good,” he said. “It's the processes that are killing the business.” Source: National Mortgage News Thomas Crate, CA DRE #01470571, NMLS #332624 (Mountain West Financial) Fri, 07 Oct 2011 17:49:44 -0400 http://mortgagemarketminute.com/post/2546063/another-retail-shoe-drops-at-b-of-a-top-producer-departs http://mortgagemarketminute.com/post/2522556/it-isn-t-possible-to-make-a-second-good-first-impression-why-the-first-offer-is-almost-always-the-best-offer It invariably happens, a property has been on the market for a short time and you receive an offer, but the Seller is reluctant to take it because they think that if there is one Buyer out there, that means that there may be more. In any given market, in any given point in time, there is a pool of Buyers ready, willing, and able to purchase. The particular Buyer that writes an offer has more than likely seen everything out there in the marketplace and is up on all the comparable sales and what is under contract. When that Buyer makes an offer, they have taken into consideration the present market conditions. If that pool of Buyers doesn’t purchase the property, then there is usually one course of action for the Seller; lower the price. Properties priced too high attract fewer Buyers, showings, and offers. Properties priced at market value, generate more Buyer interest. If properties are priced too high, then both Buyers and agents lose interest. In fact, what they do is say to themselves that they will wait out the Seller. Once the Seller gets more realistic, then the Buyers might come back. If the original pool of Buyers has “rejected” the property, then it is more than likely the price has to change significantly to get them back. Well-priced properties on the other hand generate immediate interest among Buyers and agents. If the price is too high, that excitement never happens. Dropping the price later will not generate the same enthusiasm. Unfortunately for the Seller, to pass up on the first offer is a hard lesson to learn. As you have heard, it isn’t possible to make a second good first impression. Source: The Briscoe Group Thomas Crate, CA DRE #01470571, NMLS #332624 (Mountain West Financial) Fri, 23 Sep 2011 14:10:52 -0400 http://mortgagemarketminute.com/post/2522556/it-isn-t-possible-to-make-a-second-good-first-impression-why-the-first-offer-is-almost-always-the-best-offer http://mortgagemarketminute.com/post/2518773/experts-explain-what-is-operation-twist- Thomas Crate, CA DRE #01470571, NMLS #332624 (Mountain West Financial) Wed, 21 Sep 2011 12:33:09 -0400 http://mortgagemarketminute.com/post/2518773/experts-explain-what-is-operation-twist- http://mortgagemarketminute.com/post/2514861/when-will-home-prices-spring-back- To estimate where your own house lies on the recovery spectrum, answer the following questions. HOW FAST ARE NEARBY HOMES SELLING? While it's a good sign when price drops slow down, inventory levels are actually a better gauge of where your market is headed, says David Crowe, chief economist for the National Association of Home Builders. That's because monthly home-value numbers are skewed by seasonal fluctuations, and prices are usually the last thing to budge when a market turns the corner. What to do: Ask a realtor to tell you the number of listings now on the market in your area and the number of homes sold over the past year. Let's say there are 100 listings and there were 240 sales last year, or an average of 20 per month. That equals a five-month supply, which is considered stable. More than six months and it's a buyer's market, says Crowe; less than three and sellers probably have the upper hand. IS BUYING CHEAPER THAN RENTING? People are more likely to buy homes when the payment on a loan is below what they'd pay to rent a similar home. The number to calculate is the price-to-rent ratio, or the price of a home divided by one year's rent on a comparable one. In general, it's cheaper to buy when the price-to-rent ratio is below 15, although some places, such as San Francisco, have higher ratios even in soft markets. What to do: Compare your neighborhood's price-to-rent ratio with what it was before the housing boom. You can find historical sale price info on Trulia.com; your realtor should be able to give you information on rental rates from a few years ago. WHAT'S THE FORECLOSURE FACTOR? Not surprisingly, a decrease in foreclosure filings is often an encouraging sign. But the official data aren't entirely reliable. "In some markets the year-over-year change is artificially low because of processing delays," says Rick Sharga, senior vice president with RealtyTrac. What to do: RealtyTrac.com can tell you if the official level of distressed sales is rising or falling (just plug in your zip code). To suss out the hidden foreclosure factor, take a close look at the homes in your neighborhood. Distressed owners tend to fall behind on lawn cutting and house painting long before a foreclosure, says Crowe. If you see several places in disrepair, don't expect your home value to rise soon. IS YOUR AREA PRIMO? As buyers return, they'll naturally grab places with shorter commutes and better schools and amenities. The Kims' townhouse, for example, was located in Chicago's South Loop area, near Lake Michigan and museums. "Buyers are cherry-picking," says Sharga. You won't buck the larger market trend entirely, but once things are cranking in your favor, your home will pop first. -- Money Magazine Thomas Crate, CA DRE #01470571, NMLS #332624 (Mountain West Financial) Mon, 19 Sep 2011 12:28:49 -0400 http://mortgagemarketminute.com/post/2514861/when-will-home-prices-spring-back- http://mortgagemarketminute.com/post/2505237/finding-the-best-mortgage-lender- How do you find the best mortgage lender to meet your needs? Although many borrowers simply look for the one offering the lowest interest rate, there's more to it than that. The first thing you need to know is that low interest rate isn't necessarily a sign of a good deal. A mortgage or refinance inevitably comes with all kinds of fees and various costs that, when added together, can significantly raise the cost of your loan. So what you want to do is find the best combination of interest rate and fees. More on that later. When shopping for a mortgage, either to buy a home or refinance, there are a variety of different types of lenders that can meet your needs: large institutional banks, national mortgage lenders, online lenders, smaller regional and community banks, savings and loans, credit unions and mortgage brokers, to name some of the main ones. Each offers its own advantages and disadvantages. Large mortgage lender or community bank? The bigger lenders, particularly the large banks and national and online lenders, may be able to offer particularly good rates. However, their loan approval process tends to be fairly structured and may be a poor fit for you if your circumstances or the property you're financing don't fit neatly into cookie cutter categories - like an unmarried couple buying old farmhouse on the edge of a subdivision, for example. Larger lenders may not give the personal service smaller ones do, though that isn't always the case. Many large banks and lending institutions operate local offices with lending officers who can provide a level of personal service similar to a small bank. Don't assume smaller regional lenders can't compete with the big boys on interest rates and fees, either. In fact, many of them are actually correspondent lenders for the larger banks - in essence, offering big-bank mortgages and terms under their own label. Loans tailored to local markets A smaller, local lender, such as a community bank, savings and loan, or credit union, can offer personal service, but that's not their only appeal. These lenders also tend to have a detailed understanding of their local real estate markets and economies, and may be comfortable making loans to clients and on properties in their area that larger lenders may shy away from. Certain lenders, both large and small, will be more willing to extend mortgages to borrowers with poor credit, although they charge higher interest rates to do so. You can track these down on your own, but if that's your situation, you may want to go with a mortgage broker. Brokers work with a large number of lenders to find you the best rate and terms, though they charge a fee for doing so, typically in the form of a slightly higher interest rate than if you'd contacted that same lender directly. Still, many people find the convenience they offer and knowledge of where to find the best terms to make their services well worthwhile. What to look for in a loan officer To choose a mortgage lender, you want to find someone who's knowledgeable and who you're comfortable working with. Does the loan officer/broker readily answer your questions? Do they seem knowledgeable, or do they keep having to get back to you on things they ought to know? Do they return calls promptly? Finally, do they strike you as a mortgage professional or just someone who's trying to get you to sign on the dotted line? When you find a few brokers you're comfortable with, and who seem to be offering attractive rates and terms, it's time to do some serious shopping. Ask 3-4 for rate quotes (you shouldn't have to pay for this), based on the amount you want to borrow. Try to submit all your requests in a single morning or afternoon, since rates change several times a day. Comparing mortgage quotes For each quote you request, you'll receive a federally required Truth in Lending form (TIA), which will spell out the interest rate they're offering and any fees that will be charged for originating the loan and other costs. It will also show something called the Annual Percentage Rate (APR), which is a way of combing the interest rate and lender fees into a single figure. Basically, the APR is what you'd pay if all the lender's fees were built into the interest rate, rather than being added onto the loan amount. It's a good way to compare the actual cost of different loan offers, within limits. The APR won't reflect the cost of non-lender fees, which will also be listed on the TIL form, and you can't use it to compare dissimilar loans, like a 30-year mortgage to a 20-year one, or the cost of a 7-year adjustable rate mortgage (ARM). But it will let you compare apples to apples, mortgagewise, and determine which lender is offering the best deal. By Peter King, MortgageLoans.com Thomas Crate, CA DRE #01470571, NMLS #332624 (Mountain West Financial) Tue, 13 Sep 2011 12:45:00 -0400 http://mortgagemarketminute.com/post/2505237/finding-the-best-mortgage-lender- http://mortgagemarketminute.com/post/2487266/big-banks-face-suits-on-mortgage-bond-losses- The federal regulator for mortgage giants Fannie Mae and Freddie Mac is preparing to sue some of the nation's largest banks over soured mortgage bonds in a bid to recoup billions of dollars in losses from the failed investments, according to people familiar with the matter. The Federal Housing Finance Agency, which is charged with conserving the assets of the failed mortgage giants, could file the lawsuits in the coming days, these people said. The suits are likely to allege that mortgages that were securitized by Wall Street firms and other issuers misled investors about the quality of the loans. -- WSJ Thomas Crate, CA DRE #01470571, NMLS #332624 (Mountain West Financial) Fri, 02 Sep 2011 12:58:12 -0400 http://mortgagemarketminute.com/post/2487266/big-banks-face-suits-on-mortgage-bond-losses- http://mortgagemarketminute.com/post/2485153/mortgage-rates-remain-at-or-near-historic-lows MCLEAN, Va., Sept. 1, 2011 /PRNewswire via COMTEX/ -- Freddie Mac /quotes/zigman/226335 FMCC -1.94% today released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates declining amid continued weak economic and housing data. While the 30-year fixed held steady, the 5-year ARM set a new all-time record low having fallen for the eighth consecutive week and now standing at 2.96 percent. News Facts 30-year fixed-rate mortgage (FRM) averaged 4.22 percent with an average 0.7 point for the week ending September 1, 2011, matching last week when it also averaged 4.22 percent. Last year at this time, the 30-year FRM averaged 4.32 percent. 15-year FRM this week averaged 3.39 percent with an average 0.6 point, down from last week when it averaged 3.44 percent. A year ago at this time, the 15-year FRM averaged 3.83 percent. 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent this week, with an average 0.6 point, down from last week when it averaged 3.07 percent. A year ago, the 5-year ARM averaged 3.54 percent. 1-year Treasury-indexed ARM averaged 2.89 percent this week with an average 0.6 point, down from last week when it averaged 2.93 percent. At this time last year, the 1-year ARM averaged 3.50 percent. Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage. Visit the following links for Regional and National Mortgage Rate Details and Definitions. Quotes Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac. "Weaker economic data reports eased upward pressure on mortgage rates this week and kept them at or near all-time record lows. The economy grew at a slower rate of 1 percent in the second quarter than was originally reported due to a smaller increase in inventories and fewer exports. In addition, consumer confidence in August fell to the lowest reading since April 2009, according to The Conference Board. "Recently released data on the housing market also showed less strength as well. The S&P/Case-Shiller® National Index fell 5.9 percent between the second quarters of 2010 and 2011, representing the largest yearly decrease since the third quarter of 2009. Moreover, July's pending sales of existing homes fell at a monthly rate of 1.3 percent, the first decline since April 2011." Get the latest information from Freddie Mac's Office of the Chief Economist on Twitter: @FreddieMac Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters. SOURCE Freddie Mac Thomas Crate, CA DRE #01470571, NMLS #332624 (Mountain West Financial) Thu, 01 Sep 2011 12:33:13 -0400 http://mortgagemarketminute.com/post/2485153/mortgage-rates-remain-at-or-near-historic-lows