Housing Market Recovery Dependent On Reduction Of “Oversupply Of Distressed Homes” (Video)

10 09 2011
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30-Year Fixed Mortgage Rates Fall To Historic Low Of 4.12% In Latest Week On Poor Economic Data

9 09 2011
  • 30-year fixed-rate mortgage (FRM) averaged 4.12 percent with an average 0.7 point for the week ending September 8, 2011, down from last week when it averaged 4.22 percent. Last year at this time, the 30-year FRM averaged 4.35 percent.  
  • 15-year FRM this week averaged 3.33 percent with an average 0.6 point, down from last week when it averaged 3.39 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, the same as last week when it averaged 2.96 percent. A year ago, the 5-year ARM averaged 3.56 percent.
  • 1-year Treasury-indexed ARM averaged 2.84 percent this week with an average 0.6 point, down from last week when it averaged 2.89 percent. At this time last year, the 1-year ARM averaged 3.46 percent.  

“Market concerns over Eurozone sovereign debt default and a weak U.S. employment report for August placed downward pressure on Treasury bond yields and allowed fixed mortgage rates to hit new lows this week. On net, the economy added no new jobs last month and was the weakest reading since September 2010. Meanwhile, the unemployment rate remained at 9.1 percent, marking its 31st consecutive month of being above 8 percent, the longest such stretch in 70 years.

  • “The Federal Reserve (Fed) painted a bleaker picture as well in its September 7th regional economic review. Seven of its 12 Districts reported more subdued views of business conditions. Many of the Fed’s manufacturing contacts downgraded or became more cautious about their near-term outlooks due to increased economic uncertainty.”

Get the latest information from Freddie Mac’s Office of the Chief Economist on Twitter: @FreddieMac





Foreign National Mortgage Programs Allow For Non-Resident And Non-U.S. Citizens To Purchase Owner-Occupied And Second Homes With Condos Included

7 09 2011

Foreign National Loan Program includes Non-Resident and Non-U.S. Citizens borrowing for second homes, extended to all countries, not just Canada. The following are required guidelines:

  • Maximum loan amount $417,000
  • 30-year fixed rate mortgage
  • 30% down payment required from borrower’s own funds and must have 6 months reserves in a US bank before closing
  • MAX LTV 70%  – NO GIFTS
  • Must have 24 months of credit history
  • Income amounts must be converted into US dollars
  • Credit report must contain four (4) trade lines
  • 700 credit score minimum required
  • 36/45 DTI
  • Single family homes and condos allowed
  • Property must be in an area where second homes are common and customary
  • Can not own additional US property
  • Borrowers with diplomatic immunity are ineligible




30-Year Fixed Mortgage Rates End Latest Week At 4.22% As Weak Economic Data Keeps Rates At All-Time Lows

2 09 2011
  • 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.

“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.”

For more:  http://freddiemac.mediaroom.com/index.php?s=12329&item=56124