Archive for Mortgage Loan Information
Reno Mortgage
Posted by: | CommentsAlpine Lending Group, NV Mortgage News
Good day all,
Hard to believe that we are already ensconced with the spring season, in spite of the colder weather. Hey, but that’s part of the beauty of living in the mountains, somewhat like a box of chocolates. “You never know what you’re gonna get”.
The markets have already closed due to Good Friday. The last couple of weeks have generated quite a roller coaster ride of mortgage rate movement. All this and still landing in the low 5% range. Freddie is having a short-term bond auction on Monday. Not much to report.
Make it a joyous weekend!
Support your local mortgage broker!!
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Nevada Home Mortgage
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Good news for Nevada Home Mortgages
Bernanke: Record-low rates needed to aid economy
Fed Chairman Bernanke says record-low rates still needed to rev up the economic recovery
Jeannine Aversa, AP Economics Writer, On Thursday March 25, 2010, 12:05 pm
WASHINGTON (AP) — Record-low interest rates are still needed to rev up the economic recovery, Federal Reserve Chairman Ben Bernanke told Congress on Thursday.
Bernanke, in testimony to the House Financial Services Committee, essentially repeated the rationale behind the Fed’s decision last week to hold rates near zero. He cited still-fragile economic conditions, and noted that inflation is low, which gives the Fed leeway to keep rates at rock-bottom levels.
The Fed chief didn’t offer new clues about when the central bank might reverse course and start tightening credit. He said that would need to happen when the “expansion matures.” Some investors and analysts think higher rates could come in the fall.
Deciding when to tighten credit is the biggest challenge facing Bernanke, whose second term started in February. Moving too soon could short-circuit the recovery. Waiting too long could unleash inflation and sow the seeds for new speculative bubbles in stocks or commodities or other assets.
One of the reasons the Fed is holding rates so low is because of stubbornly high unemployment, Bernanke said. It’s now at 9.7 percent, a potential restraining force on the economy’s rebound.
Bernanke said the Fed “will not be able to wait until things are completely back to normal” before it starts to boost rates. But the Fed wants to make sure that the economy is on a sustainable growth path and that jobs are being created, he said.
“The key point … is that the Fed is no closer to implementing its exit strategy,” said Paul Dales, an economist at Capital Economics. Bernanke’s remarks suggest “he is in no hurry” to raise rates, Dales said.
On Wall Street, the Dow Jones industrial average was up nearly 100 points — and broader markets also rose — after a report showed that fewer Americans filed initial jobless claims than economists expected.
The Fed kept a pledge last week to hold rates at record lows for an “extended period,” a decision that drew one dissent.
Bernanke said the term “extended period” isn’t a fixed number of months. Rather, it is tied to how economic conditions evolve. If the economy were to rebound more strongly than anticipated, then the Fed would “respond appropriately” and start raising rates, Bernanke explained.
Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, however, expressed concern that keeping rates at record low could cause a buildup of “financial imbalances” and put the economy’s stability at risk. Analysts took that to mean low rates could spur a new speculative bubble later on that could burst and hurt the economy.
A housing boom that went bust thrust the country into the worst economic and financial crises since the 1930s.
In other observations, Bernanke said the housing market is “still quite weak.”
Nonetheless, the Fed is on track to shut down a $1.25 trillion mortgage-securities-buying program at the end of this month. The program has lowered mortgage rates and bolstered the housing market.
Bernanke said the Fed will monitor closely how mortgages rates react after the program ends. The Fed could revive the program if the economy weakens.
Support your local mortgage broker!! Alpine Lending Group
Federal Reserve’s purchase program of mortgage-related debt.
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Good morning all,
Here is some good info from Rob Chrisman’s morning newsletter…
We have less than a week until the end of the Federal Reserve’s purchase program of mortgage-related debt. Eyes are on the difference between mortgage and Treasury rates – remember that yesterday ALL rates rose. But there appears to be a continued belief that even without the Fed there will be enough investors in mortgage-backed securities that a big jump is very unlikely. A jump of .1-.25% perhaps, but not the .5% or worse that some were forecasting a month ago. Less supply (40% less in 2010 versus 2009 by some estimates), and solid interest in owning mortgages should come into play by mutual funds, pension funds, foreign entities, and private investors. In late 2008, the average 30-year fixed mortgage rate topped 6.30%, and is now around 5.05%. Of course, during that time the Fed has purchased $1.25 trillion in MBS’s, along with $175 billion in agency debt. Besides, are rates really the reason for lower mortgage production? Unemployment, appraisal values, and stricter guidelines obviously are an issue.
Support your local mortgage broker!!
Nevada Home Mortgage
Posted by: | CommentsNevada Home Mortgage
Mortgage rates held below the 5 percent threshold for the second straight week, a report said Thursday, weeks before a government program that has been keeping rates low is scheduled to expire.
The average rate on a 30-year fixed rate mortgage was 4.95 percent this week, down from 4.97 percent a week earlier, mortgage finance company Freddie Mac said.
Rates dropped to a record low of 4.71 percent in December and have hovered around 5 percent since, kept down by a Federal Reserve campaign to stabilize the housing market by lowering mortgage rates.
The central bank’s $1.25 trillion program to buy up mortgage securities issued by Freddie Mac and sibling company Fannie Mae is set to expire March 31. But the Fed has held the door open to extending the program if the economy weakens.
Some analysts argue that rates could rise once the Fed’s program ends, hurting both the recovery in housing and the overall economy. But government officials are optimistic that the Fed will be able to end its program without a major disruption.
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day, often in line with long-term Treasury bonds.
This week, the average rate on a 15-year fixed-rate mortgage was 4.32 percent, down from 4.33 percent last week, according to Freddie Mac.
Rates on five-year, adjustable-rate mortgages averaged 4.05 percent, down from 4.11 percent a week earlier. Rates on one-year, adjustable-rate mortgages fell to 4.22 percent from 4.27 percent.
The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount.
The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 of a point for 30-year and 15-year loans and 0.6 of a point for five-year and one-year loans.
Reno Nevada Mortgage Rates
Posted by: | CommentsGood day all,
As the following article came out last night, it is old news. The rates stayed under 5% until this morning, of course.
As CA has recently gotten on board with the federal SAFE Act, I took some time to read through it. I was surprised to see that “employees” of federally chartered banks will not have to comply. The rest of us, independent mortgage brokers and our agents, will have to take additional continuing education and yet another test, as well as the state required CE. NV plans to be on board by September.
As I encourage my clients to “shop” me, I have been seeing lots of GFE 2010s and “worksheets” coming from banks and direct lenders that are not standardized. They are leaving out some of the loan costs. And here I thought that the banks now were required to make full disclosure. Of course, they state that there are no other “hidden” costs, yet they do not disclose their net return. Hmm, their “employees” are not required to take the national education courses or the test and they don’t have to disclose the back end return. It’s all politics. So please, Support your local mortgage broker ;o)
Everyone log onto: www.thinkbigworksmall.com and watch the daily video. Good stuff by two guys in our industry making some noise.
If you have any comments about Nevada Mortgage Rates click below.
Mortgage Brokers
Posted by: | CommentsNevada and California Mortgage Brokers
Often, people confuse mortgage brokers with lenders. A Nevada mortgage broker offers the loan products of various lenders, while a lender provides the actual loan money to the borrower. Essentially, a mortgage broker is a loan provider who serves as a liaison between borrowers and lenders.
Mortgage brokers accept applications from borrowers and seek to lock in rates and terms with lenders. They also provide required Nevada and California State and federal disclosures. Additionally, brokers gather all necessary documents, including, but not limited to, credit reports, employment verifications, asset disclosures, and property appraisals. Once an application file is deemed complete, the mortgage broker submits it to the appropriate lender, who then handles loan approval and disbursement.
