Unconventional mortgages are returning, but is it a problem?

During the 2008 economic recession and afterwards, “subprime” became a buzzword in general discussions about what led to the housing market crash. That was for good reason. In 2004-2006, the years leading up to the crash saw as many as 20% percent of mortgages national were subprime. Most of them were adjustable rate mortgages from […]

Fannie Mae Facility

Fannie Mae, Freddie Mac now permitted to keep $45 billion in profits

The nation’s two biggest mortgage lenders, Fannie Mae and Freddie Mac, will now be able to retain a larger share of their profits as the United States looks to transition them into private control.  The Treasury Department and Federal Housing Finance Agency announced Monday that a new letter of agreement aims to boost the capital […]

Higher Home Prices

Home prices are rising again as mortgage rates remain low

Low mortgage rates in the United States are finally beginning to drive price increases in the housing market. It’s a trend some analysts believe is going to pick up steam over the next year. For months, the low 30-year fixed mortgage rate (now hovering between 3.5% and 3.6%) has been encouraging a boom in refinance […]

Keys to home

Refinancing boom has mortgage brokers swamped with applications

The surge in mortgage refinancing applications in 2019, led by prolonged falling interest rates in the United States, has work piling up for the mortgage brokers who are processing them.  Compared to a year ago this past week, refinancing applications were up an incredible 116%, according to the Mortgage Bankers Association.  With the 30-year fixed […]

FannieFreddie Chart

New data reveals American’s gut sense for predicting mortgage rates

Over the first half of 2019, mortgage rates in the United States dipped to near-historic lows. Americans who were paying attention have reaped the benefits of refinancing, and there’s now enough data to prove they have a good gut sense.  Mortgage liquidity provider Fannie Mae conducts a monthly survey in which U.S. citizens are asked […]

Home Interior

Low mortgage rates bring surge in refinancing, prepayments

Mortgage interest rates have hit their lowest levels since 2016. The favorable environment now opening up for consumers is sending ripple effects through the economy.  As the Federal Reserve moves closer to easing monetary policy, there’s no immediate sign that the near-record low rates will reverse.  The most recent Freddie Mac rate report had the […]